Conspiracy of Dunces: Central bank manipulations in crisis

On Monday we discover further evidence that the Bank Of England in 2008 was pressuring banks to manipulate the LIBOR rates lower as a result of the financial crisis. At the time Mervyn King was the Governor of the Bank of England and his staff were said to be questioning UK banks — including Barclays […]

Fed’s July minutes already dated on BOE’s cut

On Wednesday the Fed will release its minutes from the July 26-27 meeting. The central bank was bullish on the June employment numbers and jawboned about still raising rates in its post-meeting statement. The meeting came before the Bank of England cut rates and moved back on the QE train as a result of the […]

Markets are unusually jittery for August

There are many one-offs occurring this week in the markets. Equity markets this week are finding it tough sledding, as stocks can’t find a direction as currency markets are taking the yen back to 101 level, meaning the Japanese currency is getting stronger against other currencies. This strengthening is generally negative for stocks due to […]

Brexit forces BOE’s Carney to throw the kitchen sink at it

Markets were flat in the US while awaiting the move by the Bank of England. The central bank cut its interest rate in half to 0.25% Thursday morning and will increase QE. As the news came out markets were still unsure of how to play the move. After 45 minutes US equities moved higher along […]

As England, so goes Yellen

What does the Bank of England’s decision on Thursday to leave its interest rate at 0.5% tell us? There is no economic growth across the pond, same as the US. The UK banks are still not right with their balance sheets and need to be supported and need more time to repair their impairments. Since […]