Nothing more to say until after the debate, which I’ll be watching with rapt attention. See you there.
If there’s one thing the people of Japan can count on, it’s their Yellen equivalent screwing up whatever he tries………
I’ve probably done six or seven posts in recent memory about the oh-so-expensive housing market around here, and honestly, even though I see crazy prices every day, I try to avoid doing posts like these, only because…….well………you get the point. But sometimes a place is just so danged ugly, I have to say something. Thus, I offer you:
Haruhiko Kuroda is clearly the Dennis Gartman of the central banking world.
Last night (based on the time zone in this once-great republic of the United States), the news came out that although Japan wouldn’t be making interest rates even more negative (yes, this is the topsy-turvy world we live in…….more negative) they would be introducing “yield control”, whatever the hell that means.
After a few moments of initial panic, the market liked what it heard and did precisely what Kuroda wanted: bid the US dollar up mightily versus the Japanese Yen.
Bankers have a justifiably awful reputation, particularly after the financial crisis. Although they completely raped the country, the general meme afterward was, “Yeah, gee, they got away with it, but we’ve learned our lesson as a society. Now we have the laws in place to harshly punish misbehavior on the part of bankers, and if they do anything naughty again, we’re going to throw the book at them. So………..sorry, society, but we’ve got your back now. Honest.”
Thus the Dodd-Frank law was seen as the “make good” for humanity letting Lloyd Blankfein, Jamie Dimon, and all the rest of them not be strung up by their necks in 2008.
We got our first test of this recently when Carrie Tolstedt, whose 102,000 “team members” (ummm – clerks) were directed to execute one of the most massive frauds in financial history, was caught red-handed. Carrie was one of those featured in the “most powerful women in banking” cover stories that American Banker does regularly.
As excited as I was to see the market falling to pieces again on Sunday night, I was somewhat disappointed (although not too surprised) to see strength returning on Monday morning.
It only took a moment to see what was going on, however. (more…)