The S&P500 jerked higher yesterday afternoon when the Fed minutes revealed no new information on the dreaded day when interest rates begin to rise. In other words, the stock market is one sick puppy—utterly addicted to the Fed's baleful regime of ZIRP.
And it is a regime. We are now in month 68 of essentially zero interest rates in the money markets. There is nothing like it in post-war history.
The argument for the dangerous absurdity of providing zero cost funding to carry-traders and speculators is that the US economy was smacked by a [...]
Today, Obama did more of what he has been born to do: preach from a teleprompter, this time at the Paramount Theater in Austin. Here are the choice excerpts from the speech transcript. They hardly need commentary:
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Sometimes people say thank you for something I've done or a position I've taken, and some people say, "You're an idiot." (Laughter.) And that's how I know that I'm getting a good representative sampling because -- (laughter) -- half the letters are less than impressed with me.
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The crisis in 2008 hurt us all badly -- worst financial [...]
Two weeks ago we highlighted just how "screwed" Las Vegas is due to the catastrophic drought that is occurring (combined with almost total ignorance that this is a problem). As Bloomberg's James Nash reports, about 55% of Nevada, already the nation's driest state, is under “extreme'' or “exceptional'' drought conditions, the worst grades on the U.S. Drought Monitor; but recently the situation has got even worse. Lake Mead, the man-made reservoir that supplies 90 percent of the water for 2 million people in the Las Vegas area, has been reduced by drought to the lowest level since it was [...]
The current repo fails problem “directly rebukes” the idea that the Fed has “all possible scenarios covered.”
For the Fed to have all scenarios covered would mean that the NY Fed's SOMA portfolio has to maintain a “broad enough inventory” to satisfy the market
“That, on its face, is a patently unrealistic assumption since it [...]