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It is now likely that the average real APR will hit a mindblowing 20% by the time the Fed finally pushes the economy into recession.
The net worth of American households saw a drop of $6.1 trillion in the second quarter of 2022 triggered by a decline in the stock market, according to a latest report by the Federal Reserve.
Germany Is Facing Increasing Risk of Stagflation, Minister Says: BloombergSep 12, 2022 - 12:06:27 PDT
German Deputy Finance Minister Florian Toncar warned that the country faces a growing threat of rising consumer prices and low growth rates.
Politicians talk about “jobs, jobs, jobs” because a steady income keeps people happy and (mostly) voting for incumbents. Carville once told us, “It’s the economy, stupid,” and it always has been. Economies in recession are usually bad for those in power.
Goldman Sachs To Kick Off Wall Street Layoff Season With Hundreds of Job Cuts This MonthSep 12, 2022 - 11:37:46 PDT
The bank is reinstating a tradition of annual employee culls targeting between 1% and 5% of lower performers in positions across the firm.
According to commentators, countering inflation requires monetary authorities to actively restrain the economy, with “experts” believing that higher interest rates need not cause an economic slump. Instead, they believe that the Fed cab orchestrate a “soft landing.” It is questionable, however.
On this episode of Radio Rothbard, Ryan McMaken and Tho Bishop look at the rhetoric surrounding the Federal Reserve. A growing chorus of pundits is attacking Jerome Powell for risking a recession, but this misses what has brought the economy to this point.
Sep 12, 2022 - 11:16:35 PDT
Sep 12, 2022 - 11:04:17 PDT
Freddie Mac’s 30-year mortgage commitment rate just rose to its highest level since … The Fed initiated Quantitative Easing (aka, fanatical money printing) during the financial crisis.C
People tend to hear what they want to hear and believe what they need to believe. In no place is this more true than on Wall Street. The Fed has made abundantly clear that it will tighten monetary policy until inflation is virtually vanquished. And yet, those who have no choice but to be nearly fully invested at all times have completely ignored this fact and were left trying to...
Money is one of the most misunderstood topics of our time, and we’re seeing the implications of this play out every day.
Sep 12, 2022 - 08:44:04 PDT
According to the Institute of International Finance, total global debt stands at over $305 trillion. That’s about 350% of global gross domestic product (GDP). Such numbers are, of course, mind-boggling but we have learned to live with them and accept a massive debt burden as normal.
Deflation On Deck? NY Fed Inflation Expectations Plunge To 2 Year Low, Dragged By Tumbling Gas Prices, Housing SlumpSep 12, 2022 - 08:41:00 PDT
With inflation expectations suddenly tumbling across the board, the best example of which is the collapse in 2Y Breakevens which are hitting fresh 2Y lows every day amid the ongoing collapse in commodity prices, which has prompted some (i.e., us) to rhetorically wonder last week when the Fed will start cutting rates...
Germany's decision to scrap its nuclear reactors before having replacement energy is in play.
Sep 12, 2022 - 08:34:06 PDT
China's export growth may have slowed compared to recent months, but it is nonetheless up 7.1% year on year in August. I don't know what the global figures are, but I suspect that China continues to grow its share of total exports.
As a Libertarian, Truss is starting off on the wrong foot with promises of large-scale state intervention and possibly price caps on natural gas that cannot possibly work.
Sep 12, 2022 - 08:28:31 PDT
Our hoot of the day goes to former NY Fed president Bill Dudley for his comments on the Fed's balance sheet.
Housing crash? You bet. Let's discuss the details.
The Federal government reaction to the Covid outbreak in early 2020 included massive monetary stimulus, Federal government spendathons and Biden’s green energy policies have resulted in a sizzling 8.5% inflation rate (update on Monday morning). The problem is that The Federal Reserve is far behind the inflation curve with their target rate at only 2.5%. And The Fed’s balance sheet remains near $9 TRILLION in assets held.
Another Sign of Recession? Americans’ ‘Financial Health’ Fell for the First Time in Five Years: MWSep 12, 2022 - 07:52:30 PDT
A person who is ‘financially healthy’ spends less than they earn, pays bills on time, and has sufficient liquid savings and long-term savings.