Federal Reserve

Tyler Durden's picture

Janet Yellen Is Freaking Out About "Audit The Fed" – Here Are 100 Reasons Why She Should Be





Janet Yellen is very alarmed that some members of Congress want to conduct a comprehensive audit of the Federal Reserve for the first time since it was created. During testimony this week, she made “central bank independence” sound like it was the holy grail. Even though every other government function is debated politically in this country, Janet Yellen insists that what the Federal Reserve does is “too important” to be influenced by the American people. Does any other government agency ever dare to make that claim? If the Fed is doing everything correctly, why should Yellen be alarmed? What does she have to hide?

 
Tyler Durden's picture

Frontrunning: February 25





  • Invade Syria already, we know you will: Islamic State in Syria abducts at least 150 Christians (Reuters)
  • Greece Struggles to Get Citizens to Pay Their Taxes (WSJ)
  • Doubts Shadow Deal to Extend Greek Bailout (WSJ)
  • In surprise result, Chicago's Mayor Emanuel faces election run-off (Reuters)
  • Obama vetoes Keystone pipeline bill (Reuters)
  • Another sign of the top: Cushman & Wakefield Going Up for Sale (WSJ)
  • Lure of Wall Street Cash Said to Skew Credit Ratings (BBG) ... and threat of DOJ lawsuits also
  • Oil rises to $59 as Saudis say demand growing (Reuters)
 
Tyler Durden's picture

If The Fed Continues This, "There Won't Be Any Active Managers Left In 5 Years"





As the dash-for-trash continues in US equities, Neuberger Berman sums up the state of investing currently, "there has certainly been little reward for owning high-return, superior business models that are conservatively financed," as Bloomberg notes, Fed policy has had the “unintended consequence” of boosting the stocks of companies with heavy debt and little or no earnings. Typically after a recession, such companies lose out to firms that generate more cash and have better balance sheets; this time, no “Darwinian” shakeout happened and low-quality stocks ruled. Managers say they haven’t changed, the market has.

 
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

14 Signs That Most Americans Are Flat Broke And Totally Unprepared For The Coming Economic Crisis





With more than 60 percent of all Americans are living paycheck to paycheck, and a whopping 24 percent of the country has more credit card debt than emergency savings, when the coming economic crisis strikes, more than half the country is going to be financially wiped out within weeks. If you are trusting in the government to save you when things fall apart, you will be severely disappointed.

 
Tyler Durden's picture

Chart Of The Day: The Run For Nasdaq All-Time Highs





While there are many that suggest there is "no bubble" in the financial markets at the current time, a simple look at the extreme elevation of prices over the last couple of years is eerily reminiscent of the late 90's. Given the very elevated levels of investor bullishness, margin debt and complacency, there is more than sufficient evidence that a mean reverting event is highly likely at some point. However, at the moment, the perceived "risk" by investors is "missing the run" rather than the potential destruction of capital if something goes wrong. This is the opposite of what "risk" management is about...

 
GoldCore's picture

Gold Holdings of Eurozone Rise to 10,792 Tonnes – ECB’s “Reserve of Safety” Accumulated





It may signal that the ECB and Eurozone are set to embark on a gold accumulation programme. More likely, it is simply a way to bolster confidence in the euro due to increasing doubts about the viability of the single currency.

 
Tyler Durden's picture

10 Google Search Traffic Charts For The Fed To Consider





As the market anxiously await Janet Yellen's Humphrey-Hawkins testimony this morning, hanging on every word and intonation, ConvergEx's Nick Colas is reminded of Harry Truman’s famous request: “Give me a one-handed economist!”  The U.S. central bank clearly feels challenged by the cross currents of the global economy even as it reiterates confidence in domestic growth prospects. In an effort to help clear things up, Colas brings some 21st century data to the Fed’s distinctly old-school toolset and looks at the historical popularity of 10 Google search terms with a decidedly economic twist. Bottom line: the Google data is clear. The Fed needs to wait a while longer before raising interest rates.

 
Tyler Durden's picture

NIRP Officially Arrives In The US As JPM Starts Charging Fees On Deposits





The nebulous threat of NIRP in the US "some time in the future" became tangible after J.P. Morgan Chase, the largest US bank by assets (and second largest in the US by total derivative notional) is preparing to charge large institutional customers for some deposits. WSJ adds that JPM "is aiming to reduce the affected deposits by billions of dollars, with a focus on bringing the number down this year. "The moves have thrown into question a cornerstone of banking, in which deposits have been seen as one of the industry’s most attractive forms of funding."

 
Tyler Durden's picture

Forget The $1 Trillion Platinum Coin - Here's The $10 Trillion Stone Coin





If creating money is such a good idea, why not let all of us do so? Why not let everyone print as much as they need to get what they want? The answer is of course runaway inflation, as money that can be issued by everyone in unlimited quantities is instantly rendered worthless. The point we're making with the $10 trillion stone coin is that if money is a social contrivance, then it should be distributed to those creating goods and services, not those with influence over easily-bought politicos.
 
Tyler Durden's picture

Frontrunning: February 24





  • Yellen faces Senate grilling on Fed rate policy, transparency (Reuters)
  • Big Banks Face Scrutiny Over Pricing of Metals (WSJ)
  • Greece makes more concessions to euro zone, Germany sets vote (Reuters)
  • Time for another executive order: Longer Lives Hit Companies With Pension Plans Hard (WSJ)
  • The Syria invasion "false flag" approaches: Islamic State in Syria abducts at least 90 from Christian villages (Reuters)
  • Why Lenders Love the $2.5 Million Home Loan (BBG)
  • Reuters journalist Maria Golovnina dies in Pakistan aged 34 (Reuters)
  • Qatar’s Ties to Militants Strain Alliance (WSJ)
 
Tyler Durden's picture

Markets Vs Economy - The Great Disconnect





So, while the markets have surged to "all-time highs," the majority of Americans who have little, or no, vested interest in the financial markets have a markedly different view. Currently, mainstream analysts and economists keep hoping with each passing year that this will be the year the economy comes roaring back but each passing year has only led to disappointment. Like Humpty Dumpty, all the Fed stimulus and government support has failed to put the broken financial transmission system back together again. Eventually, the current disconnect between the economy and the markets will merge. Our bet is that such a convergence is not likely to be a pleasant one.

 
Tyler Durden's picture

Alan Greenspan Warns: There Will Be a “Significant Market Event... Something Big Is Going To Happen”





"We really cannot exit this [era of QE and ZIRP] without some significant market event... The end has to come at some point... Gold will go measurably higher...  In any market that is so one sided, that is accelerating so rapidly, that trend will end… it will most likely end in a fairly violent fashion."

 
Marc To Market's picture

Three Questions to be Answered this Week





Greece moves off front burner. Markets can turn attention to 1) strength of deflationary forces, 2) state of cyclical recoveries, and 3) outlook for Fed policy.

 
Tyler Durden's picture

Why Does Fiat Money Seemingly Work?





Government mandated fiat currency simply does not work in the long run. We have empirical evidence galore – every fiat currency system in history has failed, except the current one, which has not failed yet. The modern fiat money system is more ingeniously designed than its historical predecessors and has a far greater amount of accumulated real wealth to draw sustenance from, so it seems likely that it will be relatively long-lived as far as fiat money systems go. In a truly free market, fiat money would never come into existence though. Greenspan was wrong – government bureaucrats cannot create something “as good as gold” by decree.

 
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