Authored by Christoph Gisiger via Finanz und Wirtschaft,
James Grant, Wall Street expert and editor of the renowned investment newsletter «Grant’s Interest Rate Observer», warns of the unseen consequences of super low interest rate and questions the extraordinary actions of the Swiss National Bank.
Nearly ten years after the financial crisis, extraordinary monetary policy has become the norm.
In the third quarter of 2017, one in which the global economy was supposedly undergoing an unprecedented "coordinated growth spurt", and in which central banks were preparing to unveil their QE tapering intentions, in the case of the ECB, or raising rates outright, at the Fed, what was really taking place was another central bank buying spree meant to boost confidence that things are now back to normal, using "money" freshly printed out of thin air, and spent to prop up risk assets around the world by recklessly buying stocks with no regard for price or cost.
By Kevin Muir via The Macro Tourist blog,
Think back six months. Do you remember all the warnings from the legendary hedge fund managers about the impending stock market doom?
The price of shares in The Swiss National Bank is up 11 days in a row, soaring 150% in the last two months.
That sounds like a 'tulip' bubble-like 'fraud'...
The SNB is up over 120% in Q3 so far - more than double 'bubble' Bitcoin...
Let's check with the markets ultimate arbiter of what's fraud and what's real - JPMorgan CEO Jamie Dimon:
Global stocks backed off from all time highs, and S&P futures are unchanged ahead of the much anticipated US CPI report, which is expected to break a streak of five consecutive misses, while eyeing disappointing overnight Chinese economic data which missed across the board. European stocks and Asian markets were also modestly in the red, with the relentless global rally to new daily record highs taking a breather amid some concerns China's economy is rolling over, which weighed on commodities including base metals, which in turned dragged down mining stocks.