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The Impotence of the Central Banks

Governments do not want to acknowledge that a Central Bank does not have the ability to bolster the economy. Monetarism has not worked. The massive purchase of corporate bonds by the Central Banks has not worked. They have been left alone to face the problem and they have failed. The solution is to activate demand and Central Banks cannot do this.


This is my first stock photo. I chose this one because it did not require any expensive props. Feel free to use this image, just link to www.SeniorLiving.Org

Spain risk premium falls below 100 bp thanks to QE

Mari Pinardo | Do you remember the summer of 2012, when Spain’s risk premium reached a record high of no less than 638 basis points? Four summers later, this spread seems like it belongs to a completely different country. Since that fateful summer, Spain’s sovereign risk has declined nearly 550 bp and just last week broke the 100 bp threshold. There are basically three reasons which have pushed the risk premium through the 100 bp threshold: a date for Spain’s caretaker Prime Minister Mariano Rajoy’s investiture, the economic policies which have been in place in the Eurozone since April 2015 and the fact that it looks less likely the Fed will raise interest rates in September.







China Stock Market Slide

Shenzhen-Hong Kong Stock Connect: what you need to know

Wang Yuqian via Caixin | It will be another four months before the much-anticipated Shenzhen Hong Kong stock connect system finally goes online and provides another bridge between the mainland and the offshore stock markets. The stock exchanges in Shenzen and Hong Kong jointly made an announcement yesterday, providing investors with some details of how the system is going to work.

 

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