The Most Dangerous Market in History If you read the title and thought it was because we’re in the third longest expansionary business cycle or that growth of this last cycle has been the weakest in history or that debt levels are the highest across the globe, you might be right. Is it because valuation … Read more
Will the Fed Rescue the Banks Again? A couple of weeks ago the Fed announced that our major banks passed a stress test and that the banks were approved to reduce the amount of capital they are holding in reserve. Without delay, the major banks announced plans to return this excess capital to their shareholders … Read more
When Bank Lending Contracts, Watch Out Below In past updates, I have mentioned it is the Federal Open Market Committee (FOMC) or Fed, that engineers every expansion and contraction in the economy by expanding or contracting the money supply in our country. The evidence is compelling because out of the past thirteen tightening cycles, they … Read more
Quantitative Tightening We’re all familiar with Quantitative Easing, which are those three programs the Fed ran to expand the money supply in our country to pull us out of the 2008-09 recession. Imagine if the Fed announced that they were tightening, rather than easing. How might the markets react? Starting in December 2015, the Fed … Read more