By ZeroHedge With no expectations of a rate-hike last week, and traders rapidly giving up on The Fed’s dream of a steadily higher rate trajectory, a funny thing happened in the markets… In the eyes of The Fed, their monetary policy has not been this ‘tight’ since October 2008. However, in the eyes of the market, financial conditions just hit …
One Man’s Opinion: “Investors Are Dangerously Unprepared” – Axel Weber, Former Bundesbank Head Warns Of Coming Rate Hikes By ECB
Submitted by Michael Shedlock via MishTalk.com, Axel Weber, former head of Germany’s central bank says the ECB is going to halt QE soon and hike rates by September. Weber warns Markets Unprepared for Central Bank Shifts. Investors are dangerously unprepared for a sharp rise in eurozone bond yields when US interest rates march higher and European quantitative easing ends, Axel …
One Man’s Opinion: Welcome To Fantasy Land
By Peter Schiff via Euro Pacific Capital For years I have argued that ultra-low interest rates act more as an economic sedative than a stimulant. This idea has elicited laughter from the economic establishment. But it is becoming clearer that rates set by central banks that are far below the levels that free markets would have otherwise determined have dragged …
One Man’s Opinion: Will The Federal Reserve Continue With Rate Increases?
The latest US-made durable goods reading was disappointing for the economy and showed businesses were pulling back even further than investors anticipated going into 2016, said Lindsey Piegza, chief economist at Stifel Fixed Income. Beyond the headline number, the details were more disappointing as capital goods orders, excluding aircraft and defense, a proxy used by investors for business investment, were …
One Man’s Opinion: Do Downside Risks To The Economy Still Exist?
The latest retail sales reading that showed June sales (excluding automobiles) slipped 0.1 percent doesn’t suggest the US economy has turned a corner and the economy would be able to sustain a hike in interest rates, said Austan Goolsbee of the Chicago Booth School of Business. While global events such as the turmoil in Greece and the meltdown of Chinese …
One Man’s Opinion: Will US Equities Rise As The Budget Deficit Shrinks?
The Federal Reserve balance sheet has nearly tripled in size to $3 trillion over the last few years, which is a cause for concern, says David Kelly, chief market strategist at JP Morgan Funds. The US Fed has loaded up their balance sheet with a pile of very bad assets, i.e. very low yielding bonds, and eventually they have to …