Fed risks repeating Lehman blunder as US recession storm gathers

GURPS

INGSOC
PREMO Member
Fed risks repeating Lehman blunder as US recession storm gathers


Liquidity is suddenly drying up. Early warning indicators from US 'flow of funds' data point to an incipent squeeze, the long-feared capitulation after five successive quarters of declining corporate profits.

Yet the Fed is methodically draining money through 'reverse repos' regardless. It has set the course for a rise in interest rates in December and seems to be on automatic pilot.

"We are seeing a serious deterioration on a monthly basis," said Michael Howell from CrossBorder Capital, specialists in global liquidity. The signals lead the economic cycle by six to nine months.

"We think the US is heading for recession by the Spring of 2017. It is absolutely bonkers for the Fed to even think about raising rates right now," he said.
 

Larry Gude

Strung Out
Dodd/Frank has the spigot all ready to go. No worries. This is more about people betting on no raise of even a freaking quarter point getting their view of this illusion out in front of the next meeting.
 

Gilligan

#*! boat!
PREMO Member
Dodd/Frank has the spigot all ready to go. No worries. This is more about people betting on no raise of even a freaking quarter point getting their view of this illusion out in front of the next meeting.

ah, yr such a cynic.
 

Larry Gude

Strung Out
ah, yr such a cynic.

Not in this case. DF was written specifically to be TARP in a can, to have it passed and on the shelf so the people would not need to be consulted, at all, the next time Wall Street needs our unlimited Mastercard.
 

Gilligan

#*! boat!
PREMO Member
Not in this case. DF was written specifically to be TARP in a can, to have it passed and on the shelf so the people would not need to be consulted, at all, the next time Wall Street needs our unlimited Mastercard.

Yr still a cynic though...
 
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