The extended period of monetary accommodation and the accompanying search for yield are leading to credit mispricing and asset price pressures, increasing the chance that financial stability risks could derail the recovery. Concerns have shifted to the shadow banking system, especially the growing share of illiquid credit in mutual fund portfolios. Should asset markets come under stress, an[...]
Tag: fed policy
Serious Financial Trouble Is Erupting In Germany And Japan – Stage Being Set for Next Global Crisis
By Michael Snyder There are some who believe that the next great financial crash will not begin in the United States. Instead, they are convinced that a financial crisis that begins in Europe or in Japan (or both) will end up spreading across the globe and take down the U.S. too. Time will tell if they are ultimately correct, but even now there are signs that financial trouble is already[...]
No Rate Hike & More QE? – Fed Officials Saw Global Slowdown Among Risks to Economic Outlook
Federal Reserve policy makers at their last meeting said a global slowdown and a stronger dollar posed potential risks to the outlook for the U.S. economy. A number of participants said growth “might be slower than they expected if foreign economic growth came in weaker than anticipated,” according to minutes of the Sept. 16-17 Federal Open Market Committee meeting released Wednesday in[...]
The Central Bank Experiment that’s Destroying the Economy
By Addison Wiggin Addison Wiggin: When Janet Yellen gave her first news conference as Federal Reserve chair in March, the media pounced on her for “stumbling”; she was asked how soon they’d start raising the fed funds rate once quantitative easing was over and she said “about six months.” The market freaked out for an hour or so. But what else could she say? Imagine if she’d been[...]
Currency Wars Deepen – Russia, Kazakhstan Buy Massive 30 Tons Of Gold In August
It appears that Putin is going for the West’s jugular… By Mark O’Byrne - GoldCore Latest official gold reserve data from the International Monetary Fund (IMF) shows that Russia again added to its gold reserves in August, with the Central bank of the Russian Federation purchasing 232,510 ozs (7.23 tonnes) and bringing its total gold reserves to 35.769 million ozs or 1,112.5[...]
“Stunning Demand” One Individual Buying $40 Million Of Gold – Manipulation and MSM Trash Talk Backfiring
Today the man who owns one of the largest gold and silver dealers in the United States told King World News that there is massive and stunning buying of physical gold and silver now taking place at these levels. One individual has contacted him about purchasing $40 million worth of gold, which is equivalent to one ton of physical gold. Below is what 41-year market veteran Bill Haynes had to say[...]
CONTRARIAN ALERT! MarketWatch Publishes Piece: “Gold Crashes and is Now Tarnished for Good”
Could this opinion, which essentially implies gold is forever down and equities have entered a permanent high, be one of those classic calls at a market turning point? Further, such "this time its different" call believes that central bank manipulation is a practice that can go on in perpetuity. Remember these brilliant proclamations from Fortune and Business Week. One made approaching a top[...]
Everyone is a Genius in a Fed-Induced Stock Rally – “Pro’s” Drinking Their Own Kool-Aid?
By Michael Sincere Don’t confuse brilliance with a bull market Bullish stock investors are feeling invincible. For example, I recently received a taunting email from an investor who is 100% convinced that the Dow Jones Industrial Average DJIA, -0.62% will hit 18,000 by January because author and professor Jeremy Seigel said so. This investor advised me to buy mutual funds or stocks so that I [...]
Fed Renews Zero Interest Rate Pledge, Restates Jobs Concerns – Duration of Action for “Considerable Time”
The U.S. Federal Reserve on Wednesday renewed a pledge to keep interest rates near zero for a "considerable time" and repeated concerns over slack in the labor market, standing firm against calls to overhaul its policy statement. Many economists and traders had expected the central bank to alter the rate guidance it has provided since March, given generally improving data on the economy's[...]
Drugged Up Economy is Blurring Inflation Numbers
The Fed continues its artificial monetary policy and presses forward with historically low interest rates. They have kept interest rates at nearly 0% since 2008 — going on six years now. The economy has been creeping back slowly and artificially held together by poor policies that have it drugged up so badly, it’s now required for life support. The new normal for the Federal Funds Rate is[...]