• Sprott Money
    01/30/2015 - 08:31
    The quick-and-easy way to categorize the retail sector of the U.S. economy would be to use the metaphor of “falling off a cliff”. However, such a characterization would be overly simplistic. A...

Quantitative Easing

Tyler Durden's picture

BTFTripleD Algos Engage: Futures Rebound Following Third Japnese Recession





Perhaps the biggest shock following last night's completely expected and very predictable (previewed here over a month ago) Japanese slide into triple- (actually make that quadruple) dip recession, is that it took the BTFTripleDip recession algos as long as they did to recover most of the overnight futures losses. Because after surging to 107 on a confused short squeeze kneejerk reaction, the USDJPY subsequently tumbled 150 pips to 105.50 as rationality briefly emerged, and the market wondered for a few brief hours if rewaring the destruction of one's economy is actually a prudent thing. Then, however, when European traders started walking into work, the now default USDJPY levitation on no volume came right back, and with that the correlation algo buying of E-mini futures, no doubt helped by the Bank of Japan itself taking advantage of the CME's ES liquidity rebate program. Because without confidence as expressed by the lowest and only common denominator left - global equities - there is nothing else.

 
Tyler Durden's picture

Paul Craig Roberts: The Global Financial System Is "A House Of Cards Resting On Corruption"





Washington’s ability to rig markets has allowed Washington to keep its economic house of cards standing. The extent of financial corruption involving collusion between the mega-banks and the financial authorities is unfathomable. The Western financial system is a house of cards resting on corruption. Can it stand forever or are there so many rotted joints that some simultaneous collection of failures overwhelms the manipulation and brings on a massive crash? Time will tell.

 
Marc To Market's picture

What is on the Radar Screen in the Week Ahead?





If there were no puppet masters in Washington DC or the Kremlin, what would happen next week?  

 
Sprout Money's picture

Gold Wars: Putin’s Mining Buddies Are Stepping Up The Plate





Wondering where all the Russian gold is coming from? Stop looking and start reading...

 
Tyler Durden's picture

Stephen Roach Warns The Fed's Fixation With Markets Is "A Potentially Deadly Trap"





The Fed remains fixated on financial-market feedback – and thus ensnared in a potentially deadly trap. Fearful of market disruptions, the Fed has embraced a slow-motion exit from QE. By splitting hairs over the meaning of the words “considerable time” in describing the expected timeline for policy normalization, Fed Chair Janet Yellen is falling into the same trap. Such a fruitless debate borrows a page from the Bernanke-Greenspan incremental normalization script of 2004-2006. Sadly, we know all too well how that story ended.

 
Tyler Durden's picture

Things That Make You Go Hmmm... Like Japan's Inevitable Apocalypse





Kuroda has fired the shot that looks likely to trigger the next phase of the crazy monetary experiment we’ve all been living in for the last five years. Unfortunately, the next phase is where things start to get nasty. Just because equity markets cheered the latest sugar rush he guaranteed them should not make smart investors lower their guard — quite the opposite, in fact. Colonel Kuroda has gone up-country into the Heart of Darkness, and all we can do is await the Apocalypse now.

 
Tyler Durden's picture

Why The Rising U.S. Dollar Could Destabilize The Global Financial System





Simply put, the dollar's rise could destabilize the entire global financial system. To understand why this is so, we have to start with the source of the risk: the world's central banks.

 
Tyler Durden's picture

"Most Important Chart For Investors" Updated: Edwards Sees USDJPY 145 Next And "A Tidal Wave Of Deflation Westward"





What happens next? Here, straight from the horse's mouth that got the first part of the rapid Yen devaluation so right, is the answer. As Edwards updates with a note from this morning, "the yen is set to follow the US dollar DXY trade-weighted index by crashing through multi-decade resistance - around ¥120. It seems entirely plausible to me that once we break ¥120, we could see a very quick ¥25 move to ¥145, forcing commensurate devaluations across the whole Asian region and sending a tidal wave of deflation westwards."

