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The banking crisis is spreading - get Mike Maloney's latest thoughts in today's live update.
Gold price resume the upside on Wednesday, boosted by risk aversion across financial markets, triggered by worries about the health of Credit Suisse.
Nouriel Roubini, chairman and CEO at Roubini Macro Associates, discusses the turmoil at Credit Suisse and its impact on financial markets, the path of inflation, and investment strategy on “Bloomberg Surveillance.” (Source: Bloomberg)
Looming Bank Failures Point to More Price Inflation as Real Wages Fall AgainMar 15, 2023 - 12:19:43 PDT
The federal government’s Bureau of Labor Statistics (BLS) released new price inflation data today, and according to the report, price inflation during the month decelerated slightly, coming in at the lowest year-over-year increase in eighteen months.
With the apparent failure of Silicon Valley Bank (SVB) potentially causing a crisis in the American and even the global financial system, we will be treated to all manner of explanations, very few of which will accurately state the cause of these troubles: fractional reserve banking.
I expect Goldilocks to be temporary, maybe very temporary because typically when the Fed halts a rate hike regime that is when troubles brewing beneath the surface..
.. to be the Poster Child for its Digital Currency Launch.
According to the Mauna Loa Observatory, the rate at which carbon dioxide is accumulating in the Earth's atmosphere continued slowing in February 2023. As a global economic indicator, that change suggests the world's economy slowed along with it.
As the Pentagon unveils its $842 billion budget request for fiscal 2024, the prospect of a $1 trillion defense budget looms.
Treasury Market Glitches Out As Liquidity Disappears; Fed Funds, SOFR Futures HaltedMar 15, 2023 - 12:11:27 PDT
Last night, we shared with readers the latest views by Goldman flows guru who raised many alarms, but most notably perhaps his observations that Treasury market liquidity has completely vaporized, to wit: "10 year bond futures DV01 liquidity is 19K. This is the lowest since March 23rd, 2020 (Covid times). At the start of March 2023, you could trade 114k DV01 on the screens, and today is 19K, a decline in 83% month-to-date."
First Republic Downgraded by S&P from Confidence-Inspiring-LOL “A-” Investment-Grade to BB+, One Itty-Bitty Notch into Junk....Mar 15, 2023 - 12:10:25 PDT
We laugh, but it’s a start. SVB Financial collapsed with investment-grade ratings.
We have seen wild action in US treasuries in the past week. Traders plowed into leveraged bond shorts expecting more hikes.
Mar 15, 2023 - 12:07:23 PDT
Credit Suisse Group AG shares fell more than 25% Wednesday and hit a fresh record low, reflecting increasing concerns that troubles that hit regional U.S. banks have migrated across the Atlantic.
Mar 15, 2023 - 09:19:27 PDT
Market now expects FED to hike max. one more time by 25bps followed by 125bps cuts in total by end of 2023. And bond volatility is up the most since … the last financial crisis. No, not the K…
Credit Suisse CDS Explodes: Reportedly Urged SNB 'Show Of Confidence', ECB Quantifying ExposuresMar 15, 2023 - 09:17:56 PDT
It is possible that the regional banking crisis is not yet resolved and may even be spreading across the Atlantic.
Should the markets’ worst fears on Credit Suisse come true, the euro-area economy will fall off a cliff, upend the global financial system and bring policy tightening by major central banks to a screaming halt.
Mar 15, 2023 - 07:59:23 PDT
You can’t have the country feeling that it doesn’t matter if they save ... [You] could do whatever you want, because the government will bail you out
"When it comes to fiscal follies, this time is different. Let’s not pass the buck. Instead, let’s make the necessary sacrifices to ensure the long-run integrity of the United States. Let’s plant the trees." ~ Alexander William Salter
The Fed's approach is to reduce the cost of labor by causing a recession so that people stop eating out. This will not reduce the price of labor (wages will not go down) nor will it do anything for the cost of food itself.
The high-profile collapse of Silicon Valley Bank last week is a story about bad debt, just not in the way most people think.