Fisher reports from inside the FOMC: it’s getting more hawkish and will hike interest rates sooner than expected. Markets are in denial. Not going to be pretty.
Investors’ forecasts of rate hikes are well below those by Fed governors. “And it wouldn’t be good” if the gap gets closed “with great rapidity,” frets Fed Governor Lacker.
by Wolf Richter • • Comments Off on Yellen Warns Investors
Yellen pokes at bubbles in momentum stocks, leveraged loans, threatens to end ZIRP sooner, more rapidly “than currently envisioned.” Fasten your seatbelts.
Buyers from China are the most prolific, spending 72% more than a year ago! On expensive homes. They benefit from the devaluation of the dollar – according to the NAR – and are desperate to get their money out of China.
Many Americans spend every dime they make, and usually way beyond what they make. It’s not because they have confidence in the economy. They don’t! The gap in consumer confidence between these folks and those with higher incomes is at an all-time record!
by Wolf Richter • • Comments Off on ‘It’s Like We Have Developed An Inability To Even See Risks’
My convo with a wealth manager at a megabank who’s been at it for 30 years, has seen three crashes while on the job, but unlike others in finance, hasn’t re-forgotten the lessons for the third time.
by Wolf Richter • • Comments Off on UBS: The Secret Reason The Fed Is ‘Tolerating’ Bubbles
“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.”
