We have moved from "strong vigilance" to "monitor very closely". It’s certainly a softer statement than many (including myself) thought. Euro off and Bunds higher seem the obvious first response. But that said, the ECB is not shy about stating that interest rates...
The single most important market event this week will be JCT’s press conference tomorrow morning. Will he say “strong vigilance” again? Will it be just “vigilance”? Or will we be treated to some new language concept just to obfuscate things further? Also, we will get...
For those that never saw the movie Napoleon Dynamite, today’s title may be confusing. This movie is an American “cult classic” about some quirky teenagers (Napoleon and Pedro) that run a campaign for high school class president against the very popular Summer...
I have been away from the screens since Tuesday last week. It was quite nice to get a little R and R time on the powdery slopes before my marketing trip through Paris, London, Stockholm and Madrid commences this week. It was also nice to step away from the hysterical...
If the US Treasury issued overnight T-bills and bought 30 year MBS it would be no different than the Fed buying 30 year MBS for cash and paying interest on excess reserves. When it comes to balance sheet expansion (or contraction) at the zero interest rate bound,...
I spoke with a number of economists whose opinion I value highly since the PPI and CPI releases last week. These are folks who were NOT looking for any material upside risks to inflation in the coming quarters (or years frankly). Their song seemed to be changing after...
I spoke with a number of economists whose opinion I value highly since the PPI and CPI releases last week. These are folks who were NOT looking for any material upside risks to inflation in the coming quarters (or years frankly). Their song seemed to be changing after the data releases. And rightfully so I […]
