Financial Regulation
World Economy Seems Trapped in “Death Spiral”
"The world appears to be trapped in a circular reference death spiral," wrote Citi strategists, led by Jonathan Stubbs said in a research note. "Stronger U.S. dollar, weaker oil/commodity prices, weaker world trade/petrodollar liquidity, weaker EM (and global growth)... and repeat. Ad infinitum, this would lead to Oilmageddon, a 'significant and synchronized' global recession and a proper modern-day equity bear market... The death spiral is in nobody's interest. Rational behavior, most likely, will prevail.”
Policymakers would likely attempt to “regain credibility” in the near term, according to the Citi analysts. “This is fundamental to avoiding a proper/full global recession and dangerous disorder across financial markets. The stakes are high, perhaps higher than they have ever been in the post-World War II era."
Posted: February 8th, 2016 | Permalink
The Banking Industry’s Two Lost Decades
Posted: February 8th, 2016 | Permalink
Outing the CFPB
“Newly uncovered internal memos reveal the Obama administration knowingly exaggerated charges of racial discrimination in probes of Ally Bank and other defendants in the $900 billion car-lending business as part of a ‘racial justice’ campaign that’s looking more like a massive government extortion and shakedown operation,” wrote Paul Sperry in the New York Post. “So far, Obama’s [CFPB] has reached more than $220 million in settlements with several auto lenders since the agency launched its anti-discrimination crusade against the industry in 2013. Several other banks are under active investigation.”
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Posted: February 8th, 2016 | Permalink
“The next stop? That would be negative interest rates according to the dangerous theorists running the world economy.”
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Increasingly Addled?
“…[O]ur finance-based global economy is transitioning due to the impotence of monetary policy which has always, and is now increasingly focused on the elixir of low/negative interest rates.”
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Posted: February 4th, 2016 | Permalink
Biggest Danger Is Bank Bashing
“The link between growth in money supply and nominal GDP is unambiguous and overwhelming.”
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Posted: February 3rd, 2016 | Permalink
