Fed Admits Failure of ‘Plan A’ to Control Money Market Rates, Shifts Back to Repos (which was ‘Plan A’ till 2008) by Wolf Richter • Sep 20, 2019 • 161 Comments The hullabaloo in the repo market torpedoed the function of Interest on Excess Reserves and forced the Fed to go back to the future.
Unstoppable Negative Yields Suddenly Become Stoppable by Wolf Richter • Sep 20, 2019 • 45 Comments Snapback Bloodletting in the Overripe Bond Market.
Canada’s Most Splendid Housing Bubbles, August Update: Vancouver Spirals Lower by Wolf Richter • Sep 19, 2019 • 52 Comments House prices in Toronto still below 2017 peak. Montreal, Ottawa hit new highs. Quebec City about flat with Jun 2013. Edmonton back to Oct 2007. Calgary rises to March 2014 level.
Interest Rate Derivatives Trading Explodes to $6.5 Trillion/Day by Nick Corbishley • Sep 19, 2019 • 19 Comments A gigantic spike in three years. The UK dominates.
Fed’s Powell: No Negative Interest Rates at Next Crisis by Wolf Richter • Sep 18, 2019 • 117 Comments The Fed has different priorities than the ECB, the Bank of Japan, the Swiss National Bank, et al.
Foreign Exchange Trading Soars to $6.6 Trillion a Day, US Dollar is Total King by Wolf Richter • Sep 18, 2019 • 68 Comments Ginormous numbers, FX swaps and spot trades, USD, EUR, JPY, GBP, Australian & Canadian dollars… but where the heck is China’s CNY?
Debt-Wracked Chinese Companies Dump US & Other Foreign Assets, Become Net Sellers Overseas for First Time by Wolf Richter • Sep 17, 2019 • 80 Comments Another piece in the Chinese capital-flow puzzle.
Drama in the Oil Markets, But This Isn’t 2007 Anymore by Wolf Richter • Sep 16, 2019 • 168 Comments How the US shale boom changed the equation. If the attacks on Saudi oil facilities had occurred in 2007, it would have caused chaos in the US economy.
How Currency Controls Affect Doing Businesses in Argentina by Bianca Fernet • Sep 16, 2019 • 42 Comments Face it: Argentina is out of money.
THE WOLF STREET REPORT: Snapback Bloodletting in the Overripe Bond Market by Wolf Richter • Sep 15, 2019 • 65 Comments The 10-year Treasury yield rips. Unstoppable negative yields become stoppable.