201505.27
1
0

Rather Than All Efforts Aimed At Making Central Banks More Efficient

Leave it to a self-described socialist to undermine his own argument. Decrying the apparent overabundance of personal hygiene and fashion, presidential candidate Bernie Sanders took to confounding as to how many ways evil capitalism could produce odor-altering products but leave so many so hungry. You don’t necessarily need a choice of 23 underarm spray deodorants…

201505.27
3
0

Further Testing ‘They Don’t Know What They Are Doing’

When looking toward what might be coming next from the FOMC, the reigning theme remains “they don’t know what they are doing.”  That sentiment applies, of course, retroactively to all the QE’s, Twists and badly implemented emergency measures on the way down, but attention is rightfully focused now on how to get to C.  Going…

201505.27
2
0

‘Dollar’ Reversal Gains

Nobody really knows what is going to happen as Greece disproves all the narratives about the ECB’s ability to actually fix anything. As with all things monetarism, the attempts of liquidity were really about time rather than dissuading imbalances. But the funny thing about trying to buy time is that it so often removes the…

201505.26
1
0

Zero-sum Real Estate?

Recent real estate figures for new home sales and existing home sales do not seem to agree on where the real estate market is trending. The new home sales numbers from the Census Bureau have been moving upward since the middle of last year (with potential revisions in mind) while resale levels from the National…

201505.26
3
0

The Smaller Economy Getting Smaller Still

Durable goods orders declined for the third consecutive month in April, meaning with January’s flat reading that new orders for this important segment of consumer “demand” has been consistently shrinking in all of 2015 so far. New orders for capital goods have been negative year-over-year in all four months. With the pace of shipments just…

201505.26
9
0

Two Years Later: Gold Was Right About The ‘Dollar’ As Economists Should Have Been Far Less Giddy About It All

A little over two years ago, in the middle of April 2013, there was a gold crash that came seemingly out of nowhere. Worse, for gold investors anyway, that crash was repeated just a few months later. Where gold had stood just shy of $1,800 an ounce at the start of QE3, those cascades had…

201505.22
2
0

LIBOR Describes The Exits

In the age of ZIRP it can be difficult to gain perspective especially about interest rate movements. Trying to analyze the ups and downs including any relevance or importance is clouded by the lack of historical clarity on that account. We really have no idea about the true significance of scales at and near the…

201505.22
0
0

BEA Rocks The Fed’s GDP Scapegoating

The FOMC statement this week made a great deal about what amounts to charges of statistical impropriety toward the BEA’s GDP figures. The first quarter always seems to amount to a slow part of the season, which it really is because there is the massive Christmas buildup. It is clear that the Federal Reserve, referring…

201505.22 0

Yellen Puts The ‘Dollar’ Back On Suicide Watch

Volatility in UST trading declined a bit in the past few days, as treasury yields became far more settled intraday. While that breaks the exact duplication Monday and Tuesday this week traced from Monday and Tuesday last week, the past two weeks overall remain remarkably similar. And for all the noise, the ups and downs…

201505.21
2
0

Rebound Gone, Now Attention To Below

Sticking with the sentiment factor for the economy, or at least in mostly unhelpful measurements for it, it is interesting that most of the manufacturing and business sentiment indices are failing to find the FOMC’s “transitory” economic nature. The most helpful so far has been the Chicago Business Barometer, but that merely ticked above 50…