EconMatters's blog
Wall Street Yield Trade: Another Explanation For Low Inflation
Submitted by EconMatters on 06/10/2014 07:30 -0500One major factor to the slow growth/low inflation in the U.S. is the Wall Street Yield Trade. By incentivizing unproductive use of capital, low interest rate via monetary policy is actually deflationary.
Doom & Gloom Sells
Submitted by EconMatters on 06/07/2014 19:53 -0500Have you become conditioned to always see the negative at the expense of missing the bigger picture?
China-Vietnam Conflict in The South China Sea
Submitted by EconMatters on 06/04/2014 20:55 -0500China is unlikely to show weakness losing face in front of the international community, while it is too late in the game for Vietnam or even the U.S. to back out of the situation.
What To Expect From June's Major Economic & Central Bank Events
Submitted by EconMatters on 05/31/2014 09:35 -0500The interesting part is how the Econ Data and Central Bank events for the next three weeks all directly affect the next event, and how the market digests all these events as a whole.
The Party Is Over In The Treasury Market
Submitted by EconMatters on 05/30/2014 09:17 -0500It is very apparent the Fed literally are making policy up as they go along and Wall Street doesn`t realize that the Fed has no exit strategy. The learning curve is going to be painful as always for Bond Holders.
The U.S. Job Market is Gaining Traction
Submitted by EconMatters on 05/29/2014 15:25 -0500Despite all the doom and gloom in the market, we would have loved to have these employment numbers three years ago.
The Bond Market Explained Part II
Submitted by EconMatters on 05/29/2014 10:35 -0500Since so many people are still slightly confused about how all the pieces come together in this move lower in yields, we feel the need to add some follow-up commentary.
European Bonds Front Running ECB Setup for Disappointment
Submitted by EconMatters on 05/28/2014 18:59 -0500There has been a lot on bond buying in Europe and that enthusiasm has transferred over to the US in anticipation of Draghi's massive bond buying stimulus program similar to that of the U.S. Fed.
The Bond Market Explained For CNBC
Submitted by EconMatters on 05/28/2014 08:46 -0500Our response to a question asked by CNBC-- “Why if everybody is talking about inflation is the bond market not moving?
Hot Inflation Reports to Dominate Next Fed Meeting
Submitted by EconMatters on 05/27/2014 11:57 -0500With much hotter CPI & PPI reports the last two months, we anticipate the May reports before Fed's June meeting to be on the high side, and that the Fed will probably have to address these new inflation pressures....
Coal: A 'Million Dollar Mile' Getting Longer In the U.S.
Submitted by EconMatters on 05/21/2014 16:19 -0500U.S. demand for coal has fallen in recent years and export has become ever more important to domestic coal producers. Asia is the obvious export target, but challenges abound.
U.S. Is Not Japan Or Europe
Submitted by EconMatters on 05/20/2014 14:49 -0500To compare Japanese and European bond yields in order to justify an argument for US bond yields staying historically low once the Federal Reserve is completely out of bond buying is a failed comparison.
Fed to Raise Rates in 9 Months
Submitted by EconMatters on 05/17/2014 12:30 -0500St. Louis Fed James Bullard said on Friday that he expects the Fed to start raising rates sometime near the end of the first quarter of 2015.
May`s Employment Report to Top 300K
Submitted by EconMatters on 05/16/2014 06:20 -0500The labor market is really starting to tighten and Thursday`s initial jobless claims coming in at 297,000 for the May 10 week is the lowest reading since May 2007.
The Worst Risk/Reward Trade on Wall Street
Submitted by EconMatters on 05/09/2014 08:29 -0500A bunch of folks in Hedge Fund Land have this idea that they can force a bit of a squeeze in the bond markets....


