“Fear And Greed”: Central Bank Front-Running And What It Means For Traders
“Fear and greed [used to be] a continuum, allowing for an ebb and flow with continuous price discovery and availability,” Bloomberg’s Richard Breslow wrote on Thursday. “What we have now is pedal to the metal front-running of central banks and the nagging fear that when the fun ends there won’t be a bid anyway, so…
It May Be Time To Stop Blaming Central Bankers
“My message will be largely favorable, although recent developments have been mixed.” That’s it ladies and gentlemen. We’ve officially reached the nadir of Fed communication. Janet Yellen is now telegraphing what she is about to say in a speech which is itself ostensibly meant to telegraph something else. It’s a kind of bizarre evolution wherein…
Lower For Longer: Street Bets On Treasury Rally As Top Fed Official Warns On Policy
"I think markets may be extrapolating from our recent behavior and thinking all we do is delay.” That’s from Jeffrey Lacker and it’s entirely accurate. Lacker has been a vocal critic of the FOMC’s easy money policies for years and on Monday, The Washington Post published an exclusive interview with the Richmond Fed chief. Back…
Einsteinian Insanity: Media, “Experts” Say Central Banks Should Buy (More) Stocks
Einsteinian Insanity: Media, “Experts” Say Central Banks Should Buy (More) Stocks Earlier today, I touched on the fact that the BoJ and the ECB have largely failed to rekindle the inflationary impulse in their respective economies. And it’s not for lack of trying. Haruhiko Kuroda is monetizing the entirety of gross JGB issuance, imperiling liquidity…