William Dudley

Tyler Durden's picture

Price Discovery And Emerging Markets





... things like a 50%+ drop in oil prices happen. Which at some point will lead more people to wonder what the real numbers are. For emerging nations, those numbers will not be pretty for 2015. They’re going to feel like they’re being thrown right back into the Stone Age. And they’re not going to like that one bit, and look for ways to express their frustration. Volatility is not just on the rise in the world of finance. It also is in the real world that finance fails to reflect. At some point, the two will meet again, and Wall Street will mirror Main Street. It will make neither any happier. But it’ll be honest.

 
Tyler Durden's picture

Did Jon Hilsenrath Just 'Leak' The Fed's "Earlier-Than-Expected, Surprise" Rate-Hike Plan





Chicago Fed's Charlie Evans called the drop in rates at the longer-end of the Treasury yield curve "extraordinary," falling just short of screaming "sell, sell, sell bonds" and threw wrench in the Fed's policy path by noting "raising rates at the wrong time would be catastrophic." So it is noteworthy that damage control appears to have been engaged this morning by no lesser Fed mouthpiece than Wall Street Journal's Jon Hilsenrath. Reminding the public of Bill Dudley's fears, when he argued the Fed had the wrong reaction to lower long rates in the 2000s, a mistake that might have contributed to the housing boom that ended disastrously; when instead the Fed should push rates higher sooner or more aggressively than planned.

 
Sprout Money's picture

Oil Won’t Trade This Low Forever... And The Chinese Know It!





While the price of oil is plunging, other price components are spiking higher...

 
Tyler Durden's picture

"These Are Astonishing Figures, Evidence Of A 1930s-Style Depression"





"...What is clear is that the world has become addicted to central bank stimulus. Bank of America said 56pc of global GDP is currently supported by zero interest rates, and so are 83pc of the free-floating equities on global bourses. Half of all government bonds in the world yield less that 1pc. Roughly 1.4bn people are experiencing negative rates in one form or another. These are astonishing figures, evidence of a 1930s-style depression, albeit one that is still contained. Nobody knows what will happen as the Fed tries break out of the stimulus trap, including Fed officials themselves."

 
Tyler Durden's picture

B-Dud Explains The Fed’s Economic Coup (Or Why Every Asset Price Influencing Monetary Policy Transmission Is Now Manipulated)





The Fed can do only do two concrete things to influence these income and credit sources of spending - both of which are unsustainable, dangerous and an assault on free market capitalism’s capacity to generate growth and wealth. It can induce households to consume a higher fraction of current income by radically suppressing interest rates on liquid savings. And it can inject reserves into the financial system to induce higher levels of credit creation. But the passage of time soon catches up with both of these parlor tricks.

 
Tyler Durden's picture

New York Fed's Conference Evokes Violent Thoughts Against Wall Street





"What everyone wants to believe is that when things reach a tipping point and go from being merely crappy for the masses to dangerous and socially destabilizing, that we’re somehow going to know about that shift ahead of time. Any student of history knows that’s not the way it happens. Revolutions, like bankruptcies, come gradually, and then suddenly."

 
Tyler Durden's picture

Fed Inspector General Finds NY Fed Knew Of JPMorgan 'Whale' Risks In 2010, "Missed Opportunity"





"as part of its continuous monitoring activities at JPMC, FRBNY effectively identified risks related to the CIO's trading activities, governance framework, risk appetite, and risk management practices in 2010. Additionally, a Federal Reserve System team conducting a horizontal examination at JPMC recommended a full-scope examination of the CIO in 2009. However, FRBNY did not discuss the risks that resulted in the planned or recommended activities... As a result, there was a missed opportunity for the consolidated supervisor and the primary supervisor to discuss risks related to the CIO."

 
Tyler Durden's picture

Saxobank CIO Warns "The Narrative Of Central Bank Omnipotence Is Failing"





We have been discussing the widespread belief in "the narrative of central bank omnipotence" for a number of months (here and here most recently) as we noted "there are no more skeptics. To update Milton Friedman’s famous quote, we are all Bernankians now." So when Saxobank's CIO and Chief Economist Steen Jakobsen warns that "the mood has changed," and feedback from conference calls and speaking engagements tells him, there is a growing belief that the 'narrative of the central banks' is failing, we sit up and listen.

 
Tyler Durden's picture

Hilsenrath Confirms Dovish Fed Talking Down The Dollar





Federal Reserve officials have become more concerned about weak growth overseas and the impact of a strengthening U.S. dollar on the domestic economy, warns WSJ Fed-whisperer Jon Hilsenrath, adding that, the stronger currency, by reducing the cost of imported goods and services, could hold U.S. inflation below the Fed’s 2% objective. Fed staff also reduced its projection for medium-run growth in part because of these concerns. The minutes showed more clearly than before that concerns about global growth and the disinflationary impact of a strong currency are giving officials additional pause about moving quickly on rates.

 
Tyler Durden's picture

Frontrunning: October 3





  • How you know it is all a lie: Pelosi Presses Obama to Talk Up Stronger U.S. Economy (BBG)
  • Secret Goldman Sachs Tapes Put Pressure on New York Fed (NYT), Uh, no they don't
  • Clashes Break Out at Hong Kong Protest Site (WSJ)
  • N.Y. Fed Lawyer Says AIG Got Billions Without Paperwork (BBG)
  • Ebola’s Disease Detectives Race to Track Others Exposed (BBG)
  • UPS, FedEx Want Retailers to Get Real on Holiday Shipping (WSJ)
  • No more mailman at the door under U.S. Postal Service plan (Reuters)
 
Bruno de Landevoisin's picture

Goldman Sachs Moral Compass?





And no, it certainly can not be characterized as doing God's work............................

 
Tyler Durden's picture

The Keynesian Jabberwocky Gets Downright Dumb





The Fed is now pre-occupied with an unanswerable and fanciful question, according to Jon Hilsenrath’s pre-meeting missive on the Fed’s current monetary policy “debate”. Figuratively estimating the number of angels which can dance on the head of a pin, Fed officials and economists suppose they can specify the the appropriate money market rate down to the decimal place for virtually all time to come... Of course, every one of these three magic numbers are perfectly arbitrary, academic and silly. Due to the structural failures of the US economy owing to decades of destructive Washington policies, the “unemployment rate” today is not remotely comparable to what was being measured in the 1950s and 1960s when today’s Keynesian theology with respect to the Phillips Curve, Okun’s Law and full-employment policy was being formulated.

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