The Mess That Greenspan Made - Part 18

Investors Hate Stocks?

According to the graphic below from this Bloomberg story, investor sentiment has recently plunged along with stock prices, but, “fret not” they say, as big gains normally await those who dare to invest money after such an historic loss of confidence.


It’s hard to know what the correct price of anything is these days, what with the central banks of the world having their heavy thumbs on the scale and investors never knowing if or when they’ll relent, last week’s Fed no-decision being the latest example of such.

Monday Morning Links

‘Grexit’ risks fade as Tsipras wins Greek election – MarketWatch
The US Federal Reserve has got it wrong – Financial Times
Is the stock market holding Janet Yellen hostage? – CNN/Money
A divided Fed pits world’s woes against domestic growth – Reuters
Three Fed officials on board for rate hike before year-end – MarketWatch
Fed Dissenter Lacker Says Economy Needs Higher Rates Now – Bloomberg
Abandoning Syria: Few Options Left for Stopping the War – Spiegel
Two charts show why Syrian refugee crisis is going to worsen – Quartz
Carson will not apologize for Muslim remark – Politico
When an Easy Fed Doesn’t Help Stocks – Hussman Funds
Now What? – Credit Bubble Bulletin
Down with standing desks! – The Week

Global shares struggle on growth concerns – Reuters
Is the shale gas revolution over? – USA Today
Risk tolerance of men and women – voxeu
Who’s Left to Sell U.S. Stocks? Mood Darkens – Bloomberg
Occam’s razor says the stock market is in a downtrend – MarketWatch
Sparks about to fly in flash crash legal drama – Guardian
Gold retreats from 3-week high as dollar, equities rise – Reuters
The London Bullion Market And International Gold Trade – BullionStar
This new pattern could mean a big move in gold – MarketWatch
These two charts show plenty upside for gold price –

What do macroeconomists know anyway? – mainly macro
The Richest Americans Are Winning the Economic Recovery – Bloomberg
Chinese Group, U.S. Firm Agree to Build Bullet Train Line from LA to Las Vegas – WSJ
China warns Japan over expanding military role abroad – Reuters
China Beige Book Says Pessimism `Thoroughly Divorced From Facts’ – Bloomberg
Brazil’s Top Court Outlaws Corporate Contributions to Political Campaigns – Vice
Putin Faces Growing Exodus as Russia’s Banking, Tech Pros Flee – Bloomberg
Bank of Spain warns Catalonia secession would mean euro exit – AP
The Rage of the Bankers – Krugman, NY Times
Forecasting interest rates – Econbrowser


The Fed Decision in Two Minutes

This Bloomberg video of some of Fed Chair Janet Yellen’s prepared remarks during her press conference yesterday was popping up all over the place this morning. It’s actually the first four pages of a six page opening statement(.pdf) available at the Fed’s website.

It really just boils down to about the last 10 seconds – central bankers’ fear of deflation:

… in light of the heightened uncertainties abroad and a slightly softer expected path for inflation, the Committee judged it appropriate to wait for more evidence, including some further improvement in the labor market, to bolster its confidence that inflation will rise to 2 percent in the medium term.

Friday Morning Links

Why Yellen Blinked on Interest Rates – NY Times
Janet Yellen and the Fed Did the Right Thing – New Yorker
If Einstein Ran the Fed, Rates Would Rise – Bloomberg
Bankers Threaten Fed with Layoffs if it Doesn’t Raise Rates – Wolf Street
The Federal Reserve is losing credibility by not raising rates now – The Conversation
Dollar Falls Most Since August Meltdown as Fed Keeps Zero Rate – Bloomberg
For the love of God, millennials, you should be saving money – Vox
Where did Lake Powell go? Photos show impact of global warming – NY Post
Skiing Las Vegas? America’s Hottest Winter Destination – Forbes
Constitutionally, Slavery Is No National Institution – NY Times
In debate, Fiorina simply embarrassed Trump – The Hill
Vaccine phobia infects GOP race – Politico

Stocks tumble in wake of Fed call – USA Today
The Dangers Now Facing Stocks – Barron’s
Asian shares gain after Fed holds fire – MarketWatch
Asset markets and monetary policy: The zero rate trap – Economist
Commodities Top Returns Even in Worst Meltdown of a Generation – Bloomberg
Here’s what an emerging-markets mess could do to U.S. stocks – MarketWatch
Fraud, Fools, and Financial Markets – Shiller, Project Syndicate
Gold hits two-week high as Fed rate decision weighs on dollar – Reuters
Gold Set for First Weekly Gain in a Month After Fed – Bloomberg
Gold prices climb after Fed stands pat – MarketWatch

Americans More Optimistic About Job Market in September – Gallup
Poll: Wide support among NY voters for $15 minimum wage – AP
Brazil opposition seeks Rousseff impeachment for fiscal crimes – Reuters
Debt-Strapped Japan Planning a No-Frills Olympics – Bloomberg
U.S. commander backs challenging China over disputed islands – Reuters
Europe’s and the World’s Most Expensive Cities: A New Study – WSJ
California Drought Adds Heat To Hot Housing Market –
Janet Yellen Sees a ‘Very Depressed’ Housing Market – Bloomberg
How Congress screwed the Federal Reserve – The Week
In Thrall to the Federal Reserve – Mises


Clearly, Three Hours Was Too Long

For those wise enough to have skipped last night’s debate amongst those vying for the GOP nomination for president, here are the highlights, courtesy of this item at Marketwatch.

I fell asleep at some point, but not before hearing Donald Trump comment on how such a long debate boosted advertising revenues at CNN (Wow! – 40x normal ad rates).

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