Gold has all the potential to go unprecedentedly high. But silver will be gold on
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Gold prices rose on Thursday as economic concerns returned to the fore and traders awaited U.S. data for hints on the Federal Reserve's policy trajectory.
All through the period when trouble was brewing at Silicon Valley Bank, the Federal Reserve was taking steps that effectively discouraged examiners from doing much about it.
"Whatever one thinks about a proportional income tax, the principle of declining marginal significance of income doesn’t justify progressive income tax rates. Neither does it justify progressive mortgage interest rates." ~ Charles W. Baird
Apr 27, 2023 - 08:08:29 PDT
Ever since 11 banks on March 16 donned the garb of heroic fire fighters, rushing to extinguish an inferno at a competitor bank before it spread further, we have been asking ourselves the question – why just this group of 11 banks.
Central banks will likely pause rates for an extended period before they begin easing, but investors should brace for other scenarios.
How a Higher Inflation Target Would Hit Markets, Banks’ Exposure to CRE, Blowups of Subprime...Apr 27, 2023 - 07:35:46 PDT
And other Goodies. Wolf Richter on This Week in Money.
Apr 27, 2023 - 07:32:23 PDT
So much for the hopium spread by the Biden Administration and Realtors in general. US Pending Home Sales crashed -23.3% YoY and -5.2% MoM for the 16th straight month of negative growth in pending h…
Major central banks are standing down from their offer of daily emergency dollar loans to banks, a crisis step launched after the collapse of Silicon Valley Bank in the U.S. fed fears about the stability of the global financial system...
Sen. Rand Paul, R-Ky., voices his concerns over the devaluing of U.S. currency on 'Kudlow.'
Stagflation: Q1 GDP Much Weaker Than Expected On Inventory Plunge As Inflation Comes In Red HotApr 27, 2023 - 05:57:39 PDT
Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, had a far more downbeat view. He said that “this morning’s data was the worst of both worlds, with growth down and inflation up... Given that Core PCE is nowhere near the Fed’s 2% target (e.g. rising to 4.9% from 4.4%), the Fed clearly needs to keep raising rates (because of inflation) and they are going to be raising rates right into a slowdown. We are beginning to worry that stagflation is a real possibility.”
In the new post-revision world of jobless claims, the number of Americans applying for unemployment benefits for the first dropped modestly last week from 246k to 230k (but remains well above the 200k Maginot Line). Continuing claims was practically flat from the prior week at 1.88 million.
The classic commodities recession play of switching from oil to gold is well underway, but it’s far from a smooth progression as investors juggle signals from the Federal Reserve and China’s stuttering post-virus recovery.
Some Australian super-fund managers are concerned bonds and equities are vulnerable and instead are turning toward commodities to guard against the prospect of global stagflation.
Apr 27, 2023 - 05:50:21 PDT
The largest part of this, CHF24.2 billion, stems from its foreign-currency hoard, as global bond and equity markets recovered from turmoil last year. It also saw a 4.3 billion-franc profit on its gold holdings.
Tech Bulls Are Flirting With Disaster as Banking Pressures Threaten to Crash the Stock MarketApr 27, 2023 - 05:47:59 PDT
Carefree tech investors are "smoking in the dynamite shed" as banking turmoil could bring stocks crashing down, Larry McDonald said.
The yen was in a holding pattern as the Bank of Japan began a two-day policy meeting, the first under new governor Kazuo Ueda. Europe's single currency ticked up 0.05% to $1.10415, edging back toward the overnight peak at $1.1096, the highest since April of last year. Germany again revised up growth forecasts on Wednesday, and a survey showed a continued pickup in...
The dollar remained under pressure and world share markets were trying to stay positive on Thursday, as ongoing rumbles in the U.S. banking system kept investors cautious ahead of a barrage of top-tier European and U.S. data. London, Paris and Frankfurt stocks nudged into positive territory as reassuring earnings from UK bank Barclays, Germany's Deutsche Bank...
First Republic's rivals will end up paying for its struggles, whether it survives or gets seized by the FDIC.
Even after netting a tidy profit from the recent banking turmoil, Boaz Weinstein isn’t gloating. In fact, he says, the big gains for those wagering on a credit crunch are only just getting started.
A week before the Federal Reserve’s next meeting, JPMorgan Chase & Co. unveiled an artificial intelligence-powered model that aims to decipher the central bank’s messaging and uncover potential trading signals.