Reader Asks: Why Not Keep Cash Instead Of Parking Euros For Negative Returns?
In response to Financial Wonderland: Reader Questions on Negative Rates and Money Heaven, several readers asked “Why do banks park funds at the ECB for negative returns instead if simply keeping cash?” That’s a question I meant to answer in the above Financial Wonderland link, but let’s answer it now. The two applicable answers are insurance, […]
Zero-Hour For The Precious Metals
Just as the world was breathing a massive and collective sigh of relief that a new bull market in gold and silver had arrived with all the pomp and pageantry of a Royal Wedding, the Barbarians climbed the walls and are now very close to razing the palace, says precious metals expert Michael Ballanger. Yesterday […]
Chinese Industrial Output Grows
We live in a world of spin where any fact, figure, opinion or statement can be altered to appeal to what the Spin Doctor thinks their audience wants to hear. Growth in the Chinese economy has been phenomenal since the Chinese Communist party started its flirtation with capitalism. It is easy to forget that China […]
The One Bank Targets India’s Silver
For several years, readers have seen a steady stream of articles which chronicled and explained the One Bank’s multiple attempts to attack the mammoth gold market of India. These attempts have ranged from the diabolical to the merely comical. Indeed, one of the “comical” aspects as these financial Wile E. Coyotes continue targeting India’s gold market, and […]
Fixed Income Review
Bond markets have made some dramatic moves over the last few weeks and I thought it an opportune time to review. Credit spreads have narrowed considerably over the last few weeks as risk takers have re-entered the markets. High yield, IG corporates and emerging market bonds have all enjoyed significant rallies. It is our judgement […]
BOJ Talks But Doesn’t Act – USD/JPY Slides
The Bank of Japan left its policy unchanged in a meeting that was attended by special guests but yielded nothing. They did talk about acting in the future, but this was far from enough to weaken the yen, especially as they removed the language about further cutting rates into negative territory. USD/JPY rattled and flirted with the 114 level but eventually […]
BOJ Keeps Rates Steady, RBA Minutes Released
The Bank of Japan kept monetary policy steady on Tuesday. After a two-day monetary policy meeting that began on Monday, the central bank maintained its pledge to increase base money at an annual pace of 80 trillion yen ($700 billion). It also left unchanged a 0.1 percent negative interest rate it applies to some reserves […]
Crude Oil Prices May Be Heading Towards Stability
Crude oil prices might have hit rock bottom according to an official report. According to the International Energy Agency (IEA), there are now signs of stability within the oil markets and also cautious optimism for price increases in the near future. According to a report released by the same Agency on Friday, during February there […]
Impending Fed Decision Makes Dollar, Equity Trades Very Risky
Video length: 00:20:47 The Dollar posted a tentative recovery from its key technical break this past week and the climb in risk trends stalled. Whatever designs you have for the trades that are born from those developments should take into account key event risk ahead in the Federal Reserve’s rate decision on Wednesday. The world’s […]
Oil Plunges Back To Draghi Lows
Just as we saw with the stock market following Draghi’s December disappointment dead-cat-bounce, WTI Crude has collapsed back to post-Draghi lows, erasing all the WTF bounce from Friday. The driver – aside from the fact that there was no driver of the ramp – appears to be comments from Emirates Bank on the resilience of US shale […]
