The Poverty of the Wealth Effect
Many of the Fed's recent monetary policy decisions were driven by a belief in the so-called wealth effect that is very likely wrong.
Fed Behind 93% of S&P Rise Since ’08: Economist
“We had our tech bubble, our credit bubble and then our Fed bubble,” says Brian Barnier of ValueBridge.
Investors Try to Ride Out an Improbable Storm
The growing list of improbable developments affecting the markets is indicative of a global system entering a major transition.
4 Reasons to Cheer the January Jobs Report
January's report offers good news for the economy and should cheer financial markets, if they can look beyond their obsession with central bank liquidity support.
Central Banks Save the Markets Again — Searching for Alpha for February 2016
Have the markets become a drug addict, waiting for the next easy-money hit in order to function?
This Year's Asset Class Winners, Losers: Searching for Alpha for January 2016
What will be the fundamental drivers of asset class returns in higher-rate 2016?
Higher Rates May Cut Small-Business Borrowing Costs: Searching for Alpha for December 2015
Nonbank lenders, aka shadow banks, account for 26% of all loans to small businesses. Will higher rates get actual banks back in the lending business?
Don’t Fear the New Boss at the Minneapolis Fed
For one thing, former Treasury official Neel Kashkari isn’t a liquidationist, despite what Paul Krugman thinks.
Can Treasuries and Bunds Keep in Lockstep?
It is likely that the continued gradual healing of the U.S. economy will pull yields in one direction while the likelihood of expanded ECB balance sheet operations will pull in the other. The result is likely to be greater volatility.
Now Comes the Hard Part for Greece
Friday’s accord was necessary but far from sufficient. The larger challenges ahead to resolve the Greek crisis will be far more difficult to overcome.