Tag Archives: Featured

Hillary Clinton, Donald Trump This tells you everything you need to know about how Hillary will operate as President: there will be no honesty, transparency or truth, ever. Hillary’s bid for the presidency is no longer defensible; it’s time to bring back Bernie Sanders as the Democratic nominee. The issue isn’t Hillary Clinton’s health per se; what is indefensible is her response to legitimate questions of the...

This will be a mostly charted recap of where exactly in the rabbit hole of negative yielding corp bonds we are following last week’s knee-shaking sale of some brand new negative yielders by non-state owned Henkel and Sanofi. It was a first. It was exciting. From Morgan Stanley, with our emphasis: We estimate that a total of €467bln of EUR IG bonds now have sub-zero yields. Of this, €313bln of bonds are iBoxx...

13.09.2016 09:15  – FSO, Prices (0353-1608-90) The Producer Price Index (PPI) or officially named "Producer and Import Price Index" describes the changes in prices for producers and importers. For us it is interesting because it is used in the formula for the Real Effective Exchange Rate. When producers and importers profit on lower price changes when compared to other countries, then the Swiss Franc reduces...

Submitted by David Stockman via Contra Corner blog, The central banks have gone so far off the deep-end with financial price manipulation that it is only a matter of time before some astute politician comes after them with all barrels blasting. As a matter of fact, that appears to be exactly what Donald Trump unloaded on bubble vision this morning:  By keeping interest rates low, the Fed has created a “false stock...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. The Cost of Carry The prices of both metals were down this holiday-shortened (Labor Day in the US) week, especially on Friday. The decline corresponded to a spike in interest rates. Of course everyone watched the action of the stock market on Friday. Whatever the proximate cause, the root is credit. When borrowing to...

12.09.2016 09:15  – FSO, Economic Surveys (0353-1608-80) The Swiss Real Estate Bubble and Rents The number of empty dwellings is an important indicator for the Swiss real estate bubble. Prices of Swiss real estate had risen by 5%-8% per year between 2009 and 2014, while rents for existing contracts are regulated and have not followed this path yet. Landlords can only introduce higher prices levels for new buildings...

EM ended last week on a soft note. Perhaps it was the North Korean nuclear test (see below).  Perhaps it was disappointment in the ECB or rising Fed tightening odds. Whatever the trigger was, EM FX weakness persisted and appears likely to carry over into this week. Indeed, as the September 21 FOMC meeting approaches, markets are likely to get even more jittery and choppy.  Just to keep things in perspective,...

While the view might be great from the top of the wealth/income pyramid, it takes a special kind of self-serving myopia to ignore the reality that the bottom 95% are not doing so well. We’re ceaselessly told/sold that the U.S. economy is doing phenomenally well in our current slow-growth world — generating record corporate profits, record highs in the S&P 500 stock index, and historically low unemployment (4.9% in...

Summary: Global bonds and global stocks ended last week on a weak note and this will likely carry into this week’s activity. The Bank of England meets, but the data may be more important. Oil and commodity prices more generally look vulnerable, and this coupled with higher yields sapped the Australian ad Canadian dollar in the second half of last week. The week ahead will likely be shaped by a combination of...

Submitted by Michael Shedlock via KMichTalk.com, Looking for group think, extrapolation of extreme silliness, linear thinking, and belief in absurd models? Then look no further than Fed presidents, their advisors, and academia loaded charlatan professors. Today’s spotlight is on Marvin Goodfriend, a former economist and policy advisor at the Federal Reserve’s Bank of Richmond, and Ken Rogoff, a chaired Harvard...