 
Tyler Durden's picture

Abenomics Creates "Potential For Economic Collapse Triggered By Bond Market Crash", Warns Richard Koo





"Overseas views on the BOJ’s surprise easing announcement can be broken down into two camps: the reflationists, who commend the BOJ for its bold actions, and those critical of the policy, who say it is a symptom of the final stages of Japan’s economic decline. The critics can further be divided into two groups: those who believe that continuing the current policy of “Banzainomics” will lead to a collapse of the Japanese economy and government finance triggered by a crash in the JGB market, and those who worry that the ongoing devaluation of the yen under this policy will hurt their own countries’ industries.... The first group’s scenario, in which the BOJ’s reckless attempts to achieve a 2% inflation target trigger a bond market crash and an eventual collapse of the Japanese economy, is of greater concern. After all, it is the same scenario the world’s QE pioneers—the US and the UK—are desperately trying to avert at this very moment."

 
Sprott Money's picture

Ask The Expert Interview with Chris Martenson from Peak Prosperity





Chris Martenson is an economic researcher and futurist, specializing in energy and resource depletion, and co-founder of PeakProsperity.com. As one of the early econobloggers who forecasted the housing market collapse and stock market correction years in advance, Chris rose to prominence with the launch of his seminal video seminar, The Crash Course, that interconnected forces in the economy, energy, and the environment that are shaping the future, one that will be defined by increasing challenges as we have known it. Chris’s insights are in high demand by the media as well as academic, civic, and private organizations around the world, including institutions such as the U.N., the U.K. House of Commons, and the U.S. State Legislatures. So with that we’d like to welcome Mr. Chris

 
Tyler Durden's picture

Frontrunning: November 11





  • No Sign of Thaw in Obama’s Brief Encounters With Putin (BBG)
  • Japan Lawmakers Prepare for Snap Elections as Abe Mulls Tax (BBG)
  • Global stocks rise, Brent crude hits four-year low (Reuters)
  • U.S., China to Drop Tariffs on Range of Tech Products (WSJ)
  • ‘Too-Big-to-Fail’ Rule Would Raise Bar for Bank Capital (WSJ) ... and mean even bigger taxpayer bailouts
  • Pot in New York: $100 Ticket. No Charges. No Record. No Nothing (BBG)
  • Microsoft unveils first Lumia smartphone without Nokia name (Reuters)
  • Davos-Man Ackermann Lured to Cyprus Bank by Billionaires (BBG)
  • Alibaba, Apple Talks on Payments Tie-Up Focused on China (WSJ)
 
Tyler Durden's picture

Avoid This Accident Waiting To Happen In Investment Markets





Success in investing, in other words, comes not from over-reach, in straining to make the winning shot, but simply through the avoidance of easy errors. There is now a grave risk that an overzealous commitment to benchmarking is about to lead hundreds of billions of dollars of invested capital off a cliff. When a sufficient number of elephants start charging inelegantly towards the door, not all of them will make it through unscathed.

 
Tyler Durden's picture

October Was A "Trailer" For Real Market Turmoil, Don't Hold Your Breath For Policymakers





"When the next period [of real market turmoil] appears... there is a very real possibility that the (central banks and major governments) cavalry’s thundering hooves will cause investors to get even more frightened and run away, perhaps having lost confidence in the effectiveness of the central bankers’ toolkit..."

 
Tyler Durden's picture

Oil Price Slide – No Good Way Out





We often hear that if there is not enough oil at a given price, the situation will lead to substitution or to demand destruction. Because of the networked nature of the economy, this demand destruction comes about in a different way than most economists expect–it comes from fewer people having jobs with good wages. With lower wages, it also comes from less debt being available. We end up with a disparity between what consumers can afford to pay for oil, and the amount that it costs to extract the oil. This is the problem we are facing today, and it is a very difficult issue.

 
Syndicate content
Do NOT follow this link or you will be banned from the site!