Category Archives: Fed-Reserve

Schumer to Yellen: Keep Blowing That Bubble!

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Good old Chuck, too much is apparently not nearly enough. Chuck wants ZIRP-infinity stating that Ms. Yellen should “be careful” about raising interest rates.

Here’s what Sen. Charles Schumer wants to tell Janet Yellen on Tuesday

He ostensibly thinks that a lack of job growth is the “overwhelming problem” facing the economy. I think Chuck’s straw man is starting to come apart at the seams as the hay that stuffs it pops out in an embarrassing display. (more…)

‘Show Grit Like Bernanke’

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So Janet Yellen is giving the old Knute Rockne routine to the graduates at NYU.

Yellen tells graduates: Show grit like Bernanke

“We’re going inside ‘em… we’re going outside ‘em… and when we get ‘em on the run once, we’re gonna keep ‘em on the run!” –Knute Rockney

“My predecessor at the Fed, Chairman Ben Bernanke, demonstrated such courage, especially in his response to the threat of the financial crisis. To stabilize the financial system and restore economic growth, he took courageous actions that were unprecedented in ambition and scope.”

It takes a lot of courage to double down on the same stuff that created the financial crisis to begin with. Putting out fire with gasoline… yes, that takes courage. (more…)

ZIRP Era in Pictures

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Zero Interest Rate Policy (ZIRP) was instigated by a credit induced collapse of the US financial system and perpetuated in December of 2008 by desperate financial policy makers as a fix to problems they created in the first place.

In reality, it is simply an epic distortion of normal economic signals that cleaned up the mess created by previous policy distortions (like the commercial credit bubble of the Greenspan era) by systematically (5+ years and running) main lining new distortions into the system.

zirp (more…)

Will History Record The Ending Of QE As An Archduke Moment?

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One can’t help but look at the situations transpiring around the globe and hope: things are different0512-ass this time. The problem is being different puts it right back in line with that other caveat: history doesn’t repeat itself, but it does rhyme. And so lies the most troubling aspect facing not only the U.S. economy, but quite possibly the world as whole. For if things rhyme anything inline with past events in history: We’re all in a dung heap of QE based minutia, with Geo-political ramifications the “intellectual” crowd never contemplated as possible – let alone probable.

It was just a mere 4 years ago this month in which then Fed. Chair Ben Bernanke announced to the world via his now infamous Jackson Hole speech that QE would basically be adulterating the financial markets indefinitely. i.e., QE1 became QE2 signaling QE4eva. And since that time the Federal Reserve has done just. And as always that decision was heralded by the financial media as “genius.” (more…)

No Cigar

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The bears put on a brave show yesterday trying to break down through support but the afternoon rally wiped away the losses, and SPX closed well above support at the daily middle band and the 50 DMA. Now, with 16 of the last 18 Tuesday having closed green, the bulls have their shot at breaking out of the current range. SPX daily chart:

140429 SPX Daily Trendlines BBs MAs

(more…)

Is the Yield Curve Really Flattening?

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There is a lot of talk now about a flattening of the yield curve. This talk has been among the most intense right here at the website you are reading at this moment. A flattening curve is commonly viewed as bad for gold, and according to Mark Hulbert, is an indicator of a coming recession.

Why you should care about the yield curve

But is the curve really flattening or is this all hype based on Janet Yellen’s press conference comments? Here is a chart the likes of which we have been using in NFTRH for many months now, the 30 year vs. the 5 year yield. (more…)

And Here Comes the Fed

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I suspect I’ll be busy dodging bullets for the afternoon, so I’m just going to toss up this fitting image to give me some breathing room while managing my positions through the tumult

0319-roller

By the way, some of you have received spam from the SocialTrade system from a “Victorialilybabe@gmx.com” (or something like that). The system doesn’t “reveal” your email to anyone, although apparently it can still let junk like this find its way to you through SocialTrade. Rest assured we’ll track down this bug and nuke it.