The Mess That Greenspan Made - Part 11

China and the Fed

The Federal Reserve brain trust must be rolling their eyes at the latest market turmoil resulting from China’s currency devaluation – first Greece, now China.

Keen on notching that first rate increase in about a decade, lest they be accused of leaving rates “too low for too long” again amid more “Fed-bubble machine” accusations, they are now growing more fearful of repeating the European Central Bank’s 2011 error when they raised short-term rates on nascent signs of inflation, only to reverse course months later.

Here’s Art Cashin’s take on the situation:

There’s nothing worse than a central bank that makes a bad situation worse and the trade-off here is whether the Fed’s action or inaction results in a near-term market crash or bigger asset bubbles later. My guess is that it will be the former combination.

Tagged with:  

Wednesday Morning Links

China’s currency falls for a second day – BBC
China woes complicate Fed rate plans – USA Today
And the Bloodletting Begins… – Capitalist Exploits
Currency Move by China Clouds Its Policy Goals – NY Times
YChina’s Free-Market Resolve Tested as PBOC Intervenes – Bloomberg
What China’s Devaluation Means to the U.S. Economy – Wall St. on Parade
China’s Currency Devaluation: Fodder For Gold Bulls? – Barron’s
SocGen: Prepare for overwhelming ‘waves of deflation’ – Business Insider
Donald Trump slams Beijing for crashing the yuan – CNN/Money
Can Donald Trump win? John Oliver vs. Anderson Cooper – The Week
Bernie Sanders surges ahead of Hillary Clinton in N.H. – Boston Herald
Asset-Price Inflation Enters Its Dangerous Late Phase – Mises

Global market sell-off intensifies – AP
OPEC just kicked oil into the $30s – CNBC
Dow’s Wild Swings Are Giving Traders a Headache – Bloomberg
Global stocks sink as China’s yuan falls for second day – USA Today
Until It Institutes Reforms, China’s Markets Will Be Deformed – RCM
Gold hits 3-week top on lower dollar, shares after China devaluation – Reuters
Why Silver Coin Premiums Rise Amid A Falling Silver Price – GoldSilverWorlds
Why Chinese devaluation is a magic catalyst for the gold price – Arabian Money
Chinese fears send gold price to 3-week high –
Chinese gold production surges – Mineweb

Competitiveness and Class Warfare – Krugman, NY Times
Sputtering Worker Productivity Vexes Economy – WSJ
Why China may be on the brink of recession – MarketWatch
Moody’s cuts Brazil rating but says investment grade is safe – Reuters
Brazil’s Political Crisis Has Created A Bottomless Pit For Economy – Forbes
Greek debt sustainability: The devil is in the tails – voxeu
Home Prices Soar in Some Metro Areas – WSJ
Cashin: 2015 hike is still out of the question – CNBC
How Much More Faith In Central Banks Is Left? – Zero Hedge
Will the Fed Delay Rate Hike After China Shock? – Barron’s


China Acts

China’s relatively modest currency devaluation appears to be the top news story of the day and, so far, equity markets are not taking it well – here’s why they did it.

Precious metals investors, on the other hand, have embraced the news since, like the Swiss bank action to remove the euro-peg from the franc some time ago, it comes across as one more sign that the global currency regime has an expiration date.

Tuesday Morning Links

China devalues yuan to boost flagging economy – Guardian
Yuan devaluation raises new currency war anxiety – Reuters
China’s shadow banking sector collapsed in July – Financial Times
China, Hong Kong shares choppy as yuan devaluation digested – SCMP
China “Loses Battle Over Yuan”, Global Currency War Begins – Zero Hedge
5 Things to Know About China’s Currency Devaluation – WSJ
Greece says bailout deal broadly agreed – BBC
Greece’s Aid Addiction – Project Syndicate
Targets of Greek bail-out deal branded ‘fantasy’ – Telegraph
Stop Financializing the Human Experience – of two minds
What the Heck Did Google Just Do? – Fiscal Times
Donald Trump and Fox strike a truce – Politico

Global stocks, Asian currencies fall as China devalues yuan – AP
Is There a Dark Side to Exchange Traded Funds (ETFs)? – WSJ
Stock Buybacks Draw Scrutiny From Politicians – NY Times
Has the bear market in stocks already begun? – MarketWatch
European Stocks Drop as German Consumer Confidence Shaky – The Street
Beware of the bubble in stock market bubble warnings – MarketWatch
Monetize This: Bond Strategists Pressed to Earn Their Keep – Bloomberg
Gold hits 3-week high as investors assess China currency move – Reuters
Gold Bullion Holds Its Own As Media Stocks Collapse – GoldCore
“Smart Money” Ready To Bet On Gold? – Dana Lyons

How Economic Growth Fails – Our Finite World
Expected Household Spending Tanks – Confounded Interest
How the U.S. Achieves a 5.3% Unemployment Rate – Wall St. on Parade
Impeaching Rousseff would set Brazil on fire: Senate chief – Reuters
Puerto Rico Bond Payments Depend on Cash Levels, Official Says – Bloomberg
German economic sentiment deteriorates in August – MarketWatch
Why Risky Borrowers Still Aren’t Getting Mortgages – WSJ
This ‘red flag’ should scare amateur home flippers – MarketWatch
Gibson’s Paradox And The Fatal Error Of Keynes And Friedman – GoldMoney
How the Fed will tighten – Money & Banking


China Readies More Stimulus

The sharp 8 percent drop in China exports last month has many thinking more stimulus is on the way for their sputtering quasi-command economy as detailed at Bloomberg.

On a related note, What if Mao still ran China? at the Financial Times points out that growth was pretty good long ago when there was no “quasi-” associated with the economy.

Tagged with:  
Page 11 of 795« First...910111213203040...Last »
© 2010-2011 The Mess That Greenspan Made