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eurdollar

If You Believe There Was Too Much Money During The Monetary Panic, Then Why Not Heroin

By |2017-03-06T16:31:34-05:00March 6th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

November 2008 was an extremely busy month for authorities in the US. The financial markets had just undergone panic the month before, but rather than dissipate there were lingering indications that all was not yet over. On November 23, 2008, the Treasury Department, the FDIC, and the Federal Reserve issued a joint statement on Citigroup. The first two had agreed [...]

Way Past Humpty Dumpty

By |2017-02-03T17:51:41-05:00February 3rd, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The most basic link in finance is that between risk and reward. Just like alchemists who once sought a path to gold from lead, a great deal of modern finance was built around finding a shortcut between them. Discovering the great asymmetry where risks would be low but rewards sky high was the Holy Grail of later 20th century mathematics. [...]

Review 2011: The Trajectory of Official Views On Repo Confirms A Lot (And Raises Other Questions)

By |2017-01-31T17:46:37-05:00January 31st, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The release of the 2011 FOMC transcripts has provided some useful clarity on the thinking of Federal Reserve officials. Unlike in 2008, policymakers were a little better acquainted with wholesale money and its possible points of failure. They never did solve or even identify all of them, of course, but the repo market in particular seems to have finally been [...]

Far Beyond Oil; Wholesale Imbalance Extends to Extremes In Autos

By |2015-10-09T13:36:56-04:00October 9th, 2015|Economy, Federal Reserve/Monetary Policy, Markets|

What is taking place on the wholesale level of the supply chain is simply unprecedented. Admittedly, the current iteration of the wholesale data series only dates back to 1992, so there is some possibility of a similar disparity at some point in actual economic history. However, at present, inventory continues onward with only a slight deviation and slowing recently while [...]

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