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Central Bank Balance Sheets: What Will They Look Like in 2016-2017?

MishTalk

Reader Gary emailed a link to JP Morgan's Quarterly Market Guide. Central Bank Policy Rates Current Rates Bank of England: 0.50% Bank of Japan: 0.10% Fed: 0.00%-0.25% (currently 0.14%) ECB: 0.05% Central Bank Balance Sheets Three Questions Other than asset bubbles, what do we have to show for this?

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Why Financial Statements Don’t Work for Digital Companies

Harvard Business

Similarly, Microsoft paid $26 billion for loss-making LinkedIn in 2016, and Facebook paid $19 billion for WhatsApp in 2014 when it had no revenues or profits. This becomes clear when you look at a company’s two most important financial statements: the balance sheet and the income statement.

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The Cantillon Effect

Tom Spencer

Central banks pursue “inflation at any cost” in order to oil the wheels of the credit markets. In 2020, the Fed has galloped over the precipice, increasing its balance sheet by around $2.8 In 2016, Brexit and Trump’s victory came as a one-two punch. trillion over the last 5 months.

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ECB's Targeted Lending Spree Starts Out As Flop; Modern Monetary Insanity

MishTalk

The European Central Bank’s first offer of cheap four-year loans has fallen short of expectations, dealing a blow to president Mario Draghi’s hope of sustaining the eurozone’s ailing economy by expanding the central bank’s balance sheet. If they miss the targets, they must pay the funds back in 2016.

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Steen Jakobsen: US Credit Cycle Peaked, Zero Growth Coming to Europe, Gold 1425 by Year End

MishTalk

Headlines for Next 6-7 Months US, German and EU core government bonds will be 100 basis points higher by and in Q4 before making final new low in H1 2016. Central Bank Balance Sheets Excuse me? Hard even to see change in ECB balance sheet. Via email, the rest of what follows is a guest post from Steen Jakobsen.

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Economic Illusions vs. Reality; Helicopter Drop, What Else?

MishTalk

Our conclusion is that, in a financially-challenged economy like the Eurozone, with policy rates close to the ELB, and with excessive leverage in both the public and private sectors, balance sheet expansion by the central bank alone may not be sufficient to boost aggregate demand by enough to achieve the inflation target in a sustained manner.

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ECB's €40bn Stimulus Gamble: ECB Pulls Out Bazooka, Cuts Rates, Buys Assets; Will this Stimulate Lending?

MishTalk

This reflects the role of the ABS market in facilitating new credit flows to the economy and follows the intensification of preparatory work on this matter, as decided by the Governing Council in June. The projections for 2015 and 2016 have remained unchanged. The projections for 2015 and 2016 have remained unchanged.

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