Federal Reserve

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Asset Protection? Silver Has Held Its Value For 23 Centuries





How much do you think your paper currency will be worth 23 centuries from now? Or even 23 years? Or potentially even 23 months?

 
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Fed Hikes Rates, Unleashing First Tightening Cycle In Over 11 Years





In the end, the Fed did not surprise, and raised interest rates for the first time in almost a decade in a widely telegraphed move while signaling that the pace of subsequent increases will be “gradual” and in line with previous projections. The Federal Open Market Committee unanimously voted to set the new target range for the federal funds rate at 0.25 percent to 0.5 percent, up from zero to 0.25 percent.

 
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Presenting Saxo Bank's 10 "Outrageous Predictions" For 2016





"The irony in this year’s batch of outrageous predictions is that some of them are “outrageous” merely because they run counter to overwhelming market consensus. In fact, many would not look particularly outrageous at all in more “normal” times – if there even is such a thing!"

 
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On The Important Role Of Recessions - Austrians Had It Right





The continued misuse of capital and continued erroneous monetary policies have instigated not only the recent downturn but actually 30 years of an insidious slow moving infection that has destroyed the American legacy. “Recessions” should be embraced and utilized to clear the “excesses” that accrue in the economic system during the first half of the economic growth cycle. Trying to delay the inevitable, only makes the inevitable that much worse in the end.

 
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Sticker Shock: Fed to Hike Rates First Time in NINE Years!





China did everything it could to prevent a collapse and it still happened.  How do you think other countries will do?

 
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Fed Reveals Rate Hike "Plumbing" Details: Removes Cap On Reverse Repos, Limits Each Counterparty To $30 Billion





Perhaps even more important than the actual rate hike announcement, the one statement the market was particularly focused on was the Fed's "implementation note", which lays out the Fed's thought process on how it will actually raise rates in order to maintain the Fed Funds in the 0.25%-0.50% range. What it reveals is that in addition to removing the daily limit on aggregate borrowings through its overnight reverse repurchase facility, previously set at $300 billion (recall that according to Citi, the Fed may need to drain up to $1 trillion in excess liquidity to effect the 25 bps hike), it will have a per counterparty limit of $30 billion per day, which may or may not be enough.

 
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Fed Mouthpiece Reads Liftoff Tea Leaves





"When the Fed moves next will depend importantly on how inflation evolves. The Fed’s preferred measure of inflation has run below its 2% objective for more than three years. The central bank focused extra attention on the inflation outlook in its statement, saying it would “carefully monitor” actual and expected progress toward the goal. This point implied the Fed will be reluctant to raise rates again unless it sees inflation actually moving up. For now, officials said they were “reasonably confident” inflation would rise."

 
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How Traders Are Preparing For The Rate Hike: "It's A Good Time To Beat The Crap Out Of A Punchbag"





Summing up the anxiety ahead of today's Fed decision - which talking heads just this morning explained is "priced in" and is a "non-event... been so telegraphed" - market professionals believe "it seems a good time just to go and beat the crap out of a punchbag." As Bloomberg reports, real traders say they "just don't want to do any damage today," as they trade around the events, "I think we're going to see a lot of volatility," and Treasury risk is already spiking to 5-month highs.

 
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Grant Williams: The End Of The Road





Grant Williams sets the context for tomorrow's FOMC meeting, where the Federal Reserve is widely expected to hike interest rates for the first time in nearly a decade. To say he is very skeptical of the Fed's ability to continue to control market forces much longer is a gross understatement...

 
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Majority Of Millennials Have Under $1,000 In Savings





Millennials are projected to number 75.3 million for 2015, surpassing a projected 74.9 million for Baby Boomers for the first time. However, much like the Boomers, it appears savings habits of Millennials remains poor, as results of our survey found that over 50% of Millennials have less than $1,000 in savings... but then again why save when the government will take care of you, right?

 
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Which President Has Received The Most "Charity" From The Fed?





If you’re an observer of the political aspect of the Fed policy, you’re likely aware that central bankers like to stay out of the spotlight.  Spotlight creates political pressure, something Fed technocrats publicly dislike. But in connecting Federal Reserve interest rate policy since the 1950s with inflation and employment conditions, some interesting results materialize. Of the interesting findings is that the Fed has presidents it wants to be tough on and presidents it likes to show charity to.

 
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3 Charts The Fed Should Consider





With economic growth currently running at THE LOWEST average growth rate in American history, the time frame between the first rate and next recession will not be long. For investors, there is little “reward” in the current environment for taking on excess exposure to risk assets. The deteriorating junk bond market, declining profitability and weak economic underpinnings suggest that the clock has already begun ticking. The only question is how much time is left.

 
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The Fixed Income Bloodbath Continues: Wall Street Harbinger Jefferies Reports Another Terrible Bond Trading Quarter





Earlier today Jefferies reported another quarter in which its Fixed Income revenue could best be described as dismal: Fixed Income posted a nominal $8.4 million in revenue: a whopping 83% collapse from the already subdued $48.6 million a year ago.  The biggest irony is that while other banks are clamoring to be allowed to "prop trade" again, Jefferies which has had the green light to do just that as it never got an FDIC bailout and remains the only sizable pure-play investment bank, just got crushed precisely due to its junk bond prop trading.

 
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Government Influence Over Asset Prices Growing





Where most analysis on oil markets tends to fall short is on the depth of analysis vs. reading headlines and group think, the latter of which is heavily shaped by misinformed media and government propaganda.

 
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