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Squeezing The Consumer From Both Sides

Authored by 720Global's Michael Lebowitz via RealInvestmentAdvice.com, The Federal Reserve raised the Federal Funds rate on December 13, 2017, marking the fifth increase over the last two years.  Even with interest rates remaining at historically low levels, the Fed’s actions are resulting in greater interest expense for short-term and floating rate borrowers. The effect of […]


Pound Slides After BOE Holds Rates: Warns Q4 Economy “Slightly Softer”, Sees “Gradual And Limited” Rate Hikes

As previewed moments ago, the BOE decision was rather unexciting, and after its November rate hike – the first in a decade – which many speculated could be a “one and done”, the Bank of England unanimously kept rates unchanged at 0.50% as expected. The lack of dissenters meant this was the first time the […]


Are Repos Signaling A Massive Bond Short Ahead Of Payrolls?

It's been a few months since we saw any major dislocations in the Treasury repo market, i.e., collateral shortages as a result of surging TSY shorts; for the simple reason that after the first quarter when everyone was certain that Trump reflation trade would kick in but didn't, the record number of built up spec […]


Is This The Reason For EONIA’s “Mystery” Surge?

'Mystery' solved… maybe.   Bloomberg is reporting that excess liquidity within Greek banks – who leant it to their credit-risky peers at notably high rates – are responsible for the sudden, scary spike in EONIA over the last two days, according to two bankers with knowledge of the matter. Salaries that were deposited by Greek […]


Here’s The Chart That Everyone Is Talking About (And Hoping Is Not ‘Real’)

While mainstream media eyes have been focused on wrecked tech stocks and towering trannies, professionals in the world's largest liquidity markets have been shocked at the sudden explosion in one chart… that most everyone is hoping is not 'real'. With central banks puking money at low or negative rates to anyone who can fog a […]


McCain Mania Sends Dow Soaring To Record Highs As Yield Curve Collapse Continues

The longest short-squeeze streak in history continues…   John McCain's "Yes" at 1051ET seems to have been the catalyst that extended overnight gains into melt-up mania… (Small Cap smanaged to scramble back green on the day as Trannies rose 2%)   But the Nasdaq remains red on the week…   Futures show the crazy moves […]


Breslow: “The Answer To This Question Will Drive Just About Everything”

Having passed the first hurdle this morning (PCE did not drop further), The Fed's December hike is now locked and loaded, but, as former fund manager Richard Breslow notes, at the end of the day, the real elephant in the room is if, when and how fast the big central banks shift toward policy normalization. […]


Francesco Filia: The World’s Twin Asset Bubbles Could Collapse Under Their Own Weight

In this week's MacroVoices podcast, Erik Townsend interviews Francesco Filia, a fund manager at Fasanara Capital. After exchanging pleasantries, Townsend begins the interview by asking Filia, an analysts who's widely regarded for his research about how post-crisis monetary policy has impacted distorted markets, about the different metrics he uses to determine whether a certain asset […]


BoE Deputy Governor Gives Crazy Speech Warning Markets Have Underestimated Rate Rises

On 2 November 2017, the Bank of England raised rates for the first time in a decade and Sterling’s initial rise was promptly sold off by forex traders as we discussed. The 7-2 vote by the Monetary Policy Committee was not the unanimous decision some had expected, while Cunliffe and Ramsden saw insufficient evidence that […]


Next Phase Of Carmageddon: The Banks

Authored by Wolf Richter via WolfStreet.com, Banks have started to tighten lending standards for prime and subprime borrowers, and it shows… Banks are further tightening their lending standards for prime and subprime auto loans. This process started in Q2 2016, when auto lending had reached the apogee of loosey-goosey underwriting that had boosted sales of […]


EU Shadow Rate Madness

Authored by Kevin Muir via The Macro Tourist blog, The other day I stumbled upon this great tweet from Holger Zschaepitz, the senior editor of the financial desk of the German newspaper, Die Welt. I have often said the last thing any equity bull should hope for is a strong economy, especially one accompanied with […]


Bank Of England Hikes Rates By 25bps In 7-2 Vote; First Increase In A Decade; Pound Plunges

Over ten years since the last rate hike by the Bank of England in July 2007 (when incidentally, cable was trading above $2.00), and following years of market expectations of an imminent rate hike that failed to materialize… …. moments ago the BOE – which had telegraphed the move extensively in recent months despite some […]


FOMC Leaves Policy Unchanged, Upgrades Growth To “Solid” From “Moderate”

In perhaps the least anticipated FOMC statement in months – with expectations of no rate-change and normalization on path – all eyes were on inflation/growth wording. Some feared a more dovish Fed might upset the exuberant growth narrative that is embedded into equity valuations (but not the yield curve), but The Fed seemed slightly more […]


Trump Met With Janet Yellen; Meeting Lasted 30 Minutes

The anticipated meeting between president Trump and Janet Yellen has concluded, and according to Fox News, it lasted no more than 30 minutes, running from 2:00PM to 2:30PM, or barely enough for Trump to stop patting himself on the back about the yuuge Dow Jones rally under his presidency. #BreakingNews WH official tells me Janet […]


Fed’s Kaplan Makes A Stark Admission: Equilibrium Rate May Be As Low As 0.25%

As we have hammered away at for years, “the math doesn’t work”, and it appears The Fed just admitted it. In a stunning admission that i) US economic potential is lower than consensus assumes and ii) that the Fed is finally considering the gargantuan US debt load in its interest rate calculations, moments ago the […]