Tag Archives: risk dimension

The Price Signal

The Fed says it is now reviewing its inflation forecast. Being data driven, and thus reacting to whatever the open market serves up, the Fed’s statement of probability has a causal identity, nevertheless. Price signaling is supposed to be illegal … Continue reading

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On the QT

It’s no secret, the Federal Reserve says it’s time for quantitative tapering. Reversing the QE program means the Fed will “run off” its book of assets. Fed activities are in large measure on the qt. Econometricians argue Fed operations are … Continue reading

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Run to the Store

The DOW has run 1000 points to a record high three times this year. It is now above 22k. Things must be great, but as many business analysts point out, equity values continue to run higher against slow GDP. The … Continue reading

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Managing the Mitigation

Looking at the data, the US economy is currently experiencing price deflation. The only thing up in price is pharmaceuticals, supported by the ACA. As the price of healthcare keeps going up, demand for everything else keeps going down. The … Continue reading

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Maintaining Mitigation

Fed chief, Janet Yellen told the Senate Banking Committee today that the central bank will continue to “mitigate the risk.” The primary tool for mitigation, she said, will continue to be the Federal Funds Rate, which in financial circles is … Continue reading

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Inclined to be Intertwined

Currently, the Fed says that inflation is too low; and Europeans descend on Hamburg to express anti-capitalist sentiment. These factors are intertwined. Established, consolidated media assets are not inclined, however, to align these events with the real risk. Fed head, … Continue reading

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Banking with Interest

(Maintaining Reformulation of the “Big Risk”) Banking interests say reforming regulations should go slowly. Big banks don’t like Dodd-Frank’s capital-reserve requirements. The requirements are linked to “safety and soundness” (the “big risk”) since we do not have Glass-Steagall anymore. Not … Continue reading

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