Silver as an investment

Category Archives: Stephen Roach

Stephen Roach: “Central Banking Has Lost Its Way, Is In Crisis”

Authored by Stephen Roach, originally posted at Project Syndicate, In what could well be a final act of desperation, central banks are abdicating effective control of the economies they have been entrusted to manage. First came zero interest rates, then quantitative easing, and now negative interest rates – one futile attempt begetting another. Just as […]

Don’t Blame China For Market Insanity… Says China

When it comes to geopolitics, all anyone wants to talk about is Syria. And understandably so. When it comes to financial markets, all anyone wants to talk about is China – an equally understandable fixation. To be sure, China was already a big driver of risk on/ risk off sentiment going into August of 2015. […]

The Fed Has Created A “Monster” And Just Made A “Dangerous Mistake,” Stephen Roach Warns

Stephen Roach is worried that the Fed has set the world up for another financial market meltdown.  Lower for longer rates and the proliferation of unconventional monetary policy have created “a breeding ground for asset bubbles, credit bubbles, and all-too frequent crises, so the Fed is really a part of the problem of financial instability […]

Stephen Roach: “The Fed Has Set The Market Up For A Crisis”

“The Fed is in total denial. It hasn’t learned the lessons of what it put the world through a decade ago,” Stephen Roach said, back in January. “I just go back to 2005 and 2006 where the Fed was so incremental in normalizing rates during a time of enormous froth in property markets, equity markets, […]

And the Renminbi Bloodletting Begins…

By Chris at Last week at my son’s football game, a fellow parent remarked to me that bald heads are cool. I actually thought the guy may be off his rocker a bit, but then I figured that maybe he was trying to be nice as I’ve got more hair on my big toe than […]

The Irony Of Market Manipulation

Having gazed ominously at the extreme monetary policy smoke-and-mirrors intervention in bond markets, and previously explained that "the stock market is to important to leave to the vagaries of an actual market." While the rest of the world's central banks' direct (BoJ) and indirect (Fed, ECB) manipulation of equity markets, nobody bats an eyelid; but […]

Pre-Blame-Game Begins: Fed’s Brainard Fingers HFT For “Amplifying Market Shocks”

We warned previously that when (not if) the market crashes next, The Fed is going to need a scapegoat (other than British traders living at home with their parents) and judging by The Fed's Lael Brainard's comments today, high-frequency-traders (HFT) are in the crosshairs. Crucially, Brainard warns that HFT "may amplify market shocks," and The […]

Putting The ‘Great’ In Great Depression, Stephen Roach Warns On TPP’s Currency Rules

Authored by Stephen Roach, originally posted at Project Syndicate, As the US Congress grapples with the ever-contentious Trans-Pacific Partnership – President Barack Obama’s signature trade legislation – a major stumbling block looms. On May 22, the Senate avoided it, by narrowly defeating – 51 to 48 – a proposed “currency manipulation” amendment to a bill […]

Stephen Roach Derides Central Bankers’ Mass Delusion

Authored by Stephen Roach, originally posted at Project Syndicate, The world economy is in the grips of a dangerous delusion. As the great boom that began in the 1990s gave way to an even greater bust, policymakers resorted to the timeworn tricks of financial engineering in an effort to recapture the magic. In doing so, […]

“Monetary Policy Has Lost Any Semblance Of Discipline,” Stephen Roach Slams “QE Lemmings

Submitted by Stephen Roach via Project Syndicate, Predictably, the European Central Bank has joined the world’s other major monetary authorities in the greatest experiment in the history of central banking. By now, the pattern is all too familiar. First, central banks take the conventional policy rate down to the dreaded “zero bound.” Facing continued economic […]