• GoldCore
    01/24/2015 - 05:15
    So who pays? Someone has to, you can not just create money out of thin air. The answer is “we do, you and I”, in the form of a devalued: currency, diminished savings and devaluing pensions. You are...
  • Marc To Market
    01/24/2015 - 10:27
    I have told you the US dollar was going up for months.  Some mocked me.  Others insulted me.  So what?  I tell you the dollar's bull market remains intact.  

Federal Reserve

Tyler Durden's picture

5 Things To Ponder: A View Of A Correction





It has been a rough start to a new year as all of the gains following the end of the Federal Reserve's flagship "QE-3" campaign have been erased. There is currently little concern by the majority of Wall Street analysts that anything is currently wrong with the markets. While earnings estimates are rapidly being guided down, it is likely only a temporary issue due to plunging oil prices. However, not to worry, the economy is set to continue its upward growth trajectory. Maybe that is the case. But as investors we should always have a watchful eye on the things that could possibly go wrong that could lead to a rapid decline in investment capital.

 
Tyler Durden's picture

Stocks Pop-And-Drop After NYPost "Fed Emergency Meeting" Twitter Hack





The NY Post tweeted that "Federal Reserve head Yellen announces bail-in in emergency meeting, rumored negative rate to be set at 4pm EST today," and US equity markets briefly started to rise... followed by a tweet that "The Fed would peg the Dollar to the Swiss Franc" and "Chinese anti-ship missile fired at USS George Washington." Both seemed odd and shortly after, The NY Post had deleted the tweets and explained that it had been hacked...

 
Tyler Durden's picture

The First Lesson In Dealing With Central Bankers





"The first lesson is never trust a central banker when he or she makes a commitment or gives guidance..."

 
Tyler Durden's picture

The End Of Fed QE Didn’t Start Market Madness, It Ended It





What we see now is the recovery of price discovery, and therefore the functioning economy, and it shouldn’t be a big surprise that it doesn’t come in a smooth transition. Six years is a long time. Moreover, it was never just QE that distorted the markets, there was – and is – the ultra-low interest rate policy developed nations’ central banks adhere to like it was the gospel, and there’s always been the narrative of economic recovery just around the corner that the politico/media system incessantly drowned the world in. That the QE madness ended with the decapitation of the price of oil seems only fitting.

 
Tyler Durden's picture

Why Our Central Planners Are Breeding Failure





Success, we’re constantly told, breeds success. And success breeds stability. The way to avoid failure is to copy successful people and strategies. The way to continue succeeding is to do more of what has been successful. This line of thinking is so intuitively compelling that we wonder what other basis for success can there be other than 'success'? As counter-intuitive as it may sound, success rather reliably leads to failure and destabilization. Instead, it’s the close study of failure and the role of luck that leads to success. In the macro-economic arena, we think it highly likely that the monetary and fiscal policies of the past six years that are conventionally viewed as successful will lead to spectacular political and financial failures in 2015 and 2016. How can success breed failure? It turns out there are a number of dynamics at work.

 
Tyler Durden's picture

Blast From The (Recent) Past: Jim Grant Nails The SNB Decision





"we venture that the SNB will sooner or later be forced to permit the franc to appreciate and thus to enrich the holders of low-priced, three-year call options on the Swiss/euro exchange rate. It's a long shot, to be sure--the options are cheap for a reason--but we judge that the prospective reward is worth the obvious risk." - Jim Grant, Sept 14th, 2014

 
Tyler Durden's picture

3 Things - Employment, Interest Rates & Retail Sales





The majority of the jobs "created" since the financial crisis have been lower wage paying jobs in retail, healthcare and other service sectors of the economy. Conversely, the jobs created within the energy space are some of the highest wage paying opportunities available in engineering, technology, accounting, legal, etc. In fact, each job created in energy related areas has had a "ripple effect" of creating 2.8 jobs elsewhere in the economy from piping to coatings, trucking and transportation, restaurants and retail. Simply put, lower oil and gasoline prices may have a bigger detraction on the economy that the "savings" provided to consumers.

 
Tyler Durden's picture

The Fed & The Price Of Oil





Given the potential for financial losses triggered by oil's price collapse to cascade into the financial sector at large, the Fed may well be forced to intervene either directly or indirectly... Unleash the oil weapon...

 
Sprout Money's picture

Once The Fed’s Payments Will Dry Up, The US Budget Deficit Will Increase





How will the US government fund a sudden additional shortfall of $281 per American per year?

 
Tyler Durden's picture

5 Charts For Fully Invested Bears





Remaining fully invested in the financial markets without a thorough understanding of your "risk exposure" will likely not have the desirable end result you have been promised. All five of the charts below have linkages to each other, and when one goes, they will all go. So pay attention to the details.

 
Tyler Durden's picture

S&P 500 Drops Below 2,000





BTFD? The S&P 500 remains 50-60 points 'rich' to the Federal Reserve Balance Sheet.

 
Tyler Durden's picture

Meet The Person Who Will Determine If The Market Is "Fair





A week ago, we were surprised to learn that one of the most prominent critics of HFT, Joseph Stiglitz, had been barred from an SEC Panel that will "advise regulators on issues facing U.S. equity markets."  Today, a day after the SEC busted DirectEdge for failing to "accurately describe the order types being used on the exchanges" namely the infamous Hide not Slide, even after said order had repeatedly made the front page of the WSJ, the SEC finally announced the full list of members of the "New Equity Market Structure Advisory Committee" which will focus on the structure and operations of the U.S. equities markets. Alas most of the committee members are, sadly, placeholding figureheads. Because there is only one person on the list whose participation matters, and whose presence is not at all surprising...

 
Tyler Durden's picture

Biotech Bubble Record Means Yellen Capital Gets A Margin Call





"Don't fight The Fed" A mantra echoed loud and proud by America's asset-gatherers and commission-takers... except there is a caveat that is not often heard... "don't fight the fed... unless they say sell." Just six short months ago, Janet Yellen's Federal Reserve had their 'irrational exuberance' moment when they warned "valuation metrics in some sectors do appear substantially stretched—particularly those for smaller firms in the social media and biotechnology industries, despite a notable downturn in equity prices for such firms early in the year." Since then, despite a small dip (that was bought), Biotechs have soared to new record highs... up over 35% since her warning...

 
GoldCore's picture

Gold In Euros Up 7.2% In 2 Weeks – Surges Over EUR 1,050 Per Ounce





Gold has surged 7.2% already in January, outperforming gold in dollars which is up 4.8%, and building on the 12% gains seen in 2014. Market participants are increasing allocations to gold in order to hedge a ‘Grexit’ and risks posed by euro money printing.

 
Tyler Durden's picture

Did The Fed Ignite The "Irresponsibility" Of US Oil Over-Supply?





Saudi Arabian Oil Minister Ali Al Naimi has asked why he should be responsible for cutting output while U.A.E. Energy Minister Suhail Al-Mazrouei said non-OPEC producers should reduce "irresponsible" production. How can that be? How can American production be 'irresponsible' in the land of the free (money). Well, as the following chart from Bloomberg shows, perhaps OPEC members have a point...

 
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