Business

Over half a year after we first reported last August that foreign official institutions - central banks, sovereign wealth funds and reserve managers - are liquidating US Trasuries in record amounts, a process that only accelerated into last month when official entities sold a record $405 billion in US paper in the LTM period, Bloomberg decided to catch up to the topic with "America’s Biggest Creditors Dump Treasuries in Warning to Trump."

As credit and equity markets continue to grind higher with monotonous regularity, as bloviators fret about politics and analysts await clarity on monetary and fiscal policy, Bloomberg's Cameron 'macroman' Crise is worried that "this might be as good as it gets for US investors."

As Crise explains, one of his favorite metrics is one-year trailing return to volatility ratios in major markets, which mean-revert and thus can provide early warning signals for when things get extended.

Submitted by Dennis Miller via MillerOnTheMoney.com,

The Keynesians and the Capitalists are heading for an economic showdown at the O.K. Corral.

Just about 6 months from when the BC government introduced its 15% property tax for foreign buyers of homes in Vancouver, the verdict is out: The new tax has had significant impact on not only home prices in greater Vancouver; but has also resulted in a significant decline in the number of foreign buyers in that hot housing market.

IMMEDIATE GRATIFICATION

The new tax took effect on all transactions taking place from Aug 2, 2016 onwards. By October 28th, the government had reported receiving what one might term instant gratification. 

For those who said a March rate hike looks increasingly likely after today's blistering CPI report, which saw inflation printing at the highest in nearly 5 years, you are not alone: moments ago Goldman's chief economist agreed that the "firm CPI may bring forward next rate increase", and said "as a result, we have revised up our subjective odds of a rate increase at the March FOMC meeting to 30% (from 20%), and now see it as a close call whether the committee raises rates over the next two meetings or waits until mid-year"