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Great Graphic: Central Bank Balance Sheets

October 07, 2012
This Great Graphic comes from Also Sprach Analyst blog.   It depicts the balance sheets of the Federal Reserve, Bank of England, European Central Bank and the Bank of Japan.  
What will surprise many is that the Fed's balance sheet has shrunk for nearly a year and, as a percentage of GDP, its balance sheet is not as large as the other major co…
Great Graphic: Central Bank Balance Sheets Great Graphic:  Central Bank Balance Sheets Reviewed by Marc Chandler on October 07, 2012 Rating: 5
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Positioning and FX Outlook: The Price of Protection

October 06, 2012
We have been tracking the deterioration in the technical condition of the major foreign currencies in this weekly note for the past three weeks.  The euro's recovery, off the support we identified here last week near $1.2800, should not overshadow the fact that the dollar's technical tone remains, on balance, still constructive.  

Euro vol…
Positioning and FX Outlook: The Price of Protection Positioning and FX Outlook:  The Price of Protection Reviewed by Marc Chandler on October 06, 2012 Rating: 5
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Great Graphic: Bank Leverage

October 05, 2012
This Great Graphic comes from Zero Hedge.  It shows individual bank assets as a percentage of the GDP of the country in which they are headquartered.   Europe is characterized by relatively small countries with large banks.  While the too-big-too-fail doctrine was cited in the US, it may be a misnomer.  It is not size that stands out relative to …
Great Graphic: Bank Leverage Great Graphic:  Bank Leverage Reviewed by Marc Chandler on October 05, 2012 Rating: 5
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US Jobs Report: Something for Everyone, but Not Enough

October 05, 2012
The US jobs report was decidedly mixed. There was good and bad news but the bottom line is that the data is still too weak for the Fed to even consider ending its unconventional policy. The economy created a net 114k jobs after the August series was revised to 142k from 96k. 
The private sector created 104k jobs, slightly better than the 97k gai…
US Jobs Report: Something for Everyone, but Not Enough US Jobs Report:  Something for Everyone, but Not Enough Reviewed by Marc Chandler on October 05, 2012 Rating: 5
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Jobs, Jobs, Jobs

October 05, 2012
The US employment data is the main event before the weekend.  The Federal Reserve's QE3+ is conditioned on sustained and substantial improvement in the labor market.  That means regardless of today's report, the Fed's long term asset purchases will continue.  In fact, they are likely to continue through at least next year and may even…
Jobs, Jobs, Jobs Jobs, Jobs, Jobs Reviewed by Marc Chandler on October 05, 2012 Rating: 5
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Bank of Japan and Central Bank Independence

October 04, 2012
The Bank of Japan is the fourth G10 central bank that meets this week.  The Bank of England and the European Central Bank did nothing as expected.  The Reserve Bank of Australia did not just deliver a 25 bp as indicative prices in the derivatives market had favored, even if many economists were taken by surprise, but it kept the door open to addi…
Bank of Japan and Central Bank Independence Bank of Japan and Central Bank Independence Reviewed by Marc Chandler on October 04, 2012 Rating: 5
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Fox Business: Future of the Euro Fox Business: Future of the Euro Reviewed by magonomics on October 04, 2012 Rating: 5
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Thoughts on the ECB

October 04, 2012
The most important thing that ECB President Draghi has said in his prepared remarks was the reluctance to reschedule Greek bond holdings on grounds that would be tantamount to monetary financing.   
Really?  Buying the bonds in the first place did not count as monetary financing but extending the maturities, say for the ones that come due say in …
Thoughts on the ECB Thoughts on the ECB Reviewed by Marc Chandler on October 04, 2012 Rating: 5
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Churn Burn Continues

October 03, 2012
The US dollar is narrowly mixed as North American operators return to their posts.  Initial gains were seen in Asia, as the market ostensibly reacted to reports that Spanish Prime Minister Rajoy denied earlier reports that a formal request was imminent.  Color us skeptical.  Such denials were seen near the US open yesterday.  
It seems more likel…
Churn Burn Continues Churn Burn Continues Reviewed by Marc Chandler on October 03, 2012 Rating: 5
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