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Thomson Reuters In September, the Fed announced a plan to gradually wind down its massive bond purchases made during and after the financial crisis. That plan has been proceeding on schedule, despite turmoil in markets in February. The fifth month of the QE-Unwind came to a completion with the release this afternoon of the Fed’s balance […]
AP During the financial crisis, the Federal Reserve built up a store of roughly $ 4.5 trillion in Treasurys and other assets, like mortgage backed securities, on its balance sheet. Since then, when these assets have come due the Fed has turned around and reinvested the principal back into new assets, maintaining the size of its balance […]
REUTERS/Victor Fraile The debt slaves are beginning to buckle under their loads. Consumer and business bankruptcies are rising again, after declining for years since the financial crisis. That’s not a propitious sign. For bankruptcy filings by businesses from large corporations to tiny sole proprietorships, the dance started in November 2015. At first it was the […]
REUTERS/Kevin Lamarque The late economist John Kenneth Galbraith famously stated economic forecasting was invented to make astrology look respectable. The Federal Reserve seems bent on proving Galbraith right, this time when it comes to guidance about what it intends to do with its $ 4.5 trillion balance sheet, which expanded sharply in response to the […]
Screenshot via Bloomberg TV What we are talking about here is the unwinding of the so-called “Trump Rally” since November 8th. The political premium that was placed on the pricing of risk premiums following last November’s election — that part of the rally that reflected faith-based “animal spirits” as opposed to fact-based fundamentals. I recall […]
