The massive emergency easing measures enacted by the Fed over the weekend to inject liquidity into the global financial system are a sign of sheer panic. Both their sheer scale, and radical extent–including cutting rates to zero, $700 billion in new…
We have been warning about the impending economic crisis since March 2017. Central bankers and Chinese leaders have been able to postpone the onset of the crisis for…
One thing has been bothering us for six years. How can so many economists and economic commentators dismiss the ever-increasing market meddling of central banks so lightly?
The first time we warned about this possible threat to financial markets w…
The world economy has not been in a more precarious situation in over a decade. Growth is faltering everywhere, with the Eurozone flirting with recession, while central banks have returned to monetary easing after just one year of global tightening.
Almost all economists and the vast majority of the general population erroneously believe that central banks are, basically, indestructible. And most fail to appreciate that central banks are different from normal commercial banks in just two respect…
It is estimated that over 14% of companies in the S&P 1500 are zombies. In China, roughly 20 percent of A-sha…
The stock market has been rallying lately. It has been supported by the People’s Bank of China (PBoC), which started its liquidity operations in mid-December, and the Federal Reserve (Fed), which changed to a much more ‘dovish’ tone in January. But, …
2019 has started more calmly after a very volatile year-end in the markets. Focus has been on the trade deal between China and the US and the words of the central bankers, most notably those of Jay Powell. However, this is all just a distraction, a s…
Errata in the effects of QE corrected 10/21. Market liquidity… Read More »The (ominous) problem with global liquidity
The general storyline of the Global Financial Crisis (GFC) goes about like this: funds from all over the world headed to the US, where the banks, to finance the housing market boom, developed unsound financial products which then brought down the glo…
