From a purely, detached analytical perspective it is highly fascinating the possibility of observing a liquidity “development” in almost realtime whether one develops or not. If past patterns hold, and there isn’t any specific expectation for that other than heightened probability due to systemic recurrence, then April 15 is a target point for the next one in the series. This [...]
For my mind there are two actual explanations for tapering QE, neither of which follows the mainstream idea that the economy has gained sufficient “footing.” That provides the cover by which QE’s taper can be sold while preserving “credibility”, but it does not line up with anything else outside of the straightest line in the Establishment Survey. Instead, tapering is [...]
Joe Calhoun recently noticed a bit of a structural shift taking place in the repo market, and he was right to point out the Fed’s role in the process. QE 3 has caused some of the usual “unforeseen” and unintended consequences that ripple through wholesale money markets. I have been highlighting a related drop in swap spreads, particularly the 10 [...]
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