Authored by Chris Whalen via The Institutional Risk Analyst,
The term “Greenspan Put” was coined after the stock market crash of 1987 and the subsequent bailout of Long Term Capital Management in 1998. The Fed under Chairman Alan Greenspan lowered interest rates following the fabled event of default and life continued.
The Federal Reserve's "smooth transition" from Janet Yellen to Jay Powell is set for a major speedbump.
Just two short days after Donald Trump confirmed what weekly trial balloons had reported for weeks, namely that Janet Yellen is being replaced with most "dovish" alternative possible in the face of former Carlyle partner and 5 year Fed governor Jerome Powell, the person who according to some is even more instrumental to Fed policy than Janet Yellen, NY Fed president Bill Dudley is reportedly leaving.
If you consider the tactical situation facing the Federal Open Market Committee, two pictures really tell the tale. First is GDP, FedFunds, 2 year Treasury Notes and 10 year T-bonds, as shown in the chart from FRED.
Authord by Chris Whalen via The Institutional Risk Analyst,
Almost as soon as it started, the excitement surrounding earnings for financials in Q3 2017 dissipated like air leaving a balloon.
Source: HedgeEye
Results for the largest banks – including JPMorgan (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) – all universally disappointed, even based upon the admittedly modest expectations of the Sell Side analyst cohort.
News that Senator Bob Corker (R-TN) is retiring from the Senate was not welcome news for advocates of reform in the government-controlled world of housing finance. "A big loss," said John Thune (R-SD). "He's always been a guy who's really about trying to find solutions, common ground, and getting results."