Thursday, September 12, 2019
Wednesday, September 11, 2019
Jeffrey Snider explains the decline in bond yields to The Wall Street Journal's Andy Kessler, tells a clueless Fed what must be done
The Fed Can’t See Its Own Shadow
Its asset purchases are squeezing nonbank lending and sinking long-term bond rates. ...
Shortages of long bonds—good collateral—are causing “relentless”
demand and therefore lower yields. That’s why German long bonds have
negative interest rates: not because losing money is a great investment,
but because negative interest is the cost of doing business to get
“pristine collateral” to use in repos.
This is how the global credit system—what Mr. Snider labels the
Eurodollar market—now works. The Fed has become the lender of last
resort for the global market, including banks and shadow banks. It’s
about time its governors figure that out.
So what should they do? Encourage the Treasury to issue more of the
long bonds the market is demanding: 30- or even 100-year. Feed the
beast. Then stop quantitative easing: It doesn’t work and soaks up
collateral. Next, stop paying interest on reserves. Maybe even create a
nontradable “Treasury-R” to act as reserve currency elsewhere, freeing
up more bonds. If history repeats, there are about 90 days until China
repos roll over again.
Tuesday, September 10, 2019
Peak Trump administration delusion: "Labor market hotter now than during any time in our history"
The Trump administration pointed to the poverty decline as evidence that its economic agenda is helping the neediest Americans. “Employment is the best way out of poverty, and President Trump’s policies have made the labor market hotter now than during any time in our history,” said Tomas Philipson, acting chairman of the White House Council of Economic Advisers.
Podshare: The Soviet future of housing
Comrade Kaprugina to Yuri: "There was living space for thirteen families in this one house."
Yuri: "Yes. Yes, this is a better arrangement, comrades . . . more just."
Feminism is a mental disorder: Democrat Congressman's wife upset Obamacare covers her husband's pregnancy but not their marriage counseling
Which they're going to need a lot more of.
Unaffordable No Health Care Act: Health insurance premium increases pre-Obamacare 10%, post-Obamacare 60%
Yes, It Was The 'Affordable' Care Act That Increased Premiums:
It turns out that across the
board, for all ages and family sizes, for HMO, PPO, and POS plans,
premium increases averaged about 60 percent from 2013, the last year
before ACA reforms took effect, to 2017. In same length of time
preceding that, all groups experienced premium increases of less than 10
percent, and most age groups actually experienced premium decreases, on
average.
John Simon Bercow quits as UK Commons Speaker after 10 years in the job
Commons Speaker John Bercow expressed his displeasure at Parliament’s suspension, saying “this is not a standard or normal prorogation.”
“It’s one of the longest for decades and it represents an act of executive fiat,” he said. ...
Bercow, whose control of business in the House of Commons has made him a central player in the Brexit drama, announced he would step down after a decade in the job.
The colorful speaker, famous for his loud ties and even louder cries of “Order!” during raucous debates, told lawmakers he will quit the same day Britain is due to leave the EU, Oct. 31.
Throughout the three years since Britain voted to leave the EU, Bercow has angered the Conservative government by repeatedly allowing lawmakers to seize control of Parliament’s agenda to steer the course of Brexit.
He said he was simply fulfilling his role of being the “backbenchers’ backstop” and letting Parliament have its say.
“Throughout my time as speaker, I have sought to increase the relative authority of this legislature, for which I will make absolutely no apology,” he said.
Monday, September 9, 2019
Charlie Kirk is an ignoramus: The Gates of Janus were open continuously from 227BC-29BC
Almost 200 years of continuous war under the Roman Republic, and maybe 400 continuous years before that, to 235BC. Perhaps you've heard of it.
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