Federal Reserve

Risk-Ignorance Reaches 23 Year High As Short Interest Hits Record Low

Investors are willing to pay more for a given level of risk than at any time since 1994 and short interest has collapsed to record lows... "if The Fed follows through on its convictions, look for a flat yield curve and a recession to wipe out 50% of equity prices for the third time in the past seventeen years."

Raising Interest Rates Can't End Well

"The economy looks to me like a type of Ponzi Scheme. It depends on both rising energy consumption and rising debt. Judging from the problems we are having now, it seems to be reaching its limit in the near term. Raising interest rates will tend to push it even further toward its limit, or over the limit. The world economy is operating at too close to 'stall speed'. The financial system is too fragile."

The Four Corners Of American Politics

It is clear by now that we have four corners of American politics these days: the utterly lost and delusional Democratic party; the feckless Republicans; the permanent Deep State of bureaucratic foot-soldiers and errand boys; and Trump, with his promise to bigly re-greatify this suffering land.

Reggie Middleton's picture

The Winkelvoss Bitcoin ETF just might be salvageable. There were some fairly egregious misconceptions and dated understandings in the SEC's reasoning to reject the application. I can show those who are interested how to construct a stronger application that overcomes the objections. The demand is there, we just need to get the vehicle correct.

Gary Cohn: "The Fed Is Doing A Good Job"; Trump "Respects The Powers Of The Fed"

"The Federal Reserve is an independent agency and they operate as such. They have their economic data, which they look at and they are trying to always modulate economic growth with inflation, with the work force. I think the Federal Reserve has been doing a good job in doing that. The Fed will do what they need to do. And we respect the powers of the Fed." - Gary Cohn

When This All Blows Up...

"And so here we find ourselves, at the final torturous, grinding part where the final bubble top is formed. The über-bubble. The Greatest Of Them All..."

"The Fed Is Holding A Hand Grenade In The USA Bunker"

"Troubles and portents of more trouble are stacking up as we approach the Ides of March zone of financial turmoil. You must surely surmise that a debt ceiling impact, a Federal Reserve interest rate hike, and the election of a Dutch anti-EU leader all scheduled for that one day are a good start on the greater unravel to follow."

What The Hell Is Going On? - Part 3

"I’ve tried my best to seek truth, reveal government deception, and generally be a thorn in the side of the establishment. Based on Mencken’s definition, I’m a dangerous man to the government, who has spread discontent among those capable of thinking things out for themselves. You may not realize it, but the war has already begun. No matter what the hell is going on, I sure hope the good guys win."

Yellen: "Our Brand Is Crisis"

While rising interest rates may not “initially” impact asset prices, it is a far different story to suggest that they won’t. In fact, there have been absolutely ZERO times in history that the Federal Reserve has begun an interest rate hiking campaign that has not eventually led to a negative outcome.

It Took $4 In New Debt To Create $1 In GDP

The US closed 2016 with 18.86 trillion in GDP, an increase of $632 billion from 2015; the question is how much credit had to be created to generate this growth. The answer: $2.511 trillion. This means that in 2016, it "cost" $4 in new debt to generate just $1 in new economic growth.