Summarizing The “Black Monday” Carnage So Far!

We warned on Friday, after last week's China rout, that the market is getting ahead of itself with its expectation of a RRR-cut by China as large as 100 bps. "The risk is that there isn't one." We were spot on, because not only was there no RRR cut, but Chinese stocks plunged, with the … Continue reading Summarizing The “Black Monday” Carnage So Far!

Federal Reserve Boxed In: Black Monday & 30 Day Reset Or QE4 Kick The Can?

There is little to no recognition of the key fact of Dodd-Frank Act. Namely, Title II of the Act to establish an Orderly Liquidation Authority, vests the FDIC with the authority to conduct a European-style bail-in. Hearings continued  in the House and Senate to review what exactly was voted into law with the 2010 Wall … Continue reading Federal Reserve Boxed In: Black Monday & 30 Day Reset Or QE4 Kick The Can?