Gold has all the potential to go unprecedentedly high. But silver will be gold on
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The thing many investors are not taking into consideration is that if the market falls like a flash crash on steroids they could be trapped.
Fed's George Says Central Bank Watching Stocks, Confirms Fed Ok With Lower PricesMay 19, 2022 - 08:53:25 PDT
Ever since the Fed realized it had made a horrible mistake by repeating - erroneously - for almost a year that inflation is transitory, and is now hell bent on crushing the same inflation it spawned by injecting trillions into the system, and which it somehow hopes to do by sparking a recession and a bear market, one Fed speaker after another has tried to convince...
US Existing Home Sales Slump To 2-Year Lows, NAR Warns "More Declines Imminent"May 19, 2022 - 08:51:35 PDT
Soaring mortgage rates, plunging mortgage applications, housing starts and permits slumping, homebuilder sentiment hammered, and now labor market stress... it is no surprise that analysts expected another monthly drop in existing home sales in April. US existing home sales fell 2.4% MoM (worse than the 2.3% MoM drop expected), Worse still, this drop was from a revised-lower 3.0% MoM drop in March (from -2.7% MoM)
“For my money, those alligator jaws look more likely to snap shut than to open even wider,” I wrote at the time. Indeed, the energy sector has risen more than 60% over the past twelve months, outperforming the index, while the combined tech and communications services sectors have fallen, underperforming the index, resulting in those alligator jaws closing to some degree.
That debt servicing costs do indeed become untenable and it results in debt-deflation. With another central bank bailout off the table (sigh, at least for now (roll of eyes)), debt-deflation looks increasingly like it is coming.
Why Elizabeth Warren's Proposed “Anti-Price Gouging” Law Would Be a National DisasterMay 19, 2022 - 08:18:11 PDT
Senator Elizabeth Warren is among a cadre of progressive Democrats proposing legislation that would ban “price gouging.” The legislation is a recipe for disastrous consequences that would only hurt the people it's designed to protect.
It's said there's no problem so big that the government can't make it even worse. Beset now by raging inflation and supply shortages, governments around the world are scrambling to bring prices down and protect their economies. This is leading to a number of truly bad ideas – like price controls – that have a proven track record of failure every time in history they’ve been tried.
The ties that bind the global economy together, and delivered goods in abundance across the world, are unravelling at a frightening pace.
A gas station chain is reprogramming its pumps in Washington state to accommodate $10-a-gallon fuel prices as the average price of gasoline across the country soars to $4.57.
May 19, 2022 - 07:52:57 PDT
While officials stressed that the current situation is far less dire than the winter omicron-variant surge, they cautioned that the country will be ill prepared to respond effectively in coming months if Congress does not soon appropriate billions of dollars in coronavirus aid to buy a new tranche of antiviral treatments, vaccines and tests.
Yellen also warned of the potential for slower growth to combine with inflation worldwide: “Higher food and energy prices are having stagflationary effects, namely depressing output and spending and raising inflation all around the world,” she told reporters.
Borrowers with limited or troubled credit histories are defaulting on credit cards, car loans and personal loans
May 19, 2022 - 07:14:47 PDT
Janet Yellen did a complete flip-flop in her economic assessment from yesterday to today. Let's also take a look at past performances.
Gold prices bounced back as a drop in U.S. dollar and Treasury yields coupled with a slide in risk assets rekindled demand for the safe-haven bullion.
Stock Futures Decline Again With the S&P 500 on the Brink of a Bear MarketMay 19, 2022 - 06:08:14 PDT
Stock futures were under pressure Thursday, a day after Dow Jones Industrial Average experienced its biggest one-day drop since 2020.
May 19, 2022 - 06:03:08 PDT
Nothing is going to stop this grand economic collapse from happening. All you can do is protect yourself in the limited ways available and just ready yourself mentally for facing it.
The Global Economy Is in Danger of Entering a Period of So-Called Stagflation: WSJMay 19, 2022 - 05:59:34 PDT
Treasury Secretary Janet Yellen on Wednesday became the latest leader to warn of turbulence for the global economy. “Certainly the economic outlook globally is challenging and uncertain,” Ms. Yellen said in Bonn, Germany, ahead of a meeting of leaders of seven wealthy nations. “Higher food and energy prices are having stagflationary effects, namely, depressing output and spending and raising inflation all around the world.”
‘We Did Not Have a Plan for a Country To Shut Down’ – China Lockdown Affects Supply & Outlook: CiscoMay 19, 2022 - 05:53:35 PDT
Cisco Systems Inc. shares plunged in the extended session Wednesday after the tech bellwether’s revenue forecast came up more than $1 billion short of Wall Street expectations, which executives blamed on COVID shutdowns in China.
A global bond rally extended into Thursday as investors hunted for havens amid a risk-asset rout on concerns a US recession is becoming more likely.
This is shaping up to be the most volatile year for Treasuries in over a decade, as uncertainty about the impact of aggressive Federal Reserve tightening whipsaws yields.