In the aftermath of the stunning liquidation and gating of first Third Avenue's junk bond mutual fund, and shortly thereafter several other fixed income hedge funds, investors have been following with great interest capital (out)flows from the fixed income space.
Submitted by Leonard Brecken via OilPrice.com,
It’s very clear that both the industrial and manufacturing sectors are in recession while consumer spending slows but remains positive despite lower commodity prices. This divergence can be blamed at least in part on the Federal Reserve’s policy of pursuing a stronger dollar.
Submitted by David Stockman via Contra Corner blog,
Yellen said at least one thing of importance last week, but not in a good way. She confessed to the frightening truth that the FOMC formulates its policies and actions based on forecasts of future economic developments.
Ever since 2010 we have explained that one of the biggest risks facing the world is China's gargantuan mountain of debt, seen in its consolidated state in the following McKinsey chart...
... a mountain which has doubled from its 2007 levels of 158% of GDP and which as of Q4 2015 is well over 300%, as China races to catch up with world-record holder Japan and its 400%+ total debt/GDP.
Submitted by Ron Paul via The Ron Paul Institute for Peace & Prosperity,
Stocks rose Wednesday following the Federal Reserve’s announcement of the first interest rate increase since 2006. However, stocks fell just two days later. One reason the positive reaction to the Fed’s announcement did not last long is that the Fed seems to lack confidence in the economy and is unsure what policies it should adopt in the future.