Free Money

Tyler Durden's picture

Stocks And The Fundamental Backdrop: The New Strategy Is "Hope"

When Will Bad News Cease to be Good News for Stocks? It is quite amazing to watch this. Even as one economic datum after another indicates that a major slowdown is underway that could well turn into a recession (keep in mind that this is not a certainty – at similar junctures in recent years, aggregate economic data recovered just in the nick of time), the US stock market continues to take everything in stride. The longevity, intensity and persistence of a bubble is per se not proof that it will inevitably continue – it is only an indication of the likely amount of pain the market will eventually dispense.

Tyler Durden's picture

The U.S. Economy Slows To Stall Speed

This long-term weakening of the economy is the direct result of financialization and the Federal Reserve's policy of propping up impaired debt with more debt and constantly bringing demand forward with zero interest rates.  The U.S. economy is slowing to stall speed--the point when gravity overcomes the lift provided by central bank free money. This deceleration is evident in a number of indicators such as gross domestic product (GDP), which is now at 0% according to the Federal Reserve Bank of Atlanta's GDPNow model.

Tyler Durden's picture

How The Fed Has Failed The Nation (In One Chart)

There is only one way to end the financial tyranny of the Federal Reserve--abolish it, and put an end to the predatory pathologies of its policies...

Tyler Durden's picture

Frontrunning: March 31

  • Iran, powers push for nuclear deal as clock ticks toward deadline (Reuters)
  • How DIY Bond Traders Displaced Wall Street’s Hot Shots (BBG)
  • MillerCoors Caught in a Downdraft (WSJ)
  • Saudi-led strikes again hit Yemen overnight (Reuters)
  • Even With Free Money, Merkel Still Reluctant to Spend (BBG)
  • Britain Uses Tax Breaks to Lure Digital-Game Developers (WSJ)
  • China to Insure Deposits in Move Toward Scrapping Rate Curbs (BBG)
  • As China Expands Its Navy, the U.S. Grows Wary (WSJ)
Tyler Durden's picture

Introducing The "Overseas Contingency Operations Account" – Washington's Crony Capitalist War Slush Fund

The imperial spiral into the stratosphere of stupidity is well underway. With zero accountability for those in power, there’s no way to realistically stop it before crash and burn. The best we can hope is to bring the responsible to justice afterward and pick up the pieces by going back to the Constitution.

Tyler Durden's picture

Thank You, Fed - Warren And Jorge Are Thrilled By Another Play Day In The Casino

So what has transpired is another day and another play in the casino. This ketchup and mac merger could not be more emblematic of how the Fed’s destruction of honest financial markets has fatally deformed American capitalism. Warren and Jorge are understandably singing Janet’s praise. Everyone else should be getting out the torches and pitchforks.

Tyler Durden's picture

The Financial Folly Lurking Beneath Yellen’s Patient Lack Of Impatience

Janet’s Yellen’s pettifogging today about her patient lack of impatience was downright pathetic. Her verbal hair-splitting is starting to make medieval ritual incantations sound coherent by comparison. But unlike the financial media’s dopey dithering about “dot plots”, Yellen at least has something to hide behind all the gibberish. Namely, she and her merry band of money printers are becoming more petrified each month that they will trigger a thundering Wall Street hissy fit if they move to “normalize” interest rates - even as they are slowly beginning to realize that continuance of ZIRP much longer will only intensify the market’s addiction to rampant speculation, free money carry trades and the associated risks to financial stability.

Pivotfarm's picture

Biggest Stock Market Scams in History – Part I

A wicked web of deceit, with just a good measure of theft and forgery thrown in for old time’s sake!

Tyler Durden's picture

Dollar Demand = Global Economy Has Skidded Over The Cliff

Borrowing in USD was risk-on; buying USD is risk-off. As the real global economy slips into recession, risk-on trades in USD-denominated debt are blowing up and those seeking risk-off liquidity and safe yields are scrambling for USD-denominated assets. Add all this up and we have to conclude that, in terms of demand for USD--you ain't seen nuthin' yet.

Tyler Durden's picture

Market Top's In? Why Buy-The-Dippers Can't Get It Up

Currently, a new form of danger arises. The Keynesian pettifoggers at the Fed have painted themselves into an epochal corner. After 78 months of ZIRP they have no idea about how and why they got here; and now, mired deep in the lunacy of free money, they are clueless about where they are going next. There is not a chance the US economy has decoupled from the rest of the world. The great credit-driven boom was universal and fueled by out of control central banks. Now comes the bust phase, and these same money printing central bankers have no clue what to do about it.

Tyler Durden's picture

Indeed This Time Is Different: Because It’s Far Worse

Suddenly the narrative that “everything is awesome” is showing to not be as “awesome” as it was first proclaimed. Merely a few months have passed since the ending of QE and praises of awesomeness everywhere are morphing into questions more akin to “Oh no: not again!” And with that we are now watching those who pushed, pulled, and levitated that narrative scramble desperately to push another narrative back onto the stage that worked so many times before: “Every sell off over the last 6 years has shown to be a profitable buying opportunity.” i.e., Just buy the dip (JBTFD). Yet it would seem these dips; are far different.

EconMatters's picture

Watch As All the Bond Rats Jump Ship before FOMC Meeting

Next week is all about the Fed, and the positioning or should I say De-Positioning will be taking place right up until the last minute of this all-important Fed Meeting.

Tyler Durden's picture

An Inflection Point For Keynesian Parlor Tricks

Suddenly everywhere you look, one after another, a story is making its way into the main stream press (albeit a trickle but that’s a tidal wave in comparison) that we may be, in fact; experiencing a “bubble” in stock prices. Even those who still believe in unicorns and rainbows (cue CNBC) are finding it harder and harder to hold onto the magic. Anyone with just a smidgen of common sense knows what’s being presented as “a miracle of economic intervention” has been nothing more than a grand escapade only made possible through the use of monetary smoke and mirrors.

Tyler Durden's picture

"Give Everyone A Check For $10 Million, It Will Create Inflation": Albert Edwards First TV Interview In 20 Years

In his first TV interview in 20 years, SocGen's Albert Edwards unleashes his brutal honesty on Raoul Pal in this excellent RealVisionTV discussion. From "what Japan is doing is absolutely off the scale," warnings about money-printing to the awkward reality that "policy makers cannot eliminate the business cycle," warnings instead that "they will make the eventual downturn far worse than it otherwise would be..." Edwards' discussion ranges from the UK and US "choosing lunatic policies" to describing Alan Greenspan as "a prospective economic war criminal," the SocGen strategist concludes, rather ominously, if policy-makers keep handing out free money, it will create massive problems, "there is a trigger point where you can create inflation. I don't know where that is. The central banks don't know where that is."

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