Tightening Comes Even to Ridiculous ECB Sooner, Faster as Seven EU Countries Hit by 10%-16% Inflation, Four by over 9% by Wolf Richter • Apr 22, 2022 • 133 Comments The ECB created the greatest corporate bond bubble ever. Now junk bonds get crushed, yields already doubled, set to double again, and again, cleansing out the zombies.
Front-Running the Fed: Bank of Canada Hikes 50 Basis Points to 1.0%, Starts Official QT. Unofficial QT Already Shrank Assets by 15% by Wolf Richter • Apr 13, 2022 • 219 Comments “The economy can handle higher interest rates, and they are needed.” The BoC is way behind the curve, but way ahead of the Fed.
Bank of Japan’s Mind Game: Massive Bond Buys to Cap 10-Year Yield? Didn’t Happen. Bond Holdings Actually Fell. But it Worked by Wolf Richter • Apr 7, 2022 • 54 Comments Maybe the BoJ doesn’t want to totally crush the yen?
Bank of Canada Front-Runs the Fed, Hikes Interest Rates, Citing Hot Inflation & Even More Inflationary Pressures by Wolf Richter • Mar 2, 2022 • 104 Comments Rates “need to rise further.” Balance sheet already shrank by 14%, more shrinkage to come.
Global Tightening amid Raging Inflation: February Update by Wolf Richter • Feb 3, 2022 • 224 Comments Brazil and Russia caught up via shock-and-awe rate hikes. But most central banks fell further behind. Then there are the reckless laggards.
End of Easy Money: Monstrous Money-Printer Bank of Japan Stops Printing Money, Cuts Government Securities Below July 2020 Level by Wolf Richter • Jan 5, 2022 • 87 Comments Its much-hyped but minuscule stock ETF holdings are on ice too.
US Dollar’s Status as Dominant “Global Reserve Currency” at 25-Year Low. And USD Exchange Rates? by Wolf Richter • Dec 30, 2021 • 183 Comments Euro’s 20th birthday after dreams of “Dollar Parity” put on ice during Euro Debt Crisis. Central banks still leery of Chinese renminbi.
End of Easy Money: Global Tightening in Full Swing, While the Fed Promises to Wake Up in Time Next Year by Wolf Richter • Dec 22, 2021 • 213 Comments Central banks jacked up rates to catch up with run-away inflation, but most fell further behind; only Russia caught up. The Fed didn’t even try.
The Most Splendid Housing Bubbles in Canada “Pause” after Bank of Canada Ends QE, Starts Unwinding its Balance Sheet by Wolf Richter • Nov 17, 2021 • 87 Comments Home prices fell in Vancouver, Ottawa, and Montreal; were flat in Toronto, other cities for the first time since 2019.
Monstrous Money Printer Bank of Japan Stopped Printing Money, Started Unloading Government Securities by Wolf Richter • Nov 3, 2021 • 89 Comments Nikkei 225 is flat with February, when the BoJ started unloading government securities.
