Authored by Raul Ilargi Meijer via The Automatic Earth blog,
You are not an investor. One can only be an investor in functioning markets. There have been no functioning markets since at least 2008, and probably much longer. That’s when central banks started purchasing financial assets, for real, which means that is also the point when price discovery died. And without price discovery no market can function.
Another day, another fine for the bank that no matter what, just can't play by the rules.
On Thursday, the Federal Reserve fined Deutsche Bank $156.6 million for violating foreign exchange rules and running afoul of the Volcker Rule, suggesting it was likely trading FX out of its own account in violation of Dodd-Frank.
In levying the FX fine on Deutsche Bank, the Fed said it found "deficiencies in the firm's oversight of, and internal controls over, FX traders who buy and sell U.S. dollars and foreign currencies for the organization's own accounts and for customers."
While various Fed presidents continue to toe the party line, saying they expect 3 rate hikes in 2017, most recently the Fed's Kaplan earlier this morning, the firm which not only sets Fed policy but now openly tells the president what to do, Goldman Sachs, is starting to get cold feet, and in a note released overnight, the firm's chief economist Jan Hatzius says that "we have become a bit less confident about near-term hikes." The U-turn was to be expected as it comes just days after Goldman threw in the towel on its long-dated strong Dollar call, which traditionally comes hand in hand wit
Trump To "Bully" Fed Into Printing Money - Negative for Stocks, Positive for Gold
David McWilliams has written an interesting article in which he puts forward the case that Trump is likely to turn on the "enemy within," the Federal Reserve and bully them into "printing money."
Authored by Danielle DiMartino Booth via Time.com,
Coulda, shoulda, woulda. How different would the world we live in today be had the Federal Reserve shown restraint and practiced self-control in the current economic recovery? Where would the stock market be if Fed officials had not placated investors every time they threw a temper tantrum, demanding more stimulus?