Since rents aren’t fully reflected in the Consumer Price Index, we’re behind the curve. And the Fed, which relies on the PCE index, “won’t even see the curve,” says Lee Adler in this must-see video (with chart) that raised my blood pressure.
Entries in Federal Reserve (255)
It's been glorious: global M&A in Q2 soared 47% to $1 trillion, highest since 2007, just before the financial crisis. In California, 30% of the people making less than $40k were in worse financial shape than last year, despite all the bubbles being inflated around them.
“Asset prices have reached stunning levels, obviously out of line with ‘fundamentals.’ The “most dangerous” are housing bubbles; when they burst, they “wreck whole economies.”
Banks are again taking the same risks that triggered the financial crisis, and they’re understating these risks. It wasn’t an edgy blogger that issued this warning but the Office of the Comptroller of the Currency. And it blamed the Fed’s monetary policy.
Just How Crazy Is The Biggest Credit Bubble in History? See The Doomed Muni Tobacco Bonds In Your Conservative Bond Fund
Ah, the spine-tingling pleasures of having this delicious breed of bonds in your conservative-sounding bond fund.
“We fear that, once the effects of monetary stimulus disappear in the US, the weakness of the economy due to income inequalities may suddenly be revealed.”
Now that the Fed is pulling back from its money-printing binge, the IMF, the global bondholder bailout outfit, is starting to panic.
By David Stockman: Coach just had an earnings fiasco. Sales plunged 21%. Prospects are worse for the period ahead. Store closings are coming. That's the payoff for playing the destructive game of the Wall Street casino.
By Jeff Clark: There were no surprises in the Fed’s announcement yesterday. But interest rates may give us one anyway. Take a look at this chart of the 30-year Treasury bond yield.
The fundamental and largely invisible shift in Western economies from the markets to central management.
By Lee Adler: Here’s something I missed that started back in May, and it just got bigger. It makes me mad as hell. And it should make you mad as hell too.
It always starts with a toxic mix: Home sales plunged and inventories jumped in May. The housing market is buckling under its own inflated weight.
By David Stockman: These realities reflect a dangerous fiscal and social policy breakdown. They're also thumping proof that monetary policy has exactly nothing to do with employment conditions and job creation.
By Doug Kass, President of Seabreeze Partners: Fear has been driven from Wall Street, and there is no concern for downside risk.
By Chriss Street: After their May 21 meeting, the Fed stated that they saw no inflation risk in fueling job growth. Then came the JOLTS report for jobs and hiring that Fed Chair Yellen said she closely follows. And it was red hot.
Wiping out in one fell swoop six years of carefully orchestrated propaganda, St. Louis Fed President James Bullard admitted the Fed had dropped the ball during the prior bubble that blew up the financial system, and that it's dropping the ball again during the current bubble.
There comes a time when risk just disappears, when nothing can go wrong, when there are no dark clouds on the horizon. The Fed has a measure for it: the Financial Stress Index.
When the home-sales curve kinked south last fall, soothsayers had some handy reasons. And it would be temporary. Month after month, they came up with new reasons. Now they’ve used up all the good ones, but sales are still tanking.
It was a very basic question: Have there been times when you did not have enough money to buy the food you or your family needed? In wealthy countries, the percentages should be small, and given all the money-printing, it should be zero, you’d think.