Fisher

"How Does This Ever End?" An Interview With Lacy Hunt

"...our results will mirror Japan over time... They've tried to solve an indebtedness problem by taking on more debt... the secular low in long treasury bonds is not at hand.. [rates] are not going to be able to stay up. The economy is too fundamentally weak..."

Joe Lieberman "No Longer Being Considered" For FBI Director: Report

Just days after it was reported that the frontrunner to replace James Comey as head of the FBI was career democrat Joe Lieberman, it now appears that Trump has gotten cold feet about installing a career democrat as head of the agency and according to CNN the team tasked by Trump with finding a new director for the FBI "is resetting its search" with Reuters reporting that according to CNN, Joe Lieberman is "no longer being considered for FBI director."

Republicans, Democrats Insist Trump Turn Over Any Comey Tapes

Even as the White House refused to comment on whether Trump had recorded any of his conversations with former FBI director James Comey, over the weekend, lawmakers on both sides of the aisle called on President Trump to turn over any tapes of conversations with Comey, setting up a potential showdown with the White House as Democrats considered a boycott of the vote on Comey's replacement.

Central Banks' Obsession With Price Stability Leads To Economic Instability

The Fed’s monetary policy that aims at stabilizing the price level by implication affects the rate of growth of money supply. Since changes in money supply are not neutral, this means that a central bank policy amounts to the tampering with relative prices, which leads to the disruption of the efficient allocation of resources.

Eric Peters: If Rates Ever Rise Above 3.5% "It Would Spark Massive Defaults"

"if we tested the Fisher Model by raising interest rates meaningfully, we’d spark massive defaults. Unemployment would jump dramatically. In the 30yrs since Greenspan became Fed Chairman, borrowers have learned this lesson and responded by leveraging up. And that’s why US interest rates will never rise sustainably above 3.5%."

Deutsche Bank: "It Was Good While It Lasted"

"It Was Good While It Lasted: Sit back, relax, the bear market in bonds may be over. It would not be unreasonable to expect at least a 50 bps decline from peak to trough in G3 yields following a peak in yield momentum."

The Fed Still Has On Its Beer Goggles

"The danger with these econometricians is they don’t know their own limitations, and they have a far greater sense of confidence in their analyses than I have found to be warranted... They are, however, dangerous to people like you and the politicians because you don’t know their limitations, and you are impressed and confused by the elaborate models and mathematics."

Knave Dave's picture

After years of trying to create a "wealth effect", the Federal Reserve is slowly dialing down its special-effects machine. Yet, this week, the stock market provided dot-com-era proof of completely iirrational exuberance -- the kind of stupid stuff that happens when cheap money follows free money.

Is The Fed's Balance Sheet Headed For The Crapper?

It’s no secret the plumbers at the Fed are feverishly devising a way to unwind their $4.5 trillion balance sheet with officials claiming this will nary elicit an inkling of a disturbance in the markets they’ve coddled all these years. But one must wonder, at the timing, at the ostensive optics, if nothing else...Unless, that is, the motivations of shrinkage are less than magnanimous and dare one say, immoral.

Ben Hunt's Mailbag - Life In Trumpland

"I wrote this note because I am so effin’ tired of being called a racist or a sexist because I don’t think that Donald Trump is evil incarnate... I think Trump is a narcissist and an ass, not a Fascist. Like most people in the financial services world, I deal with narcissists and asses every day … they’re not Hitler clones because the only thing they’re really true-believers about is their own self-aggrandizement."