article thumbnail

Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation?

MishTalk

Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. The risk premiums of risky securities have become unsustainably compressed in the process, and the Feds balance sheet has metastasized to $3.5 Minsky noted that ‘euphoria’ might develop at this stage.

article thumbnail

Mish's Global Economic Trend Analysis: Ritholtz on Gold and on.

MishTalk

Inquiring minds may be interested in this flashback from Barry Ritholtz originally written published June 2005 and republished March 27th, 2011 on The Folly of Forecasting. Barring some new developments — like all the gold in Fort Knox becoming irradiated — I do not expect to see a resumption of the 2001-11 uptrend.

Trends 63
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

BIS Slams the Fed; Ridiculous Question of the Day: "Is The Fed Going To Attempt A Controlled Collapse?"

MishTalk

This share was higher than during the pre-crisis period from 2005 to mid-2007. Historical evidence shows that this rarely happens following a balance sheet recession. In the syndicated loan market, for instance, credit granted to lower-rated leveraged borrowers (leveraged loans) exceeded 40% of new signings for much of 2013.

article thumbnail

Mish's Global Economic Trend Analysis: Michael Pettis on the China.

MishTalk

Chinese financial markets often seem less volatile than one would expect for a poor, developing country, largely because of administrative measures that intentionally or unintentionally suppress normal volatility. the country’s balance sheet, and this will mean not a collapse but. December 2005 (38). July 2005 (27).

article thumbnail

FOMC Minutes and Economic Projections: Dissent in Both Directions

MishTalk

Going forward, he viewed it as particularly important for the Committee to monitor price developments closely and to adapt its policy in response to incoming economic information. Participants also described their views regarding the appropriate path of the Federal Reserves balance sheet. December 2005 (38).

article thumbnail

Bulls and Bears Debate China: Property Bubble Expands Again; GDP Growth Picks Up; Economic Recovery Underway? No Says Michael Pettis

MishTalk

A series of land sales have set record prices since August, with real estate developers ramping up their competition for the best plots in the biggest cities. This means that the foreign currency reserves are simply the asset side of a balance sheet against which there are liabilities. China Rich in Reserves.

article thumbnail

As European Banks Retreat from the World Stage, China Is Stepping Up

Harvard Business

China’s four largest banks have quadrupled the share of foreign assets on their balance sheets since 2007 to $1 trillion—that make gives them larger foreign portfolios than German or Italian banks. But developing economies are rising up the rankings. China has risen from 16th place in 2005 to 8th in 2015.

Banking 28