This page has been archived and commenting is disabled.
"Short-Term Greedy & Long-Term Poorer"
In what Bloomberg's Richard Breslow calls "a sign of the times, and not a good one" the weekend has been dominated by politicians commenting on the ECB. Not only did Erdogan un-independently suggest Turkish policy action today (as we noted here), but now Merkel, Hollande, Noonan etc. are all telling you what the ECB should do or indeed will do and then telling you that, of course, the ECB is independent. Central Banks have
essentially become enormous sovereign wealth funds manipulating the
markets and very much in the thrall of geo-political events. This is a very problematic development which is an inevitable follow-on to the activism of central banks in their policy conduct.
Via Bloomberg's Trader's Notes,
Interesting weekend, as you look at the big picture, with the fallout from the SNB and the lead-up to the ECB. Winners and losers galore and one has to wonder why those who didn’t take the three years of the CHF cap to hedge their exposures made such poor decisions -- short-term greedy and long-term poorer, Bloomberg’s Richard Breslow writes.
Here’s what you see: Another round of rate cuts (DKR, TRY), Russia getting downgraded, IMF slashing world economic outlook, people in Austria wishing they were Hungarians after tallying up what they owe on their CHF mortgages,and China GDP okay but signaling further easing needed.
More importantly and very much a sign of the times, though not a good one, everyone has been commenting on the ECB, including Merkel, Hollande, Noonan etc., all telling you what the ECB should do or indeed will do and then telling you that, of course, the ECB is independent; this is a very problematic development which is an inevitable follow-on to the activism of central banks in their policy conduct
[Central Banks] have essentially become enormous sovereign wealth funds manipulating the markets and very much in the thrall of geo-political events; they have turned their single or double mandates into multi-factor models causing investors as well as themselves endless confusion
Keep an eye on this development; we make a lot of hay over people like Erdogan messing with Turkey’s central bank; we are seeing the same phenomenon playing out live in Europe
* * *
- 7826 reads
- Printer-friendly version
- Send to friend
- advertisements -


Best new business idea.....providing "Presidential" Golf Balls and Cufflinks for the Elite.
"we make a lot of hay over people like Erdogan messing with Turkey’s central bank; we are seeing the same phenomenon playing out live in Europe"
from the horses mouth...
go long hay.
short Erdogan.
I have a feeling Carlin would be an amazing president. I think he would get serious if the responsibility was given to him. look at Al Frankin, he has become a solid leader.
Clearly the CBs aren't independant. But I don't think the realization matters at all.
central banks and politicians are both controlled by the maggots
a terrible simplification, this "all central banks are the same". some of them are exceptional
We crossed that point a while ago. When CBs started buying stocks that was a dead give-away. Why would a CB, whose only job is to regulate the money supply need to "diversify into other asset classes"? What possible reason could there be for doing something like this unless your intention was to build, as the article correctly states, a sovereign wealth fund?
the reason is simple: currency wars. and since it involves pushing your currency down, you have to think ahead about the future when you need to... brake
and since you-know-who does not want gold to be used... "stawks" are the next asset in line, after sovereign bonds
so no, this "sovereign wealth fund" theory is wacky, imho
central banks are insurance for billionaires and bankers. they guarantee that asset prices rise forever. amen.
Cant believe i have to read this shit day in day out for years on end and then people still have the audacity to tell me that Bitcoin with its built in predicatable/unmanipulable monetary system is somehow the crazy currency?
"As an unregulated currency, Bitcoin appeared to be a natural fit for the illicit drug market. But while Bitcoin is anonymous, it isn't untraceable. When users convert bitcoins to hard currency, their name becomes linked to a "public blockchain" that comprises the entire transactional history of the bitcoin. This would be equivalent to a $20 bill containing a comprehensive history of every person who has touched it since emerging from the printing press. These public blockchains make it very easy for law enforcement officials, once users' identities are compromised, to understand the full extent of their illicit activity."
http://www.theatlantic.com/technology/archive/2015/01/without-drugs-what...
