by pentoport | Oct 7, 2019 | Commentary
The Federal Reserve’s recent need to supply $100’s of billions in new credit for the overnight repo market underscores the condition of dollar scarcity in the global financial system. This dearth of dollars and its concomitant strength has left most market watchers...
by pentoport | Sep 30, 2019 | Commentary
September 30, 2019 The Fed has now begun to pave the way for a return to Quantitative Easing. The reason for this was the recent spike in borrowing rates in the Repo market. At his latest press, Chair Powell said this about the spike in the Effective Fed Funds and...
by pentoport | Sep 23, 2019 | Commentary
September 23, 2019 The world of fixed income trading has been extremely volatile lately. Rates have not only spiked in the Treasury market, but borrowing costs in money markets have also become extremely disconcerting. The residual effects from Quantitative...
by pentoport | Sep 9, 2019 | Commentary
September 9, 2019 One of the best examples of Wall Street’s propaganda machine at work is its willingness to dismiss recessionary signals. The inverted yield curve is a perfect example. Case in point, look at the story that was put out on Market Watch dated November...
by pentoport | Sep 3, 2019 | Commentary
September 3, 2019 Last week we wrote about how global central banks have created an economic time machine by forcing $17 trillion worth of bond yields below zero percent, which is now 30% of the entire developed world’s supply. Now it’s time to explain how the time...
by pentoport | Aug 23, 2019 | Commentary
August 23, 2019 We are now witnessing the death throes of the free market. The massive and record-breaking global debt overhang, which is now $250 trillion (330% of GDP), demands a deflationary deleveraging depression to occur; as a wave of defaults eliminates much...
by pentoport | Aug 19, 2019 | Commentary
August 19, 2019 In 1842 the Qing dynasty surrendered Hong Kong to the British Empire following the First Opium War. Then, in 1898, the British pledged to cede it back to China after 100 years had passed. Excluding the period of Japanese occupation during the Second...
by pentoport | Aug 5, 2019 | Commentary
August 5, 2019 With Inflation hovering around 2% and the level of unemployment at historic lows, the Fed is fully attaining its prescribed dual mandate of full employment and stable prices (now defined as 2% inflation rate). Given this, one would think Jerome Powell...
by pentoport | Jul 29, 2019 | Commentary
July 29, 2019 Let’s dive right into why lowering interest rates at this point in the cycle will not provide much of a boost to the faltering global economy and may not be much help to the stock market either. The simple truth is that asset prices are far too...
by pentoport | Jul 22, 2019 | Commentary
July 22, 2019 The Q2 earnings season is upon us and the risks to the rally that started after the worst December on record at the close of last year is in serious jeopardy. We received a glimpse of this with some of the current companies that have reported. For...
