- Stephen Roach says negative interest rates set stage for next crisis – “by imposing penalties on excess reserves left on deposit with central banks, negative interest rates drive stimulus through the supply side of the credit equation — in effect, urging banks to make new loans regardless of the demand for such funds. This misses the essence of what is ailing a post-crisis world. As Nomura economist Richard Koo has argued about Japan, the focus should be on the demand side of crisis-battered economies, where growth is impaired by a debt-rejection syndrome that invariably takes hold in the aftermath of a ‘balance sheet recession.'” // GLAD TO SEE RICHARD KOO GETTING MENTIONED. HE PREDICTED A LOT OF WHATS HAPPENED IN THE LAST 10 YEARS. HIGHLY RECOMMEND HIS BOOKS ON BALANCE SHEET RECESSIONS: The Holy Grail of Macroeconomics & The Escape from Balance Sheet Recession and the QE Trap
- Write up about @Nanexllc’s Eric Hunsader – “Hunsader’s research has made him a sought-after adviser to traders, broker-dealers and academics.” “Hunsader, sure he’d identified a core structural issue, later published more than 2,000 more reports — some a few sentences, others more detailed explanations of how he says markets are manipulated.” // SUPER SMART GUY, HAS BUILT SEVERAL BUSINESSES, HAS LOTS OF ENEMIES WHO LIKE TO PRETEND HE DOESN’T EXIST OR CALL HIM CRAZY.
- Federal Reserve’s FOMC statement (PDF) from January 27, 2016 – “The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.”
- Uber losing $1 billion a year to compete in China // I HAVE MY DOUBTS THE WAR FOR USERS WILL END WELL FOR THE ON-DEMAND DRIVER APPS. SWITCHING COSTS ARE LOW WHEN SUBSIDIES END AND NO ONE CARES IF THEY USE SAME APP AS THEIR FRIENDS (NETWORK AFFECT). MUCH TOO EASY TO INSTALL ANOTHER APP AND APPLE PAY JUST MAKES IT EVEN EASIER TO SWITCH SINCE USER WON’T HAVE TO ENTER CC#.
- Info-graphic of all the worlds exchanges [image only] [via]
- World total value = $69 trillion;
- Shanghai = $4.46; Shenzhen = $3.42;
- NYSE = $18.48; NASDAQ = $7.45;
- US exchanges ~ 37.6%; China exchanges ~ 11.4%.
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