Fed overnight repo spiked back in October (putting liquidity into banks).
Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Bonds Break Down
All eyes are on Jerome Powell for Wednesday. I bet the man cannot WAIT to hang up his FOMC badge and get out of there in a few months, making way for the grinning, brown-nosing sycophant Kevin Bennett to get in there to push rates too low and wreck the economy completely. In the meanwhile, bonds continue to go precisely the OPPOSITE direction you’ve expect.
The Idiotic Premise
Here is my understanding of what Trump’s administration thinks about the Fed, the Economy, and the Market:
- Jerome Powell is incompetent;
- The U.S. economy is like a huge pile of oily rags that is just needing something to light it in order to really catch fire, and that “something” is lower interest rates;
- Powell should be lowering rates massively, but he’s refusing to do so for political reasons;
- Once Trump installs one of his sycophantic cronies to head the Fed, the slashing of rates can begin;
- At which time the economy will be fabulous and the stock market will rush into the stratosphere since, you know, it’s like totally cheap and massively undervalued right now.
Every single one of these things is dead wrong, yet people are too stupid or too politically loyal to dare think or say so. Probably stupid, for the most part. In any case, time will prove this entire thesis to be fantastically incorrect, and I will endlessly refer back to this very post.
(more…)The Jerome Show – Live!
Waiting for Guffman
I read a lot. I used to write more than I read, but that fluctuates. With each passing day, as I absorb news and commentary, I am increasingly convinced how backwards we’ve gone since the silly little book shown below was a bestseller.
It’s a tired trope, I realize, for some middle-aged guy to be jabbing his finger at the news and saying the world’s gone crazy, but that’s where I’m at. It’s even worse to think that, for every dollar someone earns, they’re allowed to keep almost 50 cents while the rest gets ripped away and given to all forms of feckless government, is appalling.
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