Business

By EconMatters

The danger signs are building up for the Chinese bond market.

First, last Thursday, Chinese bond futures crashed by the most on record forcing China's regulator to briefly halt trading in the security until the panic fades.

Then, on Friday, a Chinese bill auction technically "failed" when it was unable to find enough buyers for the total amount offered for sale.

Because the Fed believes we're at or near full employment, any potential fiscal stimulus will serve to boost inflation more than growth, according to Goldman. As such, they believe both credit and FX markets have read this correctly, but stock investors, the village idiots, haven't quite grasped what this could entail.

By EconMatters

We delve into 2017 Trading Ideas focusing on the currency markets, specifically the Euro against the US Dollar being a buy from a good risk/reward setup of 1/3 in what is a very crowded trade right now as we close out 2016, i.e., the US Dollar "Is the only game in Town" trade.

On Tuesday, the SEC announced that Morgan Stanley will be fined $7.5 million to settle civil charges that it violated customer protection rules, when it used trades involving customer cash to lower its borrowing costs.  The SEC said MS will settle the case without admitting or denying the charges, effectively letting slide a violation which, in an exaggerated format, was exposed as a quasi-criminal offense engaged in by Jon Corzine's now defunct MF Global.