Foxx Posted September 22, 2019 Share Posted September 22, 2019 On 9/21/2019 at 9:19 AM, TPS said: As I've said here many times, there is no economic reason for the Fed to reduce its balance sheet, it's a philosophical issue related to intervening in markets. Yes, the Fed will have to start expanding again, for many reasons. what is currently going on can be termed, as bail-ins. Link to comment Share on other sites More sharing options...
Deranged Rhino Posted September 23, 2019 Share Posted September 23, 2019 https://www.apple.com/newsroom/2019/09/apples-new-mac-pro-to-be-made-in-texas/ 2 Link to comment Share on other sites More sharing options...
Deranged Rhino Posted September 25, 2019 Share Posted September 25, 2019 2 Link to comment Share on other sites More sharing options...
Deranged Rhino Posted September 25, 2019 Share Posted September 25, 2019 2 2 Link to comment Share on other sites More sharing options...
TPS Posted September 25, 2019 Share Posted September 25, 2019 On 9/23/2019 at 12:55 PM, Deranged Rhino said: https://www.apple.com/newsroom/2019/09/apples-new-mac-pro-to-be-made-in-texas/ Apple will continue to produce its Mac pros in Texas, but it was going to shift production out of Texas until the administration decided to provide tariff waivers on the Chinese parts that supply the Mac pro. Link to comment Share on other sites More sharing options...
TPS Posted September 25, 2019 Share Posted September 25, 2019 The Fed will increase its daily intervention to $100 billion in the repo market and probably for the rest of the year... https://www.wsj.com/articles/fed-adds-75-billion-to-financial-system-in-latest-transaction-11569416576 Link to comment Share on other sites More sharing options...
GG Posted September 26, 2019 Author Share Posted September 26, 2019 3 hours ago, TPS said: The Fed will increase its daily intervention to $100 billion in the repo market and probably for the rest of the year... https://www.wsj.com/articles/fed-adds-75-billion-to-financial-system-in-latest-transaction-11569416576 Too many Treasuries and not enough cash in the system? Must be a problem with reserve accounting rules. Link to comment Share on other sites More sharing options...
TPS Posted September 26, 2019 Share Posted September 26, 2019 10 hours ago, GG said: Too many Treasuries and not enough cash in the system? Must be a problem with reserve accounting rules. The Fed is simply doing what it always does, ensuring the daily liquidity needs of the payment system. On a daily basis, it meets any demand for bank reserves in order to maintain its FFR target, and now it ensures any demand for liquidity in the repo market so that the arbitrage connection is maintained between the two rates. The glitch had as much to do about meeting regulatory liquidity needs imposed on the "globally systemic important financial institutions" than anything else. Reserve accounting is simply how it "pays" for any asset it buys. You need to take my money and banking course....? Link to comment Share on other sites More sharing options...
GG Posted September 26, 2019 Author Share Posted September 26, 2019 21 minutes ago, TPS said: The Fed is simply doing what it always does, ensuring the daily liquidity needs of the payment system. On a daily basis, it meets any demand for bank reserves in order to maintain its FFR target, and now it ensures any demand for liquidity in the repo market so that the arbitrage connection is maintained between the two rates. The glitch had as much to do about meeting regulatory liquidity needs imposed on the "globally systemic important financial institutions" than anything else. Reserve accounting is simply how it "pays" for any asset it buys. You need to take my money and banking course....? So I can learn an operating manual that gets tossed out the window when the markets don't follow the central banks' desire? The repo mess is the perfect illustration of a mismatch of "currencies" (or more properly assets) - too much paper and not enough cash. In your mind and I'm guessing in the course, they're one and the same. Link to comment Share on other sites More sharing options...
TPS Posted September 26, 2019 Share Posted September 26, 2019 3 hours ago, GG said: So I can learn an operating manual that gets tossed out the window when the markets don't follow the central banks' desire? The repo mess is the perfect illustration of a mismatch of "currencies" (or more properly assets) - too much paper and not enough cash. In your mind and I'm guessing in the course, they're one and the same. The markets do what they do, and the Fed do what it do....be do be do..... It doesn't matter what the cause of the repo flare up was, the point is that the FED can always provide enough liquidity to meet its targets. Whether it's global pressure for dollars or domestic. If you think you can bet against the Fed, then go ahead and give it a try.... Link to comment Share on other sites More sharing options...
GG Posted September 26, 2019 Author Share Posted September 26, 2019 2 hours ago, TPS said: The markets do what they do, and the Fed do what it do....be do be do..... It doesn't matter what the cause of the repo flare up was, the point is that the FED can always provide enough liquidity to meet its targets. Whether it's global pressure for dollars or domestic. If you think you can bet against the Fed, then go ahead and give it a try.... The operative word is that the Fed will always TRY to intervene in the markets to stabilize things. But when markets go haywire, it will be powerless. Which brings us a full circle in how the markets are far more powerful in determining prices and rates than any central bank. Link to comment Share on other sites More sharing options...
