Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. Most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today, we look at crude oil demand. (See the Commodities section.)
Economy & Finance:
At Zero Hedge: QE Or Not QE? Here Is The Market’s Answer In One Simple Chart. Here is a an excerpt:
“The upshot to this attempt to mislead the market what it is doing according to Bank of America, is that:
- the Fed is continuing to “ease” even though rate cuts are now on hold, which is supportive of growth, higher interest rates and higher equities, and
- the Fed is loosening financial conditions by increasing the availability of, and lowering the cost of, leverage, which broadly supports asset prices potentially at the cost of increasing systemic financial risk.
And while we have repeatedly argued why we think that, stripped of all its semantic veneer, the Fed’s latest asset purchase program is, in fact, QE, BofA effectively confirmed why we are right.
Which brings up a tangential, if just as important question: Why is the Fed so concerned about not signaling QE, and why are so many Fed fanboys desperate to parrot whatever Powell is saying day after day? Simply said, there are several reasons why the Fed is making a great effort to let the world know that its security purchases are not QE and are not reflective of any change in monetary policy stance.”
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And t Wolf Street: Another Negative-Interest-Rate Central Bank Laments What Negative Interest Rates Have Wrought