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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.

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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.

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

MishTalk

The most important effect is likely to be on demand for wealth management products. 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. December 2005 (38).

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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.