Quantitative Easing

Why Economic Data No Longer Matters

"The relevance of data is declining. Policymakers around the world are trying to make crystal clear that they’ll ignore that which doesn’t fit their narrative. Many financial commentators have failed to make the transition and are incorrectly transfixed by each data release."

1987 Versus 2017: Will History Repeat Or Just Echo?

"...no single event can be blamed for the crash that occurred on October 19, 1987, rather a confluence of factors and events caused a rapid erosion in market confidence. The same can be said in 2017. No single factor indicates conclusively that a stock market correction is imminent, but the risks are out there and merit continued attention..."

Oh Canada - Reflections On An Economic Experiment

"...the real problem is with the Fed’s unwillingness to surprise markets. They are convinced that moves should be telegraphed well in advance.. the Fed is a slave to market expectations...Well, Bank of Canada Governor Poloz is willing to take the other side of this view. Arguing that in normal times, there is no need for such guidance..."

Goldman Interviews Former Head Of The Plunge Protection Team

"Purchasing a wider set of assets—as do some other central banks—might enable the Fed to have a larger effect on financial conditions and promote faster recoveries. But it would also involve putting more taxpayer money at risk and having an imprint on a wider set of risk premiums in the market."

The Most Important Paper Of The Next Decade

"Whenever I tell people the next big crisis will come from inflation, not deflation, the looks of disgust are worse than when someone says Justin Bieber’s music is not that bad... and I must admit, I have always had difficulty articulating how inflation would manifest... until now!"

Why One Trader Thinks Calls For A Yield Rebound Are Wrong

After the U.S. 10-year yield fell to just above 2%, what’s next? It’d be easy to say it should snap back to a range of 2.3% to 2.5%, especially after it jumped at Monday’s open. But that’d be too boring. That’s the consensus view. Here are the reasons the world benchmark for borrowing costs can drop below 2%.