October 2014 - The Automatic Earth

Japan: QE As Morphine For A Terminal Patient

Oct 312014

October 31, 2014 Posted by Raúl Ilargi Meijer at 10:56 pm Finance Tagged with: Abe, credit, Halloween, Japan, morphine, QE, spending 8 Responses »

Japan: QE As Morphine For A Terminal Patient

Marion Post Wolcott Works Progress Administration worker’s children, South Charleston, West Virginia Sep 1938 You can jot down Halloween 2014 in your calendar, and it’s unfortunately too tragic to make proper use of the irony involved, as the day Japan committed suicide. The sun is no longer rising. Not that the vital signs weren’t bad before, indeed it might not have survived regardless, but this lethal blow announced today is still quite the statement. That financial markets interpret it as

Debt Rattle Halloween 2014

Oct 312014

October 31, 2014 Posted by Raúl Ilargi Meijer at 12:03 pm Finance Tagged with: China, deflation, drone, EMU, Fed, Japan, LNG, nuclear, oil, Putin, QE, shadow banking, Shale 3 Responses »

Russell Lee Saloon, Craigville, Minnesota Aug 1937 • Kuroda Jolts Markets With Assault on Deflation Mindset (Bloomberg) • Kuroda Surprises Again With Stimulus Boost as Japan Struggles (Bloomberg) • Japan Stocks Soar To 7-Year High On BOJ, Pension Fund Boost (Bloomberg) • US And China Tighten In Unison, And Damn The Torpedoes (AEP) • Shadow Banking Grows to $75 Trillion Industry (Bloomberg) • The $75 Trillion Shadow Hanging Over The World (Telegraph) • QE Central Bankers Deserve A Medal For

QE Is Dead, Now You Tell Me What You Know

Oct 302014

October 30, 2014 Posted by Raúl Ilargi Meijer at 9:45 pm Finance Tagged with: China, EU, Fed, gold, Groucho, oil, QE, rhubarb, stocks, Yellen 8 Responses »

QE Is Dead, Now You Tell Me What You Know

NPC Grief monument, Rock Creek cemetery, Washington, DC 1915 It seems like every blue moon or so I need to return to Groucho’s definition of chaos theory, it keeps on popping up. The first time I used it in an article goes back to at least May 2009, incidentally for many people the starting date of the financial crisis in their part of the world. This time around, it’s there because it’s what a lot of people in the financial

Debt Rattle October 30 2014

Oct 302014

October 30, 2014 Posted by Raúl Ilargi Meijer at 12:14 pm Finance Tagged with: China, Fed, foreclosure, gas, Japan, oil, QE, zombie Comments Off

John Collier Japanese restaurant, Monday after Pearl Harbor, San Francisco Dec 8 1941 • Fed Unshaken by Global Market Turmoil Bets on Job Gains (Bloomberg) • QE: Giving Cash To The Public Would Have Been More Effective (Guardian) • Fed’s Lonesome Dove Dissents as Brighter Outlook Appeases Hawks (Bloomberg) • Number Of Billionaires More Than Doubles In 5 Years Since Financial Crisis (CNBC) • Global Financial System ‘Incendiary’ Risk To Stability: BoE (Guardian) • Zombie Foreclosures Rise In 16 States

Everything The Fed Does Is Scripted

Oct 302014

October 30, 2014 Posted by Raúl Ilargi Meijer at 12:18 am Finance Tagged with: Fed, Greenpsan, interest rates, QE, script 14 Responses »

John Collier Street Corner, Monday after Pearl Harbor, San Francisco Dec 8 1941 Janet Yellen today solemnly stated that the Fed has killed QE because the jobs outlook has improved. These are the guys and gals who have more and better access to more and better data than any of us have. And we all know that the sole reason the BLS unemployment rate has fallen is that 90-odd million working age Americans are no longer counted as part of

