Credit Writedowns

"Basically, with the Fed and the other central banks flooding the world with money, a rising tide lifts all boats." So it's the tightening we have to fear.

What will stop the dollar's sell-off is not officials.  It is not the likelihood of a Fed hike.  Rather the market will exhaust itself. 

Bridgewater Associates' Ray Dalio warned that a rise in bond yields could lead to the biggest crisis in fixed income markets in almost 40 years.

Probably not. As Mnuchin and President Trump have done before, a distinction was drawn between short- and longer-term perspectives.

Big name tech companies are burning through billions of dollars as they try to scale. The promise is that they will one day look like Amazon, dominating markets and sporting massive levels of cash flow to reinvest.

Bridgewater Associates founder Ray Dalio says we are late in the economic cycle and should expect good things from asset markets. But central banks will have a tricky time dealing with the consequences.

If bitcoin and its equivalents can deliver what its champions promise, what’s not to like? Well, the rub is what Economist Abba Lerner said “The modern state can make anything it chooses generally acceptable as money".

If China wants to accumulate reserves, it will have to buy US Treasuries, even if not every month. Japanese institutional investors are thought to be attracted by the high yields available in the US Treasury market.  But, the wider…

Initial claims for unemployment insurance of 220,000 in the week ending January 13 underscore the strength of the US job market. With the 4-week moving average decreasing to 244,500, there is no sign on the horizon of disruption to jobs.

Now that the Trump tax cuts have been passed and US companies have had the opportunity to incorporate the changes into their projections, we are starting to see big payoffs, particularly for banks. This development is supportive of further…