201410.20
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Back to Sleep

The reason I have been characterizing the ECB’s actions since this summer as “desperate” is entirely due to the fact they are simply redoing things and expecting everyone to simply assume they are acting anew. That may not be entirely the case with their obsession with Eonia (more on that below), but narrowing the corridor…

201410.20
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Maybe IBM Should’ve Bought The Whole ‘Cloud’ Rather Than Itself

IBM blames the cloud for its dismal results, but the fact is that IBM should own the cloud outright (figuratively, of course). If the business has changed so much in the past few years due to customer shifting, then why wasn’t IBM leading that process? Why are they now actually admitting what amounts to a…

201410.19
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Was That It?

Stocks fell last week for the fourth week in a row and there was the whiff of panic mid-week. Despite that losing streak the S&P 500 is only 6% from its all time high but the pain for the leveraged investing crowd (the misnamed “hedge” funds) appeared to hit a crescendo last week – at…

201410.17
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No Hiding From Credit Now

Yesterday, in the wake of some intense credit market drama, St. Louis Fed President James Bullard acknowledged the obvious. Quoted in the Wall Street Journal, Bullard showed just how upside down these “markets” have become. “Inflation expectations are dropping in the U.S., and that is something that a central bank cannot abide,” Mr. Bullard said….

201410.17
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Liquidity Discrepancies Are Not A Particularly Welcome Signal

My colleague Joe Calhoun noted that the Wall Street Journal has documented further anecdotes about the credit market illiquidity this week. Corporate-bond investors have struggled this week to find trading partners for some large orders, causing unusual price drops and raising concerns that trading could freeze in future market turmoil. “Buyers just disappeared” early Thursday…

201410.17 0

Tangled Web Of The Asian Dollar And The Implications Of Altered Central Bank Thinking

The PBOC continues along with its path of “targeting” liquidity rather than “flooding” as has been done in the past. Expectations for Chinese action, however, seem to be resistant to getting that message. This is not something that is just now being applied, as if a sudden and unanticipated change in thinking. The entire default…

201410.16
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Another Reminder Gold Is Not Often As It Seems

The problem with being long gold, or even a fan of gold as anathema to central bank “flexibility” in central planning, is that you are often reminded the messiness of its modern nature. Gold as money, properly understood, meant money as property which is why physical metal fit so well for maybe all of “civilized”…

201410.16
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The Very Real Potential For Asymmetry

While the mainstream focus continues to be on stocks, which will probably always be the case, there are perhaps more important factors to consider in other “risky” places. The burst of buying in UST’s yesterday was not done in a vacuum and I don’t believe it was related to the simplistic idea of stock investor…

201410.15
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What A Morning

An unbelievable morning of credit market trading has at least seen some semblance of “market” forces return by the afternoon. One aspect is certain, that the open was about as illiquid as the treasury market has seen in a long, long time. We should not make the mistake of illiquidity being only associated with selling,…

201410.14
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Embrace Japan, It Is Nearly Here

With a grim reality setting in for at least a temporary interruption to the euphoria, that background of a QE-less world takes hold. Without any real recovery to show for all the manipulations and intrusions, a global reality, there are none but stock prices (aside from a few confused PMI’s) to record on the “benefits”…