Quantitative Easing

ECB Warns Of "Excessive Exuberance" In House Prices; Sees Financial Instability Due To Higher Yields

In an unexpected two-part warning from the ECB, the European Central Bank warned of “excessive exuberance” in some European housing markets, driven by offshore buyers, that could spread to other areas in a “ripple effect.” Separately, the ECB also said "debt-sustainability concerns" have risen in the past six months amid a potential increase in yields and political uncertainty in some countries.

A Bearish Positive Carry Trade?

The Eurostoxx outperformance of the past month has garnered a lot of attention, but there is another similar trade many investors are missing. Not only that, but it has a positive carry, something that is sorely lacking in this day and age of NIRP.

Cyber Attacks Are The Perfect Trigger For A Stock Market Crash

"The NSA and its Silicon Valley partners literally created this monster; a monster which has the capacity to attack otherwise secure banking networks like SWIFT. This begs the question - how much of the global banking system and global stock exchanges are open to attack with these same NSA exploits. I would suggest that ALL of them are."

What Is The Buffet Indicator Saying About Gold?

The monetary experiment led by the world’s major central banks by way of quantitative easing has done much to inflate asset prices since the global financial crisis, and at this point having an allocation in gold appears very sensible.

George Orwell's Monetary Policy

"Tightening is easing..." Monetary policy is a black box and former Fed chair, Alan Greenspan, acknowledged this more than 20 years ago...

Is Risk Parity Driving The Market?

"The risk in the market is not to increasing volatility but something that changes the relationship to stocks and bonds that causes them to both drop..."

How To Stick It To Your Banker, The Fed, & The Whole Doggone Fiat Money System

Through his insane quantitative easing policies Bernanke inflated the Fed’s balance sheet from under $1 trillion to over $4.5 trillion. In Bernanke’s mind, this was his great courageous act. We’ve all been living with the results of his courage – low growth, low bond yields, high debt, inflated asset prices, stagnant wages, currency erosion, and more – for nearly a decade.  Quite frankly, it stinks. What can you do about it?

Japanese Wages Fall At Fastest Pace In 2 Years; Kuroda Admits His Job Is "Challenging"

Buying stocks, bonds, and generally printing money willy-nilly is hard work according to BoJ Governor Kuroda who remarked tonight that "the job of a central banker is challenging." Perhaps the reason for his emotional outburst is the fact that Japanese wages just plunged in March - the biggest drop since June 2015 as the economic rebound that we are constantly told about has evaporated once again.

Sell Euros - It's That Time Of Year Again

"The Euro has a strong seasonality pattern to decline in the month of May. Right now with Macron exuberance filling the air, the Euro is bid. Yet I am not optimistic that the current Euro rally will accelerate. I suspect it was merely a short covering rally on news that Le Pen did not sweep into power."

Fasanara Capital Explains How The "Fake Market" Works In One Chart

"‘Fake Markets’ are defined as markets where the magnitude and duration of artificial flows from global Central Banks or passive investment vehicles have managed to overwhelm and narcotize data-dependency and macro factors. A stuporous state of durable, un-volatile over-valuation, arrested activity, unconsciousness produced by the influence of artificial money flows... The higher it goes, the higher it can go, as more swathes of private investors are pulled in. The more violently it can subsequently bust."

Breslow: Traders Increasingly Have No Idea What's Going On

"Fewer and fewer market participants are comfortable answering the question, “What’s going on?”  A lot of this is from the much-discussed volatility suppression caused by central banks. They got what they wanted and now the negative externalities they failed to appreciate are dangerously affecting accurate price discovery. When we need it most."