Fed shifts to propping up consumption by businesses and governments, and away from propping up asset prices.
Labor Department today: People on state & federal unemployment insurance jumped to 31.5 million, worst ever.
Bureau of Labor Statistics today: 4.8 million jobs created, unemployment dropped by 3.2 million.
BLS under-reported unemployment by 13.7 million, based on data from the Labor Department. What’s happening is infuriating. Read and cringe.
Hahahaha, that should have been the universal headline.
Rents in San Francisco are still crazy-overpriced.
To mark this moment in the history of insane stock prices where a tiny automaker with a global market share of 0.5% and a big loss in 2019 became the most valuable automaker in the world.
Still waiting for the “Pent-up Demand.”
No, it’s not yet a reflection of home prices during the Pandemic. Be patient. Reporters or spaghetti-code algos should have read the methodology before misleading their readers.
Answers emerge from the murky business of CLOs.
Central-Bank Forked-Tongue Syndrome.
The market is facing a historic mess.
Here are the 84 companies whose bonds the Fed bought, and the 16 bond ETFs it now holds.
Sense of Foreboding in Hong Kong. Beijing’s black-box approach doesn’t bode well for local freedoms.
But the downturn in the goods-based sectors started in 2018. US exports are now down 37% from that peak, imports down 25%.
A zombie well before the pandemic, the UK company had racked up huge debts to finance rapid growth in a sector that had started shrinking some time ago.
Household Income Drops from Historic Spike, Spending Bounces off Historic Plunge But Remains Low. Income from wages & salaries remains crushed.
We’ve lost half-dozen retailers — restaurants, clothing, massage… Tenants who in effect said, sue me, I’m taking a hike. And replacement shop tenants are just behind spotted owls on the endangered species list.
Had a setback. Over 11 million gig workers on unemployment insurance. But four states, including Florida, still can’t process federal PUA claims.
These Charts Show What Mess Businesses Face Going Forward.
Owner of a small cafe that specializes in fine cakes and sandwiches tells me: “We’ll be lucky if we get half the normal number in July and August.” It’s now “all about damage control.”
Entire market of 3,451 stocks minus “Giant 5” is down 1% from Jan 2018. But wow, the volatility! You would have been better off with a despicable freaking savings account.
If the pandemic changed where Americans want to live – dense urban centers or suburbs – it will be one of the most far-reaching developments.
But the ECB went into high gear to soothe the pain of the banks.
Fed leads in trimming its balance sheet; Now Bank of England governor publishes the reasoning for central banks to shed assets – before raising interest rates. A big shift!
First signs of a very slow-moving mess.
The AMLO government, which has refused to bail out shareholders and bondholders of large companies, could be on to something: A form of capitalism where investors, not taxpayers, carry the risks.
It’s all about money, but whose money?
I’m sharing this trade for your future entertainment so you can hail me as the obliterating moron that infamously shorted the greatest rally floating weightlessly ever higher above the worst economic and corporate crisis imaginable.
The Big Shift: Fed shifts to propping up consumption rather than asset prices.
29.2 million people still claim unemployment insurance, gig workers 1/3 of total. Some states still not processing claims under federal programs. My “Reasonable Approximation” for the Unemployment Rate.
No “V-shaped recovery back to normal.”