Federal Reserve

Banks Are Becoming Less Safe... Again

"...a safe, conservative bank maintains high levels of cash, especially relative to the total amount of deposits. But that’s not happening in the Land of the Free...  cash is falling while deposits are increasing. This is the OPPOSITE of what a responsible bank should be doing."

What Trump Told Yellen In The Oval Office (Next To Gary Cohn)

Weeks after his inauguration, President Trump held court with Fed Chairwoman Janet Yellen in the Oval Office. Seated behind the office’s Resolute desk, he told her she was doing a good job, the WSJ reports, and adds that  "the president told Ms. Yellen he considered her, like himself, a “low-interest-rate” person."

Frontrunning: June 13

  • The Snowballing Power of the VIX, Wall Street’s Fear Index (WSJ)
  • Beneath the Uneasy Peace Between Donald Trump and Janet Yellen (WSJ)
  • Senators to Query Sessions on Russia, Comey (BBG)
  • U.S. lawmakers to probe Tillerson on Russia, diplomacy budget cuts (Reuters)
  • Under pressure to soften Brexit, PM May to meet Northern Irish 'kingmakers' (Reuters)

Global Markets Rebound As Tech Rout Ends; Sterling Rises

As the Fed begins its two-day meeting, global stocks have recovered their footing and European shares rise, led by a bounce in tech stocks as last Friday's global selloff that started in the sector shows signs of abating. Asian stocks and U.S. futures gain as investors turn their attention to today's Jeff Sessions testimony as well as tomorrow's barrage of macro data including Yellen, CPI and retail sales.

"The Crowd Is Always Wrong" Jack Bogle Says, Urging To Invest At All Time Highs

"I believe the U.S. is the best place to invest.  Every single person I think I have ever talked to tells me I am wrong in this.  If you believe in the majority, you can just throw my opinion in the waste basket. But on the other hand, I was brought up in this business and I am saying ‘the crowd is always wrong.’"

Falling Interest Rates Have Postponed "Peak Oil"

"The new crisis can be expected to be 'Peak Economy' instead of Peak Oil. Peak Economy is likely to have a far different shape than Peak Oil - a much sharper downturn. It is likely to affect many aspects of the economy at once. The financial system will be especially affected. "

Steen Jakobsen: 60% Probability Of Recession In The Next 18 Months

"The 'credit impulse' -- defined as net new credit to GDP -- has gone negative in the world for the first time since the start of the Great Recession...the most likely period for [the recession] to happen would be end of this year because, of course, Trump has not delivered."

Animal Spirits Are A Late-Stage Event

“While the temptations are great, and the pressures strong, illusions in numbers are only that - ephemeral, and ultimately self-destructive.

"Tech Wreck" Goes Global Dragging Worldwide Markets Lower; Cable, USDJPY Slide

Following Friday's "tech wreck" European equity markets have opened lower, with the Stoxx 600 sliding back under the 50DMA for the first time since December, mirroring Asian markets as Friday’s "FAAMG" volatility in U.S. markets spreads globally. European banks lag as the Spanish regulator stepped in to prevent another bank collapse, this time of LiberBank which we profiled yesterday, by banning short-selling in the regional commercial bank to mitigate Popular-related contagion.