Submitted by Daniel Bier via The Foundation for Economic Education,
Willie Sutton was one of the most infamous bank robbers in American history. Over three decades, the dashing criminal robbed a hundred banks, escaped three prisons, and made off with millions. Today, he is best known for Sutton’s Law: Asked by a reporter why he robbed banks, Sutton allegedly quipped, “Because that’s where the money is.”
US monetary conditions are the tightest since 2009, financial conditions the tightest since 2009, and as Moody's reports today Liquidity Stress is at its worst since February 2010 - all forewarning of a notable rise in defaults in 2016... and what can the Fed do?
Worryingly, as Credit Suisse explains, US monetary conditions are now the tightest that they have been since 2009...
Via GEFIRA,
The Bank of Japan’s unexpected rate cuts to negative are a desperate attempt to help out the FED and to support the dollar at the expense of the aging Japanese population.
The negative market reaction to the FED’s rate hike of December shows that investors do not believe an economic recovery in the US is underway. Two reasons make central banks start to raise interest rates.
Submitted by Tony Sagami via MauldinEconomics.com,
“At current spot rates, we would expect a significant impact to revenue and profit again in 2016.”—Martin Schroeter, CFO of IBM
We’re in the middle of earnings season, and one of the themes I am hearing over and over from American companies is how the strong dollar is killing their profits.
Lately UBS, which just announced its latest ugly quarter in which the ultra-wealthy client dependent bank saw $3.3 billion in outflows from its all important wealth-management business, has been increasingly dour on the future, whether it is warning to "Buy Gold" As Equities “Rolling Over” or explaining "How The Investment Grade Dominos Will Fall." Today, UBS' chief global credit strategist Matthew Mish takes on the pleasant topic of predicting what the next imploding "energy-like" sector in credit markets, which is particularly relevant after today's historic downgrade of several energy na