quantitative easing

I am more cautious than optimistic on risk assets and the global economy. From where I sit global growth prospects are not improving; they are weakening.

As Jon Hilsenrath pointed out in Thursday’s Wall Street Journal Bernanke has already indicated that the hurdle to more quantitative easing is very high. This is not to say that QE3 is off the table forever. But QE3 will only become a…

Niels Jensen clears up a number of common misconceptions about the macroo environment which whave great importance for investing.

While the tightening of global financial conditions is likely in part a trigger for the recent unwind of positioning, the de-leveraging of this extended positioning in equities, commodities and currencies, therefore, is the likely the cause…

So, the Fed has basically just announced it will stop QE2. It will then start selling Treasuries. And remember, this is at the same time the Treasury is selling $10 billion a month in mortgage securities. Only after this will rates be…

Frederick Sheehan argues that we are overleveraged, undercollateralized, and accentuating these unsustainable imbalances through economic policy to smooth out volatility.

Barron's Roundtable member Felix Zulauf spoke to the German-language Handelsblatt about the European sovereign debt crisis and financial markets in an article published today. Like Jeremy Grantham, he has turned bearish. Below is my…

I spoke to Tadas Viskanta of Abnormal Returns on StockTwits TV about a lot of different issues this past week. We discussed commodities, bond market, QE, tech stocks, and a lot more. Here's the video below.

QE is, in fact, a ‘crop failure’ for the dollar. The Fed’s shifting of securities out of the economy and replacing them with clearing balances removes interest income. And the lower rates from Fed policy also reduces interest paid to the…

Banks are never constrained by reserves or reserve ratios. Banks are capital constrained. In our fiat money system, the central bank uses reserves in the system to help the Federal hit a target interest rate. So, the central bank provides…