Federal Reserve

Tyler Durden's picture

The Last Two Times This Happened, Stocks Crashed





According to Tobin's Q, which compares stock prices to the replacement value of companies' underlying assets, equity markets have become detached from reality to a degree only witnessed on two occasions in history: the tech bubble and 1929. 

 
Tyler Durden's picture

The San Francisco Fed Just Gave A Green Light For A June Rate Hike





The punchline from the most recent San Fran Fed "research" paper is that since Glenn "double seasonal adjustment" Rudebusch is one of Yellen's favorite hometown economists, she now has the green light to completely ignore the weakest economic print since last Q1, and to focus entirely on the best economic print in the US: the surge in part-time senior citizen workers, pardon, the "zero slack" unemployment rate of 5.4%. She also has the justification why to ignore it: the bad data wasn't seasonally adjusted enough (the good data was seasonally-adjusted just right).

 
Phoenix Capital Research's picture

Why Central Banks HATE Cash and Will Begin to Tax It Shortly





As far as the Central Banks are concerned, this is a good thing because if investors/depositors were ever to try and convert even a small portion of this “wealth” into actual physical bills, the system would implode (there simply is not enough actual cash).

 
 
Phoenix Capital Research's picture

Gold is Breaking Out Against the Euro and Yen… is the US Dollar Next?





The Greek mess has lit a fire under Gold again, which appears to have bottomed in both the Euro (blue) and the Japanese Yen (red). The one exception is Gold priced in US Dollars mainly because the US Dollar has been so strong for much of the last 9 months.

 
 
Gold Standard Institute's picture

Falling Yield, Rising Asset





There's little interest, forcing retirees to spend down their principal. It's no accident, as Keynes called for the “euthanasia of the rentier.” Fed Chair Yellen is a New Keynesian.

 
Tyler Durden's picture

Jim Rogers On The Coming Water Wars





"Water is one of the great opportunities of our times. If you look at the world there are some huge shortages developing in some parts but there is also a lot of water in other parts, just in the wrong place – like water in Siberia for instance, which is not where most people are. There are going to be wars in the Middle East over oil east of the Red Sea, but west of that there will be wars over water since there are serious water problems in that region." Jim Rogers:

 
Tyler Durden's picture

How China Covered The World In "Liquidity Swap Lines"





Central bank liquidity lines like those the Fed used to bailout the world seven years ago have become a fixture of the post crisis financial system. Since 2009, China has essentially blanketed the globe with yuan liquidity lines, inking swap agreements with nearly three dozen countries with the primary goal of increasing the degree to which the renminbi is used in international trade.

 
Tyler Durden's picture

If Numbers Don’t Lie Then...





There’s an old saying that “numbers don’t lie.” However, when we apply simple common sense to the way we hear numbers spun across the financial media what doesn’t add up is precisely that: the numbers.

 
Tyler Durden's picture

Martin Armstrong Warns Of The Coming Crash Of All Crashes





Why are governments rushing to eliminate cash? Simply put, the central banks have lost control of the ability to stimulate anything.

 
Tyler Durden's picture

Bubble In Higher Education: When Will It Pop?





Many factors combined to make it the perfect storm: the demographic rise of the millennials, easy money from the Fed, the “Chivas Regal” effect in pricing strategy that many colleges and universities adopted, and the US government virtually taking over the market for student loans. It’s a vicious circle as colleges raise prices, students take out easy loans, and the institutions raise prices again. However, it all seems to be coming to a head as several factors begin to show the chinks in the armor.

 
Phoenix Capital Research's picture

A Healthy Financial System Cannot be Built on Fraud





Fraud is endemic in the financial system today. We know that the currency, stock, bond, and even commodity markets have ALL been manipulated by Investment Banks or Central Banks.

 
Tyler Durden's picture

5 Things To Ponder: Reading While Waiting List





"To critics who warn that pumping trillions of dollars into the economy in a short period is bound to drive up inflation, today's central bankers point to stagnant consumer prices and say, 'Look, Ma, no inflation.' But this ignores the fact that when money is nominally free, strange things happen, and today record-low rates are fueling an unprecedented bout of inflation across asset prices."

 
Tyler Durden's picture

US Farmers In "Dire Straits": JPM Warns Of Imminent Liquidity Crunch





Despite the government's 'advice' to young debt-laden students, the tragedy of the American farmer continues with worryingly pessimistic views on the future of the industry. With farmland prices falling for the first time in almost 30 years, credit conditions are weakening dramatically and the Kansas City Fed warns that persistently low crop prices and high input costs reduced profit margins and increased concerns about future loan repayment capacity, and JPMorgan concludes, the industry is currently in dire straits with the potential for a liquidity crunch for farmers into 2016.

 
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