Debt Rattle October 29 2014

Oct 292014

October 29, 2014 Posted by Raúl Ilargi Meijer at 11:41 am Finance Tagged with: boom, China, consumer, corruption, Fed, happiness, kiwi, oil, payday, pope, population, QE, reef 5 Responses »

Russell Lee Photo booth at fiesta, Taos, New Mexico Jul 1940 • Fed Set To End One Crisis Chapter Even As Global Risks Rise (Reuters) • How American QE Has Changed The World (Telegraph) • The Biggest Risk For US Investors Is A China Crash (MarketWatch) • Is China’s Export Boom Fake? (CNBC) • Another Reason Not to Trust China’s Economic Data (BW) • China Shadow Banking Shifted to Insurers Alarms Moody’s (Bloomberg) • US Homeownership Rate Drops To 1983

Life Lessons To Derive From QE And Stress Tests

Oct 282014

October 28, 2014 Posted by Raúl Ilargi Meijer at 9:56 pm Finance Tagged with: Bernanke, chains, Draghi, EU, France, Greece, Italy, QE, slaves, Stress Test, Yellen 1 Response »

Life Lessons To Derive From QE And Stress Tests

Arthur Rothstein Texas Panhandle Dust Bowl Mar 1936 I already proposed a few days ago that the recent ECB stress test exercise was such a shambles, it may well have been designed to fail on purpose. In order for Mario Draghi and his Goldman made men to be freed from that pesky German resistance against full blown QE, i.e. large scale purchases of government bonds from the 18 countries that make up the eurozone. And perhaps the other 10 that

Debt Rattle October 28 2014

Oct 282014

October 28, 2014 Posted by Raúl Ilargi Meijer at 11:21 am Finance Tagged with: arctic, deflation, Draghi, ebola, energy, infertility, leverage, meltdown, QE, Stress Test, wind power 4 Responses »

Arthur Siegel Zoot suit, business district, Detroit, Michigan Feb 1942 • Fears Grow Over QE’s Toxic Legacy (FT) • Draghi QE May Help Europe’s Rich Get Richer (Bloomberg) • Quantitative Easing Is Like “Treating Cancer With Aspirin” (Tim Price) • ECB Stress Tests Vastly Understate Risk Of Deflation And Leverage (AEP) • Under Full Capital Rules, 36 EU Banks Would Have Failed Test (Reuters) • 3 Reasons Why You Should Expect A 30% Market Meltdown (MarketWatch) • US Banks See

Don’t Buy A Home: You’ll Get Burned

Oct 272014

October 27, 2014 Posted by Raúl Ilargi Meijer at 8:28 pm Finance Tagged with: Fannie, FHFA, Freddie, homeowners, housing, mortgage, reset, Ritholtz 9 Responses »

Albert Freeman Effect of gasoline shortage in Washington, DC 1942 Europe had hundreds of inspectors check 130 banks for a year in that stress test. Who do you think picked up the tab for that? And what did Europe’s taxpayers get in return? As I’m looking right now, they got falling stocks and 3 Italian banks in which trading was halted. What was the ECB’s goal with the tests again? Oh right, to restore confidence in the markets … Well,

Debt Rattle October 27 2014

Oct 272014

October 27, 2014 Posted by Raúl Ilargi Meijer at 11:38 am Finance Tagged with: arctic, Big Oil, China, collapse, ebola, emerging markets, Italy, Spain, Stress Test 1 Response »

Unknown California State Automobile Association signage 1925 • Stock Markets Threatened By Collapse In Chinese Consumer Demand (Questor) • Scariest Day For Market Looms, And It’s Not Halloween (CNBC) • What Next After China’s Foreign Reserves Fall? (MarketWatch) • 15 Big Oil Sell Signals That Warn Of A 50% Stock Crash (Paul B. Farrell) • Oil Speculators Bet Wrong as Rebound Proves Fleeting (Bloomberg) • Goldman Cuts Oil Forecasts as US Market Clout Increases (Bloomberg) • A Scary Story for

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