The Tulip Lunacy in the Bond market is just off the charts stupidity at its finest! The U.S. 2-Year Bond is currently pricing in no rate hike, and in fact, a negative rate of inflation over the next two years....
Greenspan was criticized by some for keeping the loose monetary policy far too long leading to the housing bubble. Chairwoman Yellen would be prudent to learn from history and not to repeat the similar missteps.
Regardless what happens with the U.S. Shale, the Cartel is always going to be worse off by not agreeing to production cuts.
It is time to raise rates, deal with it Wall Street there will never be a perfect time to raise rates based upon Wall Street`s criteria.
Has too much bearish sentiment been priced in too fast in the price of oil?
The only reason this bond bubble exists isn`t due to the lower price of oil, it is directly a result of too much cheap liquidity via ridiculously low interest rates by central banks.
We know low interest rates and QE hasn`t worked, or they wouldn`t have to be re-initiated in the form of additional QE Programs, and we wouldn`t still be having this entire conversation 7 years after ZIRP began.
Maybe overzealous bond investors might want to rethink that Yield Chasing Strategy for 2015.
Ebola isn`t a new movie release, and CNN isn`t its viral marketing advertising agency.
The difference between 2007 and today is back then these were largely sub-prime loans and overvalued real estate mortgages, vs, today's entire global bond market bubbles from Spain and Greece to the United States.
The job market is tightening, and by any normal measure interest rates should be following suit and rising as well regardless of whether the US Dollar also strengthens.
There are some serious reserves 'estimate' discrepancies rife in the U.S. shale industry that could be at least on par with how Enron 'mis-communicated' to investors its leverage position...
There is something seriously wrong if the Federal Reserve cannot raise the Fed Fund`s Rate a measly 100 basis points after 7 longs years of ZIRP. Seven years is an entire business and economic cycle!
Those of you who thought volatility was high this past week just wait until the Fed waits to the “Whites of the eyes of inflation” before raising rates.
As I was shorting S&P Futures late Thursday night it once again hit home how close financial markets are to some major shocks all due to ridiculous amounts of liquidity by Central Banks all over the world.