Negative Interest Rates As Panacea Fresh Wishful Central Bank Thinking?

posted in: Credit, Currency, Economy | 0

Negative interest rates have been in the headlines for a while now.  Since Janet Yellen’s, Fed chair, Congressional testimony last week, it has been doing so with increasing frequency. Does the Fed even have the legal authority to use negative … Continued

Scenario In Which U.S. M2 Money Velocity Continues Lower

posted in: Credit, Economy | 0

If a chart gets retweeted 86 times, it is safe to say that the topic in question has touched a nerve in Twitter finance. The chart above had that distinction.  The topic it highlighted thus deserves a post.  So here … Continued

With Fundamentals Unlikely To Improve Any Time Soon, Watching Technicals For Signal

posted in: Economy, Equities, Technicals | 0

Stanley Fischer, Federal Reserve vice chair, last week stated that U.S. inflation should rebound next year.  As things stand now, government data do not show much inflation. In September, consumer prices, measured by the consumer price index, were unchanged in … Continued

Fed In ‘Heads You Win, Tails I Lose’ Situation

posted in: Credit, Economy | 0

The Federal Open Market Committee begins its two-day meeting today, the significance of which cannot be stressed enough.  A lot is riding on this.  After this meeting, there will be two more left this year – one late October and … Continued

CoT: Peek Into Future Through Futures

The following are futures positions of non-commercials as of September 1, 2015.  Change is week-over-week. 10-year note: The IMF is at it again.  This week, it reiterated its stance that advanced economies should maintain accommodative monetary policies.  By that it … Continued

HYG, JNK not likely to take kindly to hawkish Fed, let alone end of ZIRP

posted in: Credit, Economy, Equities | 0

Last six years, U.S. high-yield bond issuance of $1.6tn This week, several Fed officials signal imminent rate hike this year Junk bonds – popular risk-on vehicle – not likely to take kindly to end of ZIRP A week ago, HYG, … Continued