Category Archives: Monetary Policy

Euro slumps on ECB Draghi’s comments

Posted on February 7, 2013 by macromon

“Exchange rate is not a policy target, but it is important for growth…”   – Mario Draghi (click here if video is not observable)

Posted in Euro, Monetary Policy | Tagged , , , | 5 Comments

The Fed and Credit Rationing

Posted on January 30, 2013 by macromon

John Taylor’s piece in the WSJ yesterday noted, So if investors are told by the Fed that the short-term rate is going to be close to zero in the future, then they will bid down the yield on the long-term … Continue reading →

Posted in Interest Rates, Monetary Policy | Tagged , | Leave a comment

Federal Reserve Assets Top $3 Trillion

Posted on January 24, 2013 by macromon

The Fed’s balance sheet just topped $3 trillion for the first time ever according to the Wall Street Journal, The U.S. Federal Reserve‘s balance sheet topped $3 trillion for the first time as the central bank continued with its easy-money … Continue reading →

Posted in Monetary Policy | Tagged , , , | 4 Comments

Most Overbought and Oversold Markets

Posted on January 13, 2013 by macromon

Asia x/Japan equities began to to work off overbought conditions. Japan’s Nikkei continues to reprice higher on weaker yen. Italy’s MIB and Spain’s IBEX experiencing the “positive contagion”  from Eurozone sovereign spread compression and now approaching an 80 RSI. Profit … Continue reading →

Posted in Monetary Policy, Technical Analysis | Tagged , , , | 2 Comments

Would A Trader Buy This Chart?

Posted on January 10, 2013 by macromon

Note the bottoming of the M1 money multiplier after its long secular decline.  The multiplier is effectively the ratio of money created by the banking system (deposits) vs. money created by the central bank (reserves). It collapsed and fell to … Continue reading →

Posted in Monetary Policy | Tagged , | 4 Comments

Tweet of the Day: Slouching Toward Weimar

Posted on January 7, 2013 by macromon

Clay Aiken, U.S. musician and American Idol, tweets: The meme is now in the popular culture.   Troubling.

Posted in Monetary Policy | 11 Comments

Excess Reserves Declining

Posted on January 7, 2013 by macromon

Keep this one on your radar.   Excess reserves of depository institutions are beginning to decline,  down $183 billion, or 11.3 percent,  from their peak in November 2011 This is where much of the Fed’s money printing or balance sheet … Continue reading →

Posted in Monetary Policy | Tagged , , , | 12 Comments

VIX Has Largest Weekly Down Move Since Inception

Posted on January 5, 2013 by macromon

The CBOE has a nice piece out noting this week’s 39.1 percent collapse in the VIX was the largest weekly percent down move since the index was launched in January 1990.  The week also saw record volume days for the … Continue reading →

Posted in Global Stock Performance, Monetary Policy, Sovereign Debt | Tagged , , , | 4 Comments

Repressed Fear

Posted on December 19, 2012 by macromon

This nice chart comes to us from the  Leuthold Group via Bloomberg.   It illustrates that market fear or risk aversion is at its lowest levels since the 1980’s!  Yikes! The Leuthold Group constructs their Risk Aversion Index (RAI) with a … Continue reading →

Posted in Equities, Fiscal Cliff Monitor, Fiscal Policy, Monetary Policy | Tagged , | 1 Comment

Bank of Japan Eases

Posted on December 19, 2012 by macromon

Bank of Japan announced this morning it would increase its Asset Purchase Program by 10 trillion yen, from 91 trillion to 101 trillion yen. They split evenly, buying 5 trillion in T-Bills and 5 trillion in JGBs.  The Bank released … Continue reading →

Posted in Japan, Monetary Policy | Tagged , , | 3 Comments