Calls For “Helicopter Money” Grow As G7 Meeting Betrays Global Growth Jitters

Finance chiefs from the G7 economies are meeting in Japan this weekend ahead of next week’s G7 summit. At the top of the agenda: sluggish global growth. As anyone who follows global macro is acutely aware, Japan is in many ways the poster child for subdued economic activity. Last year, the country received the rather…

Here’s What To Watch Ahead Of The All Important June Fed Decision

Well, here we go again. Both crude and stocks got off to a rocky start on Thursday as the Dow plunged triple digits and oil fell more than 2.5%. The culprit: why, the Fed of course. This week has reinforced the market themes that have played out for most of this year. On Monday we…

Fed Stuns Market With Hawkish Meeting Minutes, June “Live” After All

Surprise, surprise. Minutes from the Fed’s April meeting are out and the message is overwhelmingly hawkish. June is “live” after all. Equity markets immediately dipped into the red although after yesterday’s commentary from Williams and Lockhart, investors probably should have expected this. In hindsight, it looks like the San Francisco and Atlanta Fed chiefs were…

Trouble With The Curve? Yield Curve Flattens Most Since 2007 While Goldman Turns Bearish On Stocks

On Tuesday, equity markets stumbled after a firm CPI print and upbeat commentary from the San Francisco Fed’s John Williams and Atlanta Fed President Dennis Lockhart seemed to suggest that a June rate hike might still be a possibility. The triple digit decline on the Dow represented a return to a perverse dynamic created by…

Stocks Swoon As Good News Is Still Bad News

It was just yesterday when Richmond Fed chief and consummate hawk Jeffrey Lacker told The Washington Post that in his view, the FOMC needs to “catch up” after falling behind the curve (no bond market pun intended) on policy normalization. Whatever impetus there was for a March hike promptly disappeared after stocks got off to…

Going To Zero? LendingClub Tumbles After Disclosing DoJ Subpoena

Going into this week, some traders assumed things couldn’t get any worse for LendingClub. Shares in the beleaguered marketplace lender tumbled last week following an internal investigation into falsified loans sold to Jefferies and after it was revealed that CEO Renaud Laplanche failed to tell the board about a stake he had in a fund…

Lower For Longer: Street Bets On Treasury Rally As Top Fed Official Warns On Policy

"I think markets may be extrapolating from our recent behavior and thinking all we do is delay.” That’s from Jeffrey Lacker and it’s entirely accurate. Lacker has been a vocal critic of the FOMC’s easy money policies for years and on Monday, The Washington Post published an exclusive interview with the Richmond Fed chief. Back…

Bulls Run As Goldman Oil Call Sparks Rally

If everyone is being honest, forecasting commodities prices further out than say six or so months is well nigh impossible. There are just too many inputs. That goes double for oil, the most financialized of all commodities. As I wrote last week, the market is now trading almost exclusively off crude. Sure, there are myriad…

Which Came First, The Fed, China, Or Oil?

Last September, Janet Yellen adopted the now famous “dovish relent.” A little over three weeks earlier, China “shocked” the market with a “surprise” devaluation of the yuan. To be sure, no one should have been taken off guard. China is an export driven economy with a currency tethered to the dollar. As the dollar moved…

More Downside For LendingClub And P2P? Signs Point To Yes

It was just three days ago when I asked the following question: “does the disaster at LendingClub foretell the demise of marketplace lending?” While it’s ultimately too early to know the answer, it’s worth noting what’s happened since then. If you read that post, came away bearish, and acted on your newfound pessimism, you’d have…