Gold has all the potential to go unprecedentedly high. But silver will be gold on
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The world’s central banks are scrambling to tackle runaway inflation, but the solution may just be to ramp up fossil fuel production
"Spend Now, and Deal with the Consequences Later" Is the Worst Policy: LacalleOct 20, 2022 - 07:59:18 PDT
Quantitative easing was designed as a tool to provide time for governments to implement structural reforms, boost growth, and strengthen the economy. However, it has become a tool to increase the size of government and take increasingly riskier levels of debt.
The average square footage in new single-family houses has been declining since 2015. House sizes tend to fall just during recessionary periods. It happened from 2008 to 2009, from 2001 to 2002, and from 1990 to 1991.
It was a fight! My keynote presentation at the New Orleans Investment Conference pitted the Fed against gold, me playing both parts by using different caps when one or the other was talking.
After the collapse in housing starts data (and mortgage applications and homebuyer confidence and homebuilder sentiment), it should be no surprise that analysts expected existing home sales to continue their streak of declines in September.
Oct 20, 2022 - 07:01:10 PDT
US 30-year mortgage rates rose to 7.20% yesterday, the highest rate since 2000. Why?
Core inflation is rising and its the highest since 1992. Diesel prices, the all-important fuel for the transportation industry, is rising again after a brief respite and is near the all-time high.
Muthoot Finance Ltd. is extending a trend in emerging Asia that’s dragged down bond issuance in the US currency to its lowest since 2015. Debt offerings from Asia ex-Japan in the greenback have almost halved to about $158 billion so far in 2022 compared with the year-earlier-period, while an Indian company hasn’t issued in the market since April.
Update: U.K. Prime Minister Liz Truss has announced her resignation just 44 days after taking office, after a risky plan to cut taxes and boost spending caused turmoil on financial markets, forcing her to backtrack and her political authority to disintegrate.
The labor market has been largely resilient, though some cracks are emerging as the Federal Reserve ramps up its monetary policy tightening campaign. The U.S. central bank has hiked its policy rate from near-zero at the beginning of this year to the current range of 3.00% to 3.25%, and officials have signaled more large increases were on the way this year with inflation showing little sign yet of a substantial retreat.
The Fed’s hawkishness has caused an enormous amount of wealth destruction. As the chart below shows, US stocks and bonds have created a drawdown of $18 Trillion in the US equity and fixed income markets, far worse than 2008 and 2020’s market value destruction. Yet, despite this the Fed maintains that a “soft landing” is still attainable in this downturn. We believe this “soft landing” will be about as accurate as their prior contention that “inflation is transitory”.
Musk, Bezos, Dimon among prominent CEOs warning of recession.
Backtracking on aid plan exposes households to surge in prices Government’s fiscal plan will have a big impact on economy
The dollar hit the symbolic level of 150 yen for the first time since 1990 on Thursday as the greenback was supported by Treasury yields trading at multi-year highs, keeping markets on high alert for intervention from Japanese authorities.
Chinese banks maintained their benchmark lending rates for a second month, with economists dialing down expectations for further central bank easing as the yuan continues to weaken.
Japan’s benchmark yield climbed above the central bank’s policy ceiling and monetary authorities announced unscheduled bond purchases to rein it back in.
The world’s biggest banks have already had to use about $30 billion of their own cash this year to fund loans for acquisitions and buyouts that they weren’t able to offload to investors.
When Covid sent the UK economy into lockdown in 2020, the government jumped in to help the property market by cutting a tax on purchases. The temporary measure triggered a kind of mania among buyers, who responded by bidding up average prices by £31,000 ($35,000) — more than double the maximum tax saving.
Federal Reserve Bank of St. Louis President James Bullard said he expects the central bank to end its ‘’front-loading” of aggressive interest-rate hikes by early next year and shift to keeping policy sufficiently restrictive with small adjustments as inflation cools.
One of the most popular and enduring government programs in U.S. history, Social Security has funded the lives of senior citizens for more than 80 years. As a result, today the senior poverty rate clocks in at a mere 9%. …
The selloff in Chinese assets is intensifying as this week’s Communist Party Congress disappoints traders wanting relief from a strict Covid-Zero policy and help for an economy mired in a property crisis.