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Israeli Central Bank Is First To Raise Rates
The Bank of Israel recently announced a hike to 0.75%; while still disturbingly close to ZIRP levels, this is significant as the first rate increase from a central bank. Given the Bank of Israel's history as a "fastboat" central bank (as compared to the cruiseliner Fed or iceberg ECB), reacting with "first-mover" advantage on the macro cycle, this is a potentially interesting leading indicator for growth. With inflation expectations close to absolute lows (without hitting that dreaded deflationary spiral), this introduces a lot of potential upside on the short end of the yield curve for many countries. On USDISL specifically, this is a pretty strong indication for a bearish channel especially after the recent termination of daily open market interventions by the Bank of Israel.
Of course, we want to temper the discussion by noting the volatility in Bank of Israel policy, most recently after terrible CPI numbers last summer followed by the Lehman Brothers' cliff dive. This potential policy head-fake is very, very susceptible to the usual list of macro factors.
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I think the new trader at the NY Fed is having a rough morning. Or maybe they hired Fred Fat Finger Flintstone to sell the USD in the morning now. Wow, look at those FX bars in the last hour... No messing around, squashing a chance at having a follow-through US down market day. What was the GS S&P target again?
Pull up a daily on SPY, find the gap from last October and you'll have the target.
Maybe they are just trying to secure a good seat at the bank holiday party.
Six months from now the revisionist MSM is gonna have one helluva time white-washing all this "green shoot" nonsense.
The market used to be about investing; now it's nothing more than a crap-table - literally & figuratively; and in no way reflects the health of the over-all economy, much less the health of the nation.
Such is the lie.
you are quite naive if you thought "The Market" was ever about "investing".
Stanley Fischer's name was floated as a candidate for the NY Fed post, remember?
Anyone have any idea's on this one? This guy went to school for labor studies!?!?! I mean i guess school dosnt mean much anymore after all the ivy league failures but come on!
Maybe one should take into consideration that Israel is a very small economy. Its public debt is mainly financed by the US. This distorts considerably the monetary policy of Israel. It is easy to perform fancy fastboat manoevers, if you are backed by an US aircraft carrier ;).
Nice interview with Kaufmann on CNBC, he named all the tools of the new financial trade. It was fun to watch Cashin carefully choose his words...It will be interesting to see how Kaufmann is dealt with if he keeps pushing...Bribery/promotion, blackmail through hook or maybe digging deep into his past using surveillance/bugging via Partiot Act.
So in review, dollar glitch, market up 50. Market review as proposed by Kaufmann, market up an additional 50. Bernie reapproved, add another 50. Chinese optimistic, subtract 75
The market is in the midst of a bull run since March, and you point to an Israeli bump in interest rates as a bullish sign?
WTF do you call the v-shaped track history this year?
You dicks have been long and wrong for the last 5 months!!
If you'd gone contrary to your "sky is falling" mindset, just how much money might you have made riding DJIA from 6000 to 9500 in five months?
-69 plus 16 equals -53 indeed
I was just thinking we needed more EMH-ers on here...
The market is in the midst of a bull run since March, and you point to an Israeli bump in interest rates as a bullish sign?
WTF do you call the v-shaped track history this year?
You dicks have been long and wrong for the last 5 months!!
If you'd gone contrary to your "sky is falling" mindset, just how much money might you have made riding DJIA from 6000 to 9500 in five months?
-69 plus 16 equals -53 indeed
Forget how much someone might have made, and tell me how much you lost riding it from 14k to 9500 in the last 18 months.
Stanley Fisher wants to contain the irrational exuberance in the Israeli Organ Exchange.
Are there futures and options at the Israeli Organ Exchange?