Federal Reserve

Knave Dave's picture

The Dow appears to be whistling past the graveyard in this graph of its fibrillating heartbeat. While everyone knows the Fed has been pumping up stocks for years, this is the most unnatural, rigged-looking, zombie market I've ever seen. Even big Apple's feared fall today couldn't push the market's head underwater more than about ninety minutes.

Frontrunning: October 25

  • Hilsenrath: Fed’s Task Ahead: How Best to Signal Year-End Rate Move (WSJ)
  • Fed Inclined to Raise Rates If Next President Pumps Up Budget (BBG)
  • World stocks, commodities climb as economic confidence lifts (Reuters)
  • Ahead of earnings: Apple Boosted by IPhone 7 Demand, Slowing Pace of Sales Decline (BBG)
  • Campaigns Brace for Election-Day Legal Battles (WSJ)

US Futures, Global Stocks, Metals Rise On Economic Confidence, Upbeat Earnings

European, Asian stocks and S&P futures are all up again in early trading, a repeat of the Monday session, buoyed by a generally upbeat corporate earnings season, rising economic confidence and signs of improvement in the world’s biggest economies. After Charles Evans' hawkish comments on Monday, the market is now pricing in a 71% chance of a rate increase this year, up from 68% last week.

America's "Two-Party System" Has Jumped The Shark

The simple fact is the Two-Party System simply cannot cope with the complex, issue-based reality of America and the world in the 21st Century. It’s old programming that worked when the world was over-simplified by the Cold War into Democracy versus Communism, Freedom versus Totalitarianism, and the Self-Appointed Good versus the Evil Empire. Maybe that’s why the duopoly seems so hot for a new Cold War. The only way their binary system works is if there is a common enemy to turn into America’s common denominator.

Global Stocks Jump On Mega Merger Monday, Buoyed By Earnings, PMIs, Politics

Global stocks jumped around the globe, with Europe's Stoxx 600 and US equity futures rising more than 0.5% on a surge in merger announcements over the weekend including the $85 billion mega takeout of AT&T for Time Warner, the $6.4 billion acquisition of B/E Aerospace by Rockwell Collins, the $2.7 billion deal targeting Genworth by China Oceanwide and the just announced $4 billion purchase of Scotttrade by Ameritrade.

Why All The Yawning Over The Yuan?

China may have decided to strike first, not by intervening, rather, by something more innocuous, but just as devastating: By standing on the sidelines. We're afraid we shall find out much sooner than many imagine...

Trump "Truthers" Versus Hillary's "Hysterically Hyperventilating Hypocrites"

One can measure the validity of Trump’s utterances by the volume of squeals emanating from the pigs he’s stuck. Judging from the deafening din on this one, Trump scored a bullseye. If America’s faith in its elections is undermined, as so many hysterically hyperventilating hypocrites claim, it won’t be because of anything Donald Trump says or does, but because the racketeers rig elections and not all the people stay fooled all the time.

Cashless Society - Is The War On Cash Set To Benefit Gold?

If governments allow banks to shut down bank accounts of individuals or companies without a fair trial and due legal process, it will create a very dangerous situation indeed. In this environment, buying gold is rational behaviour to even the biggest paper-bugs out there. The current monetary experiment of massive QE is no longer the main concern of prudent investors and institutions, it is now combined with negative interest rates and bail-ins.