Post Tagged with: "quantitative easing"
On JPM’s Dimon’s still unassailable position and Facebook as the new Yahoo
I spoke to Paul Waldie and Brian Milner of the Globe & Mail on BNN’s headline on Monday. The big story was JPMorgan Chase and the London Whale trades. JPMorgan Chase’s CEO Jamie Dimon, as the leading lobbyists for the hands-off regulatory approach for US banks, has become a lightning rod for criticism of too big to fail banks in the US. Even so, I think it’s unlikely that Dimon will be forced out of his position. We also talked about Yahoo and the oversubscribed Facebook IPO. They are going to have to execute really, really well to justify the IPO valuation
[Premium] On helicopter drops and wealth confiscation in Europe
Hugh Hendry made some remarks about confiscation last week that I addressed in my TV appearance on RT’s capital account (see video here). The gist of his comments was that he fears government’s ability to confiscate wealth as a means of dealing with the economic crisis in Europe. On RT, I said that I didn’t think the situation had reached that point in Europe and so I was not overly concerned. But I do want to flag comments by a major bank economist that touch on these issues
Global Growth Is Slowing
So momentum is weakening across the entire global economy at the present point, not just in say Europe, or China. Global output is still growing but it is growing at an increasingly weaker pace. What could change that
Bill Gross: QE on hold but QE3 would be back on if jobs reports are weak
Last month PIMCO founder and Chief Investment Officer Bill Gross said PIMCO sees a mortgage-backed QE3 from the Fed as likely. As a result, Pimco has increased its exposure to these. He spoke to Bloomberg television yesterday about how his views on this have changed and it depends on the upcoming jobs reports
What about all those excess reserves at the Fed?
The Fed is out of bullets on interest rate policy and has turned to other nonconventional measures like quantitative easing. Excess reserves have piled up as a result. What does this mean for inflation and the economy
[Premium] On Investors Who Expect QE3 in 2012
Quantitative easing hasn’t worked to lower interest rates in the past but has caused a huge uproar from those opposed to the policy in the US. QE is therefore both ineffective and politically-charged. But a lot of people still expect it
Why Valuation Doesn’t Insure Against A Significant Market Decline
Given a clearly overbought market, the re-emergence of Europe’s sovereign debt problem and the Fed reducing the imminence of QE3, even the bulls concede that a correction is likely. Overall, however, investors remain optimistic, and are looking forward to any correction as a buying opportunity, maintaining that the economy is too strong and the market too cheap to decline very much. As we have written about in recent comments, we do not think the economy is anywhere as strong as many believe. Moreover, we do not accept the conventional wisdom that the market, at current levels is undervalued, a point we want to make in this comment
Seven Observations about the Yen
The yen was the weakest of the major currencies in Q1, losing about 7.2% against the dollar. There was a clear shift in both speculative and portfolio flows. This is just one of seven observations about the Yen via Marc Chandler
FOMC Sets Dollar Tone
The minutes from the March FOMC meeting have continued to drive the dollar higher, except against the yen, and bonds and stocks lower. Especially in the context of Bernanke’s recent remarks, the, should we say less than dovish, tone to the minutes caught the market wrong footed. The FOMC in essence tweaked its economic and inflation assessment higher than seemed evident in the FOMC statement following the meeting. It will encourage many to come around to the view outlined here that the bar to QE3 is high and requires more than the status quo, but a deterioration in conditions
Video: On the third round of quantitative easing and the US economy
The video below is from On the Edge with Max Keiser. I speak to Max during this show from 31 March about the US economy, Federal Reserve policy, financial repression and more. On the issue of financial repression, I think my view is pretty clear from this video. However, I should note that analysts like Marshall Auerback take issue with the whole notion. He wrote me just yesterday on the topic
[Premium] Quick thoughts on Fed policy and the potential for QE
Last August, the Fed went for what I call “rate easing”. If the economy weakens this year what will it do? I am not convinced it will be quantitative easing. In general, I think the Fed, while looking to support the growth side of its dual mandate, wants to look to the data before acting since monetary policy acts with a lag. This post is about those policy concerns and about what Fed policy has already done. Private portfolio preferences have shifted considerably. An article in today’s Wall Street Journal “Junk Bonds Feed a Hungry Market” shows the way, with a lot of quotes about people reaching for yield because Treasury yields have been suppressed
[Premium] Daily commentary: On QE3
This one’s short today as I am running out of time. I posted earlier regarding Bill Gross’ comments about the Fed doing a mortgage-backed QE3. There’s nothing fundamentally off about this call. But we really aren’t there yet as it is wholly dependent on the US economy