Authored by Simon Black via SovereignMan.com, In the year 1517, one of the most important innovations in financial history was invented in Amsterdam: the government bond. It was a pretty revolutionary concept. Governments had been borrowing money for thousands of years… quite often at the point of a sword. But the Dutch figured out how to turn government loans into …
One Man’s Opinion: David Stockman Offers “More Proof Of Janet Yellen’s Idiocy”
Authored by David Stockman via The Daily Reckoning, During the last 129 months, the Fed has held 86 meetings. On 83 of those occasions it either cut rates or left them unchanged. So you can perhaps understand why Wednesday’s completely expected (for the last three weeks!) 25 bips left the day traders nonplussed. The Dow rallied over 100 points that …
One Man’s Opinion: Beware The Ides Of March
By Jeff Thomas Eidus Martiae is the Latin term for 15th March, from the traditional Roman calendar. Since 44 BC, the Ides of March has held a dark reputation, as that was coincidentally the date of the assassination of Julius Caesar. In December of 2016, the Chairman of the Federal Reserve announced that the Fed was likely to raise the …
One Man’s Opinion: The Seven Stages To A Bear Market For Bonds
By Michael Carino We have just lived through the most spectacular global bull market run for the fixed income markets. This bull market rallied the bond market to the lowest yields ever! Over a third of all global fixed income was trading with a negative yield. The most accommodative central bank policies made heroes out of bond fund managers. Bond …
One Man’s Opinion: US Government’s 2016 Net Loss “More Than Doubled” To NEGATIVE $1 Trillion
By Simon Black Every year around this time the US federal government releases an annual financial report to the public. It would be hilarious if the numbers weren’t actually true. Just like Apple or Exxon, the government’s annual report contains several important financial statements and detailed commentary about their finances and operations. But unlike Apple, Exxon, the government can’t manage …
One Man’s Opinion: There Is A Cost To Fed Policy!
By ZeroHedge The Federal Reserve has pursued the unprecedented monetary policy of lowering rates to zero and increasing their portfolio from 500 billion to over 4 trillion. These are policies aiming to achieve maximum employment and low inflation. By many measures, they were successful. Growth of around 2% is at the long term US average and recent core inflation measures …