Quantitative Easing

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."

Japan Begins QE Tapering: BOJ Hints It May Purchase 18% Less Bonds Than Planned

Japan appears to have quietly commenced its own monteary tightening because, as Bloomberg calculates looking at the BOJ's latest bond-purchase plan, the central bank is on track to miss an annual target, by a substantial margin, prompting investor concerns that the BOJ has commenced its own "stealth tapering."

The Questionable State & Abusive Use Of Economics – Part 1

"...the tragedy is that, on the contrary, we are already suffering the long-run consequences of the policies of the remote or recent past. Today is already the tomorrow which the bad economist yesterday urged us to ignore."

The Beginning Of The End Of Calm Bond Markets

Although the market is convinced the Federal Reserve will get aggressive with their rate hikes, I am not sure market participants have thought this through. Let’s not forget the Federal Reserve is sitting on the largest balance sheet in history.

Bundesbank Prepares For Record Losses Once ECB Starts Hiking Rates

Germany's central bank reported its smallest profit in more than a decade in 2016 after setting aside a record amount of provisions against future losses on the bonds it is buying as part of the ECB's stimulus programme, its annual report showed on Thursday. "It is fair to ask ... when we can take our foot off the monetary policy pedal," Bundesbank President Jens Weidmann said.