Tag Archives: Robert Eisenbeis

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Cumberland Advisors Market Commentary – Overshadowed?

Author: Robert Eisenbeis, Ph.D., Post Date: November 19, 2019
Federal Reserve - FOMC

Public attention this past week was riveted on the impeachment testimony before the House Intelligence Committee, which totally overshadowed Chairman Powell’s semiannual report and two days of testimony to Congress on monetary policy. That outcome is probably not a bad one, since there were no new insights provided nor any clues as to when or […]

What the FOMC Said

Author: Robert Eisenbeis, Ph.D., Post Date: November 1, 2019
Cumberland Advisors' Robert "Bob" Eisenbeis, Ph.D.

Following the FOMC’s announcement of its third consecutive rate cut after its meeting this week, speculation immediately broke out among market participants about whether additional cuts or even rate increases might be on the horizon going into 2020. However, such speculation is probably more noise than substance at this point, since the Committee’s statement was […]

Taxing Wealth Instead of Income, Part 2

Author: Robert Eisenbeis, Ph.D., Post Date: October 15, 2019
Cumberland Advisors' Robert "Bob" Eisenbeis, Ph.D.

As a follow-up to David Kotok’s piece last week on taxing wealth (https://www.cumber.com/cumberland-advisors-market-commentary-wealth-tax/), it may be useful to remind readers what the potential incentive effects might be when it comes to the implications of wealth tax proposals to tax wealth may have on entrepreneurs and business structures. Proponents of a wealth tax are motivated by […]

Cumberland Advisors Market Commentary – The Market Knows

Author: Robert Eisenbeis, Ph.D., Post Date: October 7, 2019
Cumberland Advisors' Robert "Bob" Eisenbeis, Ph.D.

The Federal Reserve Bank of New York announced on Friday, Oct 4 that it would continue to offer a maximum of $75 billion in overnight repurchase agreements and at the same time offer a series of term repos through at least November 4 according to the following schedule:[1] This extension seems to be an attempt […]

Repo Market, Monetary Policy, & Liquidity Discussion – An On-Demand Webinar

Author: Cumberland Advisors, Post Date: October 5, 2019
On-Demand Webinar - How does the Repo Market, Monetary Policy, & a Liquidity crunch affect Financial Markets

In early September 2019 there was an unusual spike in rates in the repurchase (“repo”) market causing a liquidity squeeze on broker-dealers that use repos to finance their portfolios of Treasury and agency securities.  It remains a mystery as to what catalyzed the liquidity squeeze.  The response by the Federal Reserve Bank and market participants […]

Cumberland Advisors Market Commentary – Repos and Reverse Repos

Author: Robert Eisenbeis, Ph.D., Post Date: September 27, 2019
Cumberland Advisors' Robert "Bob" Eisenbeis, Ph.D.

The week of September 16 saw the Federal Reserve Bank of New York inject funds into the repo market in response to an unusual spike in rates that was above the initial target range for the federal funds rate of 2.0–2.25%. (The target rate was lowered to 1.75–2.00% after the close of the FOMC’s meeting […]

Cumberland Advisors Market Commentary – MMT and Camp Kotok

Author: Robert Eisenbeis, Ph.D., Post Date: August 26, 2019

As David Kotok noted in his description of the intellectual discussions that occurred at Camp Kotok in Grand Lake Stream, Maine, one of the topics was so-called Modern Monetary Theory, or MMT.[1] There were four panelists, who were asked to take different sides for the sake of argument, representing positions from the most favorable to […]

Cumberland Advisors Market Commentary – The Payments Modernization Act

Author: Robert Eisenbeis, Ph.D., Post Date: August 22, 2019
Cumberland Advisors' Robert "Bob" Eisenbeis, Ph.D.

Legislation has recently been introduced to require the Federal Reserve to develop a real-time payments system to compete with existing systems. Interestingly, a short time after the introduction of the legislation, the Federal Reserve announced its intention to proceed with plans to develop just such a system. In describing the intent behind the legislation, co-sponsor […]