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natural rate of interest

Discount Bubble Check

By |2015-06-12T16:33:29-04:00June 12th, 2015|Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

Yesterday was the quarterly release of the Financial Accounts of the United States (Z1), formerly titled as the Flow of Funds, which means we get updates on the asset bubbles through Q1. That starts with equity valuations, with the components to Tobin’s Q being revised all over the place. The Q ratio is made up of the total value of equity [...]

Rather Than All Efforts Aimed At Making Central Banks More Efficient

By |2015-05-27T16:35:01-04:00May 27th, 2015|Economy, Federal Reserve/Monetary Policy, Markets|

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 or of 18 different pairs [...]

Stagnation Confirmation

By |2014-08-22T11:59:37-04:00August 22nd, 2014|Economy, Federal Reserve/Monetary Policy, Markets|

Janet Yellen has essentially confirmed QE’s demise; good riddance. Unfortunately, I don’t think that is the final end of QE in America, just as it hasn’t been the end time after time in Japan (and perhaps now Europe treading down the same ill-received road). What’s interesting is really watching these central bankers talk themselves in circles about why that is. [...]

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