THE WOLF STREET REPORT: Something Big Has Already Broken: Price Stability by Wolf Richter • Oct 9, 2022 • 331 Comments The Fed will tighten “Until Something Breaks” and then pivot? Wait a minute…
Shock & Awe Balance Sheet Reduction at the Bank of Japan: Assets Drop 7.3% from Peak by Wolf Richter • Oct 7, 2022 • 84 Comments Inflation spiking, yen getting beaten half to death, yield peg under attack, and Kuroda’s term won’t expire till April. Here’s what the BOJ did.
Most Contorted Job Market Ever Struggling to Revert to Normalcy? by Wolf Richter • Oct 7, 2022 • 154 Comments Last jobs report before next Fed meeting. Not giving the Fed any material for second thoughts about ratcheting up its rates.
Fed’s QT: Total Assets Drop by $206 Billion from Peak by Wolf Richter • Oct 6, 2022 • 111 Comments What the Fed did in details and charts. And, well, “Primary Credit” is starting to show up again.
Bank of England Explains Why Intervention Wasn’t Pivot to QE, But Effective Effort to Halt Death Spiral Triggered by Tax-Cut Panic in Gilt Market: Bond Purchases Near Zero this Week by Wolf Richter • Oct 6, 2022 • 73 Comments Underlying pension fund issues can now be dealt with in an orderly fashion.
Housing Bubble Woes: Mortgage Demand Plunges, Rates Near 7%, Spread Between Mortgage Rate & 10-Year Treasury Yield Blows Out Most since Dec. 2008 and 1986 by Wolf Richter • Oct 5, 2022 • 138 Comments But even these highest-since-2007 mortgage rates are still far below the highest-since-1981 inflation.
New Vehicle Sales Down 19% in Q3 v. Q3 2019, Due to Shortages: I Estimate the Piggybank of Unmet Demand for a Recession by Wolf Richter • Oct 5, 2022 • 85 Comments Very different from prior recessions when the industry was caught with huge inventories and large production runs.
Bank of England Bought No Bonds Today, after Buying only £22 Million on Monday, instead of £5 Billion per Day by Wolf Richter • Oct 4, 2022 • 107 Comments Carefully communicating this isn’t a Pivot to QE but a temporary “backstop” to calm a panic. And it calmed the panic with minimal purchases.
Layoffs, Quits, Job Openings, Hires: Slight Softening of Contorted Labor Market, Still Massive Churn & Job Hopping by Wolf Richter • Oct 4, 2022 • 47 Comments The Fed gets more rate-hike material. Only retail trade is back to normal.
Office REITs Massacred as the Future these Office Markets Were Built for Got Cancelled by Working-from-Home by Wolf Richter • Oct 4, 2022 • 80 Comments “Expect more distress from some owners as loan defaults and relinquishing of assets could increase going forward.”