"It was an accident" - Yellen
"It was an accident" - Bernanke
"It was an accident" - Greenspan
It was not an accident.
this is how capitalism reverts to communism.
Yes, but a much accelerated pace. I don't think it will be too long before Texas does it's own thing. It kind of is already amigo.
' Alea iacta est "
Suetonius , 49 BC
this is how capitalism reverts to communism.
fascism, is what I think you meant as corporate dominance doesn't occur under communism but does under fascism.......and we're already there if you were asleep for the last 10 years
it's it funny how the success of capitalism pushes toward communism and how the failure of communism moves toward capitalism. russia and china will have a gold standard and the west decided it did not need it. gold is greed tied to limitation of earth. the view that gold is not needed is greed beyond the limits of earth. there is no right answer to anything. a shift in perspective can always validate or invalidate a judgement. observing without judgement can give you a glims of reality. amazing how far humans have gotten away from reality.
Are we really better off then when we were just hunting and gathering without fixed capital and the promise of better in the future. most people are not alive to day. I look into the eyes of most people and I see them hiding in their addictions ( food, work, church, drugs, knowledge, fame ). The ones that are alive and have awoke from their endless search for better have realized the heaven you seek is to not seek. and in not seeking you are truely appeciating what is already here and can never go away. be free, a banker can not control your perspective, complaining ( different than critique) gives up your power to shift your focus. you changing is the best you can do for all. I realized that spending 7k a month to upgrade my life was playing into greed in myself and helping the foster greed in others. I have over the last seven yrs reduced my monthy budget to $500. I have reduced how I was feeding the machine as a way to gain perspective and I am much happier spending $500 than I did 7K a month, I dont miss the international travel, the custom cars, parting the beautiful people in hollywood. instead I surf and go to parks and enjoy peace. the only thing my ego misses is the call girls, but that voice is the last hold out and is fading away as well. life is funny, just gotta laugh.
They learned from the best...Get to work Mr. Chairman.
What is this obvious day? Don't overthink any of this, get long guillotines and beat the rush.
Theft, something progressives do almost as well as murder.
Not one constitutional conservative in the FED or any other CB. All progressive thieves. Jon Corzine, "Turbo Tax" Tim Geithner, Jack Lew type criminal progressives.
Grimaldus
interesting, I wonder if a majority of them also belong to a certain religion? Where is the progressive "affirmative action" warrior in this case?
Humanism is the religion of those thieves who propigate this theft. There are no moral absolutes, so stealing, lying, and whatever else it takes are all OK to the Humanist
It came home to me when Bernanke announced QE2 two weeks before the Presidential election, thereby nullifying (in the public mind) the need for Romney's financial experience and platform. The Fed is a tool of the left.
That angle is so intricate I believe you were trying to make a statement instead of an analysis. Voters mulling over those two dont combine the FED into the same thought process. The FED runs the show, no matter which puppet is headlining.
If the markets fail to explode higher on more QE. If that day is really here, that the end of faith in the central bankers omnipotence, has arrived. If deflation sticks and the Fed is pushing on a string. If the Japan scenario is the only scenario for those that took the red pill, then finally, the party ends and the bears will take over for a very long time. Lousy earnings which can no longer be engineered higher with loose money share buybacks, will bring the markets down fast once Faith in Fed evaporates. The bankers will not just throw in the towel, the politicians will not allow that. But, this is all about psychology, fear and greed. Once the fear of losing those trillions the Fed has handed out takes hold, it will turn ugly fast. Shorts have been destroyed, so the markets will have no support other than direct Fed intervention through asset purchases. Still watching from a safe distance for now.
Paul Schulte, Schulte Research says Europe has no liquidity in countries like Italy, Spain, France... and has bad corporation problems with bad assets.
The tendency is to have questionable value on derivatives and questionable value on Assets.
Christine Laguarde and Angela Merkel are not doing their Jobs.
Report Cards for Banks were a sham, no one wanted to look at the too big corporations & Banks.
What is a shit rope?