TPS Posted September 26, 2019 Share Posted September 26, 2019 55 minutes ago, GG said: The operative word is that the Fed will always TRY to intervene in the markets to stabilize things. But when markets go haywire, it will be powerless. Which brings us a full circle in how the markets are far more powerful in determining prices and rates than any central bank. The Fed can't stop meltdowns in markets they don't officially target, of course. They will do whatever is necessary to maintain their FFR target, and now the repo rate, though it's not formal..... yet... Link to comment Share on other sites More sharing options...
Foxx Posted September 27, 2019 Share Posted September 27, 2019 is NIRP far off? Link to comment Share on other sites More sharing options...
B-Man Posted September 28, 2019 Share Posted September 28, 2019 Trump economy ‘killing it with union workers,’ the ‘opening’ to women, independents. The humming economy is not only boosting support for President Trump among union workers, Hispanics, and even Amazon shoppers, but it is his pathway to bringing in new voters, especially skeptical women and independent voters. In a polling deep-dive of the electorate provided to Secrets, Zogby Analytics found that the economy is Trump’s best ally in the 2020 election and an impeachment buffer. Pollster Jonathan Zogby also found that it is edging Trump’s 48% approval rating higher than the one former President Barack Obama had at this stage in his presidency. Which is amazing, given that the press was unabashedly cheerleading for Obama, and has had the knives out for Trump since Day One. . 2 1 Link to comment Share on other sites More sharing options...
TPS Posted October 1, 2019 Share Posted October 1, 2019 Manufacturing isn’t humming... Link to comment Share on other sites More sharing options...
ALF Posted October 2, 2019 Share Posted October 2, 2019 America's factories are getting crushed by Trump's trade war, not the Fed https://www.cnn.com/2019/10/02/business/manufacturing-trade-war-trump-fed/index.html Link to comment Share on other sites More sharing options...
TPS Posted October 2, 2019 Share Posted October 2, 2019 1 hour ago, ALF said: America's factories are getting crushed by Trump's trade war, not the Fed https://www.cnn.com/2019/10/02/business/manufacturing-trade-war-trump-fed/index.html It's fake news! The liberal MSM is simply trying to talk the economy into recession. Or it's Powell. Or it's... Link to comment Share on other sites More sharing options...
TPS Posted October 4, 2019 Share Posted October 4, 2019 Kind of interesting to see how two major financial publications portray the employment numbers... Bloomberg: Economics U.S. Payrolls and Wages Miss Estimates in New Sign of Downshift WSJ: U.S. Adds 136,000 Jobs as Unemployment Rate Hits A Half-Century Low 1 Link to comment Share on other sites More sharing options...
Buffalo_Gal Posted October 5, 2019 Share Posted October 5, 2019 On 10/4/2019 at 5:40 PM, TPS said: Kind of interesting to see how two major financial publications portray the employment numbers... Bloomberg: Economics U.S. Payrolls and Wages Miss Estimates in New Sign of Downshift WSJ: U.S. Adds 136,000 Jobs as Unemployment Rate Hits A Half-Century Low CNBC also has a (fairly) positive spin:September unemployment rate falls to 3.5%, a 50-year low, as payrolls rise by 136,000 The jobless rate in September dropped 0.2 percentage points to 3.5%, the lowest since December 1969. Nonfarm payrolls rose by 136,000 in September, below the 145,000 forecast by economists polled by Dow Jones. However, past numbers were revised higher. August was revised up to 168,000 from an initial estimate of 130,000, while July was increased to 166,000 from 159,000, for a net gain of 45,000. Wages rose just 2.9% for the year, the lowest increase since July 2018. Link to comment Share on other sites More sharing options...
Chef Jim Posted October 5, 2019 Share Posted October 5, 2019 6 hours ago, Buffalo_Gal said: CNBC also has a (fairly) positive spin:September unemployment rate falls to 3.5%, a 50-year low, as payrolls rise by 136,000 The jobless rate in September dropped 0.2 percentage points to 3.5%, the lowest since December 1969. Nonfarm payrolls rose by 136,000 in September, below the 145,000 forecast by economists polled by Dow Jones. However, past numbers were revised higher. August was revised up to 168,000 from an initial estimate of 130,000, while July was increased to 166,000 from 159,000, for a net gain of 45,000. Wages rose just 2.9% for the year, the lowest increase since July 2018. But his was in much bigger font so his is is more accurate. Link to comment Share on other sites More sharing options...
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