Weekly Update 8.11.17

Adam Taggart
By Adam Taggart on Fri, Aug 11, 2017 - 3:29pm

8 Comments

KugsCheese's picture
KugsCheese
Status: Diamond Member (Online)
Joined: Jan 2 2010
Posts: 1409
What If QE4 Is Fast-Tracked?

I am beginning to think QE4 is coming sooner rather than later.

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5392
I think it comes as soon as...
KugsCheese wrote:

I am beginning to think QE4 is coming sooner rather than later.

I think it comes at the very first hint of trouble.

The central bankers are clearly afraid to allow even a minor downturn get started.  Which should really worry a lot more people than it does.

After all, it implies that they know something these other people don't.

Edwardelinski's picture
Edwardelinski
Status: Gold Member (Offline)
Joined: Dec 23 2012
Posts: 302
Central Banks

Check out Matt Taibbi in Rolling Stone today.The LIBOR elimination could blow the global pricing structures around the world.Because it was fake.Goldbugs,your day in the sun may finally come...

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2211
Thanks for the tip re the Taibbi article, Edwardlinski

I love Matt Taibbi's ability to cut through BS like a hot knife through butter.  Just a pleasure to read.

Here's an excerpt:

Now, the news is worse: LIBOR is made up.

Actually it's worse even than that. LIBOR is probably both manipulated and made up. The basis for a substantial portion of the world's borrowing is a bent fairy tale.

The admission comes by way of Andrew Bailey, head of Britain's Financial Conduct Authority. He said recently (emphasis mine):
"The absence of active underlying markets raises a serious question about the sustainability of the LIBOR benchmarks. If an active market does not exist, how can even the best run benchmark measure it?"

As a few Wall Street analysts have quietly noted in the weeks since those comments, an "absence of underlying markets" is a fancy way of saying that LIBOR has not been based on real trading activity, which is a fancy way of saying that LIBOR is bullshit.

LIBOR is generally understood as a measure of market confidence. If LIBOR rates are high, it means bankers are nervous about the future and charging a lot to lend. If rates are low, worries are fewer and borrowing is cheaper.

It therefore makes sense in theory to use LIBOR as a benchmark for borrowing rates on car loans or mortgages or even credit cards. But that's only true if LIBOR is actually measuring something.

Here's the link to the article, "Taibbi: Is LIBOR, Benchmark for Trillions of Dollars in Transactions, a Lie?" if others are also interested:

http://www.rollingstone.com/politics/news/taibbi-is-libor-crucial-financial-benchmark-a-lie-w497305

KugsCheese's picture
KugsCheese
Status: Diamond Member (Online)
Joined: Jan 2 2010
Posts: 1409
Sinead O'Connor

Linked to the Rolling Stone article in comments.   Another person ruined by pharma: 

Cornelius999's picture
Cornelius999
Status: Gold Member (Online)
Joined: Oct 17 2008
Posts: 323
For another view please

For another view please google:    " Voyeurism and compassion: who is really hurting Sinead? "

kaimu's picture
kaimu
Status: Silver Member (Offline)
Joined: Sep 20 2013
Posts: 153
IRRATIONAL RATIONALITY

Aloha! What is rational?
We have less than 1% Fed Funds rate and 17% credit card rates!

Then define "market"! If its not free without government intervention and bank manipulation then it can't even be called a "market" even if it actually trades something!

Even the LIBOR traders admitted they made bets on "stale donuts"!
I find Rolling Stone as a financial news source is about five years behind the non-mainstream media! What we call the "alt"!
Next Matt will write on how many versions of unemployment the BLS has, but they only have one official one and its so flawed you could drive a space shuttle through the holes!

Unfortunately as Sinead has found sooner or later we're all on our own! Of course that is how we came into this world too!

I miss the days when Larry Summers convinced Clinton we don't need Glass-Steagal any more because derivatives were our safety net! My how we reward failure!!!!

Edwardelinski's picture
Edwardelinski
Status: Gold Member (Offline)
Joined: Dec 23 2012
Posts: 302
Agreed on Fed Funds

Considering I had a career trading both Fed Funds and Euros that is a market I know something about.The Fed has destroyed both markets.On Taibbi,being a lame reporter,that is where our opinions differ.On your 5 year time frame he was hired by First Look Media(The Intercept) to start a business and political corruption magazine.Unfortunately for many of us problems arose and it didn't work out.He was in the company of Greenwald,Schahill,Poitras,Cook,Klein,Eisenger,Sirota etc.He writes for Rollingtone because they let him do whatever the hell he pleases.As far as the removal of Libor here is the short version of unintended consequences,borrowers,lenders,,adjustable rate mortgages,mortgage securities trading etc.So yes that matters.....

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