From the category archives:
There are some good stories at the Washington Post today about how the Fed is fueling fresh carry trades/bubbles by keeping interest rates pegged around zero. I covered this exact same topic a few days ago. The Fed seems to have no other solution for burst bubbles than easy money … which then fuels new [...]
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The dollar’s collapse is gathering steam in early trading today. The broad-based Dollar Index is down 38 ticks to 76.95 as I write. It has taken out technical support dating back all the way to December. Certain individual currencies, like the Aussie dollar, are trading at the higest level against the buck in more than [...]
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Folks, the market is shouting - SCREAMING — that we are on a troublesome economic path. The tinkerers in Washington and Treasury are driving the dollar into the crapper. They’re putting Treasuries into the shredder. The mortgage markets just dislocated in a huge way. And gold is flying toward $1,000 an ounce.
Oh and don’t forget [...]
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Watching the market action this morning, I can’t help but think the Federal Reserve is in a total Catch 22 situation. It can signal a plan to increase its purchases of Treasuries and mortgages to hold rates down. Indeed, speculation about just such a move has driven long bond futures up almost two points in [...]
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I’ve been hammering home a clear point for several weeks and months – there is no such thing as a “free lunch.” You can’t simply bail out anyone and everyone, especially when you’re a debtor nation, and expect your creditors to just grin and bear it forever. Click here for more of my views on this topic.
Now [...]
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