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It appears the Central Bank control is failing...
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NOOOO!!!!! It's a RECOVERY!!!!!!!!
The DAX is the new DOW - BTFATH !
EU QE anounced, not yet implemented. I would expect pressure until they start printing. Starting in March I think.
At least BDI isn't at 666 anymore....it only dropped another 5% to 632
632, the number of idiot central banker
the stack of ship shipping ships keeps getting higher
… they’re gonna have to invent a
“ship shipping ships” ship !
6+3+2=11 Aha! An other occult number ;)
noooooooooobody saw this coming.
US equities haven't been able to grow a single percent over a quarter for over six years without QE. Think about that for a second
No time to think about that. Deflated balls were used for a playoff game and all that.
if you aren't cheating you aren't trying
The next Federal Reserve QE is almost a certainty. This time the QE will be larger. More printing.
It's QE and negative rates until something blows up. Eventually a default occurs either way.
get to work Mr. Yellen
QE was the "pacemaker" that kept the illusion going till the mechanism of societal control was completed.
As a ratio of "Prices/FiatMoneyCreated" , it is worse still.
Bullish
The 2015 word of the year - FAIL
Just a "mild correction". The boomers are happy again, but I guess the question is will they start buying any and all U.S. paper again? Why is that important you ask? Well, because the Fed claims that they will "normalize their balance sheet".
good luck with that....
http://research.stlouisfed.org/fred2/graph/?id=WALCL
Yellen: It hasn't worked because we didn't print enough.
The NYSE just broke below 5 year support at the same time the S&P rolling over. Look out below!
http://www.goldsqueeze.com/analysis/sp-500-breaks-down-nyse-rolls-over
But they keep telling me on CNBS that the market's performance has nothing to do with central-bank intervention.
I almost wish it were all scripted, but I get the feeling more, and more, that they really are truly stupid.
http://www.telegraph.co.uk/finance/economics/11358316/Central-bank-prophet-fears-QE-warfare-pushing-world-financial-system-out-of-control.html
Mr. William White said Quantitative Easing (QE) is a disguised form of competitive devaluation. "The Japanese are now doing it as well but nobody can complain because the US started it," he said.
"There is a significant risk that this is going to end badly because the Bank of Japan is funding 40pc of all government spending. This could end in high inflation, perhaps even hyperinflation.
"The emerging markets got on the bandwagon by resisting upward pressure on their currencies and building up enormous foreign exchange reserves. The wrinkle this time is that corporations in these countries - especially in Asia and Latin America - have borrowed $6 trillion in US dollars, often through offshore centres. That is going to create a huge currency mismatch problem as US rates rise and the dollar goes back up."
Mr. White's warnings are ominous. He acquired great authority in his long years at the BIS arguing that global central banks were falling into a trap by holding real rates too low in the 1990s, effectively stealing growth from the future through "intertemporal" effects.
He argues that this created a treacherous dynamic. The authorities kept having to push rates lower with the trough of each cycle, building up ever greater imbalances, in an ineluctable descent to the "zero bound", where monetary levers stop working properly.
Under his guidance, the BIS annual reports over the three years before the Lehman crisis were a rising crescendo of alarm calls at a time when other global watchdogs were asleep. His legendary report in June 2008 openly discussed whether the world was on the cusp of events that might prove as dangerous and intractable as the Great Depression, as it indeed it was.
Mr White said central banks have been put in an invidious position, compelled to respond to a deep economic disorder that is beyond their power. The latest victim is the Swiss National Bank, which was effectively crushed last week by greater global forces as it tried to repel safe-haven flows into the franc. The SNB was damned whatever it tried to do. "The only choice they had was to take a blow to the left cheek, or to the right cheek," he said.
He deplores the rush to QE as an "unthinking fashion". Those who argue that the US and the UK are growing faster than Europe because they carried out QE early are confusing "correlation with causality". The Anglo-Saxon pioneers have yet to pay the price. "It ain't over until the fat lady sings. There are serious side-effects building up and we don't know what will happen when they try to reverse what they have done."
The painful irony is that central banks may have brought about exactly what they most feared by trying to keep growth buoyant at all costs, he argues, and not allowing productivity gains to drive down prices gently as occurred in episodes of the 19th century. "They have created so much debt that they may have turned a good deflation into a bad deflation after all."
I guess it already failed four times then because according to that chart this isn't the first time. In fact, everytime it happens this headline is bleated out.
Those were just the sequential QEs. At some point we'll get to exponential QEs. You know, so they can print while they print.
Tylers, can we get an up-to-date chart of Fed Assets overlaid on the S&P?
Central Banks are in a perpetual damage control state.
No rule 48 today for Silver, huh? Down almost 5%
What about that collar they put on it? Oh yeah, it's for restraint on the upside.
Nope, no rule 48 for antiquated, long ago traditions.
http://www.project-syndicate.org/commentary/eurozone-needs-more-than-qe-by-martin-feldstein-2015-01
First, though, consider why QE’s ability to stimulate growth and employment in the US does not imply that it will succeed in the eurozone. QE’s effect on demand in the US reflected the financial-market conditions that prevailed when the Federal Reserve began its large-scale asset purchases in 2008. At that time, the interest rate on ten-year Treasury bonds was close to 4%. The Fed’s aggressive program of bond-buying and its commitment to keep short-term interest rates low for a prolonged period drove the long-term rate down to about 1.5%.
The sharp fall in long-term rates induced investors to buy equities, driving up share prices. Low mortgage interest rates also spurred a recovery in house prices. In 2013, the broad Standard and Poor’s index of equity prices rose by 30%. The combination of higher equity and house prices raised households’ net worth in 2013 by $10 trillion, equivalent to about 60% of that year’s GDP.
That, in turn, led to a rise in consumer spending, prompting businesses to increase production and hiring, which meant more incomes and therefore even more consumer spending. As a result, real (inflation-adjusted) GDP growth accelerated to 4% in the second half of 2013. After a weather-related pause in the first quarter of 2014, GDP continued to grow at an annual rate of more than 4%.
Thus, QE’s success in the US reflected the Fed’s ability to drive down long-term interest rates. In contrast, long-term interest rates in the eurozone are already extremely low, with ten-year bond rates at about 50 basis points in Germany and France and only 150 basis points in Italy and Spain.
So the key mechanism that worked in the US will not work in the eurozone. Driving down the euro’s dollar exchange rate from its $1.15 level (where it was before the adoption of QE) to parity or even lower will help, but it probably will not be enough.
QE is dead! All hail the new QE!