Found 534 search results for keyword: label

Great Graphic: Possible Head and Shoulders in Dollar-Yen

The dollar has broken down against the yen.    Although many talk about safe haven role for the yen, this seems to be a misconception.  Investors are not buying the yen to escape the turmoil of the markets.   The yen's strength itself is th...

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Great Graphic: The Euro Touchstone

This Great Graphic is a favorite of mine.   Created on Bloomberg, it depicts the 2-year spread between Germany and the US on two-year money (white line) and the euro-dollar exchange rate (yellow line).  The chart covers the past five years. The scales of the two time series are different so it makes little sense to … Continue reading...

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Tuesday’s Highlights

1.  China's Central Economic Work Conference is responsible for setting the annual GDP target. Although it was not formally announced, President Xi previously indicated that the goal for the economy to expand by around 6.5% a year through 2020.  More telling than the GDP target is the intentions expressed in the new slogan:  flexible monetary policy, …

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Janet Yellen Lit the Fuse Report 20 Dec, 2015

The prices of the metals were sagging. Silver was trading around $13.80. On Wednesday, Janet “Good News” Yellen said the magic words. The Federal Reserve hiked the federal funds rate by 25 basis points. The price of silver was surging in anticipation...

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Great Graphic: Visualizing the Refugee/Asylum Seekers in Europe

The Greek crisis that dominated the European discussion in the first half of the year was barely ending when attention turned to the refugee problem.   While it often seemed that all of Europe was united against Greece, the refugee problem is si...

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Great Graphic: US Bill Yields and Fed Hikes

There are many investors and observers who do not think the Fed ought to raise interest rates today.   The Fed's targeted inflation measure, the core PCE deflator, stood at 1.3%, well below the 2% target.   They see the fresh sell-off in oil prices and are more concerned disinflation than inflation.  Over the past week or so, …

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Great Graphic: US Equities in December

This Great Graphic shows how different measures of US equities perform in December by day for the past 20 years.  I got it as a tweet from Urban Carmel, who got it from the Stock Almanac.   Today is eleventh session of the month.  Equities typically rallied starting now in December.   Since 1994, the S&P … Continue reading...

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Great Graphic: Large Yuan Devalution in 2016?

Following the mini-devaluation in August, the yuan appreciated in September and October.  It began depreciating again in November and this has continued through the first half of December.   The dollar finished the local session at new multi-year highs against the yuan.  Many observers see in the pre-weekend announcement about monitoring the yuan against a basket …

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Great Graphic: Euro Forecast by Global Banks

The dollar-euro is the most actively traded currency pair in the world.  It is often what is meant when people ask where is the dollar trading.   Dollar bullish sentiment prevailed in 2015, but many large banks doubt that it will continue in 2016.  This Great Graphic from the Wall Street Journal shows the euro forecasts … Continue...

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Great Graphic: A Divergence that Gives China a Headache

China was instructed by the IMF that as an operational requirement for joining the SDR that the gap between the onshore and offshore yuan (CNY and CNH respectively) needed to close.  This was important for central banks to hedge.  The opposite is taking place. That is what this Great Graphic, created on Bloomberg depicts. The …

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Great Graphic: Divergence is Still the Euro Driver

This remains one of my favorite Great Graphics that illustrate the divergence theme that I think is the main driver of the euro-dollar exchange rate.  Composed on Bloomberg, it shows two time series.  The first (white line) shows the German two-y...

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Great Graphic: Canadian Growth and Rate Expectations

Canada reported its monthly GDP estimate for September, and at the same time, provided its first estimate of Q3 GDP.   The Great Graphic, created on Bloomberg, shows both time series. The monthly GDP is depicted by the yellow line and the quart...

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Great Graphic: Decline of U.S. Participation Rate Explained

The decline in the labor force participation rate helps explain the substantial decline in the US unemployment rate over the past couple of years.  That decline has helped bring the Federal Reserve to the point that a December rate hike is thought to be extremely likely barring a significant disappointment at the end of the …

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Great Graphic: US 2-Year Premium over Japan and Germany

This Great Graphic was composed on Bloomberg.  It shows two time series.  The yellow line shows the premium the US pays over Germany for two-year money.  The white line shows the premium the US pays over Japan for two-year money.   The premiums have risen sharply since mid-October and today are at new multi-year highs. … Continue...

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Great Graphic: Canadian Dollar and the Two-Year Rate Differential

The Canadian dollar is more than a petro currency.    It is also subject to the same forces of divergence that have lifted the US dollar more broadly.  Since the beginning of the year, the US two-year yield has risen 26 bp while Canada's two-year yield has fallen almost 39 bp. This Great Graphic, created on …

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Pure Gold and Soggy Dollars

We’re going to be introducing some new formats. One of them is quick article links, with the good ones labelled Pure Gold and the bad ones labelled Soggy Dollars. Pure Gold When a Fed-induced boom turns to bust: “In the lynch-mob....

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Repo and Repo Markets

Figure 1: Repurchase agreement


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How Could the Fed Protect Us from Economic Waves?

Mainstream economists tell us that the Federal Reserve protects us from economic waves, indeed from the business cycle itself. In their view, people naturally tend to go overboard and cause wild swings in both directions. Thus, we need an economic central planner to alternatively stimulate us and then take away the punch bowl. The very idea of centrally planning money and credit boggles the mind.

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What Happens When Credit Is Mispriced?

Keith Weiner explains what happens when credit is mispriced. The rich are privileged because they can profit on the volatility and the bubbles the cheap credit createes.

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Steve Keen Steering the Greek Hedge Fund into the Minsky Moment #Tsiprasfacts



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