It is always a pleasure to talk with the Richard Bonugli at the Financial Repression Authority. Like Anthony Cruedele of Futures Radio, Richard is a very astute financial mind, which allows for deep discussions in a longer format. We cover several issues discussed in Notes From Underground so I’m sorry if it seems redundant, but I will say that we take a deeper dive on the issues. The segment taped on Wednesday, January 10 so from a trading perspective the information may be stale. But from an investors’ perspective it will still be relevant as the markets begin to unravel the mysteries of a new year. We dive deeper into Europe as I am certain the continent will provide much of the tinder for market volatility in 2018. This weekend proved the case as several stories from Europe propelled the DOLLAR lower as U.S. markets were on holiday for Martin Luther King Jr.’s birthday.
Posts Tagged ‘SPD’
Notes From Underground: A Financial Repression Authority (FRA) Podcast With Peter Boockvar
February 12, 2017It is a great honor to feature another podcast with Peter Boockvar for The Financial Repression Authority. Peter is certainly one of the regular commentators that I watch with great interest whenever he is on Bloomberg, Fox Business or CNBC. I think we cover much of the global financial landscape. While it may run long, it is a lot easier than reading a 20,000-word blog post. Pour the scotch and give it a listen.
Notes From Underground: More Questions Then Answers … Tapering Foreshocks
November 12, 2013The fools are alive with the sound of tapering. There’s a constant drone of the CNBC crowd that the fear of Fed tapering has sent emerging markets to nine straight days of losses. While the emerging markets have been responding negatively to tapering, the developed markets have been making new highs. So it seems that the FED removing liquidity will be far more detrimental to the emerging markets than to the developed world’s equity markets. A quick snapshot of the tales of two markets reveals the divergence taking place in the global financial markets. The Mexican ETF EWW is down 12% on the year while the S&Ps are up 27%. Yet, the Mexican economy is heavy dependent on the U.S. market for a large percentage of its exports. If the U.S. consumer is healthy enough to help the U.S. equities to a solid gain on corporate profits, how can the Mexican financial markets be so negatively divergent? It is not only the issue of economic growth but also the health of the overall financial system.
Notes From Underground: The Outcome of Jackson Hole … It’s All Theoretical
August 27, 2013At Jackson Hole there was no Ben Bernanke so therefore no policy announcements as in August 2010 when the famous PORTFOLIO BALANCE CHANNEL (PBC) speech signalled a major shift in Fed policy. Last year was similar as the Fed Chairman used Jackson Hole to alert the market to another round of QE. The most senior Fed official was Janet Yellen and she served more as a panel moderator. This was no place to stake out Vice Chairman Yellen’s claim to the chairmanship. So the discussions of the week were as always, esoteric and academic. But the key take away: There were several papers delivered by acclaimed academics who disagreed with the FED‘s policy of large-scale asset purchases and quantitative easing. Therefore, the conclusion is that the FED‘s present policy is highly theoretical and not based on a SCIENTIFIC proof and the entire basis of QE is open to critical analysis. The talking heads want to believe that TAPERING has a certain outcome. By definition, theoretical outcomes are theoretical and based on probabilities.
Notes From Underground: Irony of Ironies … In the Land of Fiscal Austerity and Budget Cutting Circumcision is Outlawed
August 13, 2012The news is so slow that some ridiculous headlines just creep in, but I wonder what the Greeks think. If the fiscal sheriffs from the TROIKA only took the tip it wouldn’t have been so bad but the German creditors took the entire reproductive assemblage. Ok, enough. New word out of Germany is that a Berlin-based think tank has filed a new case against the legality of the ESM but is asking the Federal Constitutional Court to allow the EUROPEAN COURT of JUSTICE (ECJ) to hear the case and decide if the stability mechanism is legal under EU law. The Eurosceptic group EUROPOLIS is asking for European to determine the legal status of any European bailout program.
Notes From Underground: MAY 6 — A Flash Crash For the European Political Elite
May 6, 2012Notes From Underground: A Visit to February 5 (Sometimes A Reminder Is Necessary To Clear The Stain Of Bad Execution)
March 15, 2012The world is carrying on in its design of vast pools of liquidity in a “sea of tranquility” … for the moment. Are Europe’s problems solved as the FRENCH ROOSTER Nicholas Sarkozy has crowed? Absolutely not. The travails of debt plagued economies will begin for the nations living on the IBERIAN PENINSULA. As I have argued for a long time in this BLOG, Spain is a far worse problem then Italy but Italian BONDS suffered as they were the only FUTURES HEDGE AVAILABLE FOR THE PROBLEMS OF THE GIIPS.
Notes From Underground: The European Union KICKS GEITHNER’S CAN DOWN THE ROAD
September 18, 2011Friday and Saturday were the days that U.S. Treasury Secretary Geithner was in Poland sitting in on an ECOFIN meeting to try to persuade the financial policy makers of the EU to come to some type of resolution on a bailout of the PIIGS, an increase in the European Financial Stability Facility, and, hopefully, some program of support for the recapitalization of the European banking sector. Geithner pressed the ECB and European Governments to increase the 440 billion EURO EFSF rescue fund by utilizing leverage in its buying of sovereign debt. The tone of Geithner’s message was that the U.S. has woken up to the huge threat the EU debt crisis poses for the American economy, and, of course, President Obama’s election chances. Mr. Geithner warned that the EU crisis was a “CATASTROPHIC RISK TO FINANCIAL MARKETS.” He advised that the conflict between European governments and its central bank must end.