• EconMatters
    04/27/2015 - 14:18
    If the DOJ and CFTC is going to be consistent, then they have to indict the entire financial community from the CME, Exchanges, Brokers, Institutions, Investment Banks, Hedge Funds, Management Funds...

Carry Trade

Tyler Durden's picture

The Pathetic 'Talk Therapy' Of Janet Yellen





What in god’s name does Janet Yellen think she is doing? Just a few weeks ago she established the ridiculous Fedspeak convention that “patient” means money market rates will not rise from the zero bound for at least two meetings. Now she has modified that message into “not exactly”.

 
Capitalist Exploits's picture

Understanding the Markets Through Ab Workout [Thanks George Soros!]





Financial markets and investing reflect the same characteristics as my attempt at keeping fit

 
EconMatters's picture

Janet Yellen Encourages More Levered Risk Taking in Markets Tuesday





The last thing Janet Yellen needs to be doing right now is cheer-leading more risk taking on behalf of financial market participants!

 
Tyler Durden's picture

Why ZIRP/NIRP Is Killing Fractional Reserve Banking & Forcing Deposits Into Gold





With historically low long-term interest rates, the opportunity cost of holding gold and silver are close to zero or even negative, in other words you would “lose” money if you buy bonds (the benchmark) instead of gold and silver. When people realize that their money is not “safe” with the banks they will start withdrawing cash from their accounts and buy physical gold and silver instead. Depending on circumstances this could possibly bring down the (fractional) banking system. Why keep money in an account that gives you a negative return? Swiss banks are already witnessing stronger than normal interest for physical gold.

 
lemetropole's picture

GATA And Martin Armstrong Have Gone At It For Nearly 17 Years!





 

 

 

A couple of days ago a Café member sent me some of the latest commentary by Martin Armstrong of Armstrong Economics, formally of Princeton Economics International. As you will read, he continues his rant against "the gold promoters," a rant that seemed more than vaguely familiar.

What an understatement!

 
Phoenix Capital Research's picture

The Problem Country That’s Bigger Than Greece, Spain Italy and France Combined





This problem DWARFS Greece, Spain, Italy, even France (combined).

 
Tyler Durden's picture

A Very Pernicious Partnership: Keynesian Money Printers And Wall Street Gamblers





The phony 5.7% domestic unemployment rate reported yesterday has nothing to do with full employment. The relevant number in the report is that there are still 101 million working age Americans who do not have jobs, and only 45 million of them are on OASI retirement benefits. And that says nothing about the tens of millions of job holders who are employed far less than a full 40 hour work week. In short, there is a surfeit of available labor at home and abroad, meaning 3-4% wage gains are not coming down the pike any time soon or ever. So if that’s what the Fed is waiting for - then the so-called “lift-off” may not be coming even this year. And in any event, the trivial 25 bps increases in the funds rate that may eventually come have nothing to do with interest rate “normalization” or the return of honest price discovery in the casino. And that suits the needs of the Wall Street gamblers just fine.

 
Bruce Krasting's picture

Is 105 the New 120? - A Crazy Thought On What's Next?





"Fuck the CHF and the SNB!" "Those bastards lied to us - I'll never trust them again!"

 
Phoenix Capital Research's picture

Could the US Dollar Carry Trade Crash Stocks?





The last time that stocks were strongly disconnected from reality and the US Dollar began to rally hard was 2008.


 
Tyler Durden's picture

16% Of Global Government Bonds Now Have A Negative Yield: Here Is Who's Buying It





What happens if one expands the Eurozone NIRP universe to include the debt of other countries including Japan, Denmark, Sweden, Switzerland and so on? Conveniently, JPM has done the analysis and finds that a mindblowing $3.6 trillion of government debt traded with a negative yield as recently as last week. This represents 16% of the JPM Global Government Bond Index, or in other words nearly a fifth of all global government debt is now trading with a negative yield, meaning investors pay sovereigns, using other people's money of course, for the privilege of buying their issuance!

 
Tyler Durden's picture

Yesterday's "Dip" Was A Warning... To Get Out Of The Casino





Shortly after yesterday’s open, the S&P 500 was down nearly 2% and off its recent all-time high by 3.5%. But soon the robo-machines and day traders were buying the “dip” having apparently once again gotten the “all-clear” signal. Don’t believe it for a second! The global financial system is literally booby-trapped with accidents waiting to happen owing to six consecutive years of massive money printing by nearly every central bank in the world.

 
Monetary Metals's picture

The Swiss Franc Will Collapse





It’s terrifying how fast the whole Swiss yield curve sank under the waterline of zero. Now even the 15-year bond has negative interest. The franc has reached the end.

 
Tyler Durden's picture

"Greece Is Bear Stearns. Italy Is Lehman" - 7 Quick Points On Europe





In a fundamentals-driven market you need to look at fund flows; in a Narrative-driven market you need to look at Narrative flows. With Draghi’s announcement last Thursday, there is no longer a marginal provider of market-supportive monetary policy Narrative. Or to put this in game theoretic terms, the 2nd derivative of the Narrative of Central Bank Omnipotence just flipped negative. We’ve shifted from an accelerating Narrative flow to a decelerating Narrative flow, and that inflection point in profoundly important in game-playing. The long grey slide of the Entropic Ending begins.

 
Tyler Durden's picture

From Keynesian Shangri-La To Outright War





The problem with all Keynesian styled philosophy is, it works well, and seems utterly brilliant on paper and in the classrooms of academia - when trouble arises its "To the text books!" for answers and BAM! – crisis solved. However in the real world it doesn't work that way. Just like war, when the battle starts, all earlier plans get thrown in the dust heap. And make no mistake, this was all started via armchair generals who believed monetary policy could be managed from within the Ivory Towers of academia and the consequences of these policies are multiplying by the day. As Mike Tyson once said so eloquently: (I’m paraphrasing) "Everybody's got a plan – till someone punches them in the face." The SNB has just landed the first blow. Now what?

 
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