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And in the end, after Draghi's, there is the unconditional surrender of Powell …
Bag, Wall Street flies with Powell's dove wings, DJ + 2.50% https://t.co/Isf9bhWtiD @yahoo_italia
– Andrea Mazzalai (@icebergfinanza) November 29, 2018
After months and months of ostentatious security, one of the most ridiculous categories of human beings on the planet, central bankers admit that things are not going at all.
At a meeting with the elite of the economy and finance at the New York Economic Club, Jerome Powell said that interest rates are now close to the level considered neutral, that is to say that they have no stimulating effect. growth brake.
The head of US monetary policy has defended the previous rises (perhaps in response to the many criticisms made by US President Donald Trump), warning that keeping rates too low for too long would be at risk. But he also added that there was no default route for future increases, which would depend on the data.
Our Sunday Falcon realized that the real estate market was starting to collapse, a dynamic that we will talk about earlier, but take Italy as a systemic risk to hide the real reason for the end of the recovery cycle. rate …
Powell, Italy, is a source of systemic risk https://t.co/6Z5LjA4wtr pic.twitter.com/aDZkOiDFf9
– MilanoFinanza (@MilanoFinanza) November 28, 2018
The reality is that our hero has received a call from Donald Trump. Indeed, over the past few months, he has received more than one!
Sorry, this hen considered a hawk no later than a few weeks ago, circulated saying rates were far from the neutral level, as America still had long way to reach the neutral rate level. Now instead …
"About three years ago, the FOMC estimated that the interests of households and businesses, savers and borrowers were no longer serving extremely low interest rates, so we began to gradually increase our benchmark rate to more normal levels. healthy economy: interest rates remain low compared to historical norms and remain just below the wide range of estimates of the level that would be neutral for the economy, that is to say rates that can neither accelerate nor slow growth My FOMC colleagues and I, as well as many private sector economists, expect steady growth, low unemployment, and inflation close to 2%. "
Congratulations kids, change economists!
The keywords were " just below the neutral "Words capable of arousing psychopaths on Wall Street!
Lovey-Dovey's interpretation of Powell's speech sends shares Flyinghttps: //t.co/9e0WPEW495
Jerome Powell said that interest rates are "just below neutral". The market is in progress. pic.twitter.com/QDW5jKzzHN
– Mike Mish Shedlock (@MishGEA) November 28, 2018
The great Mike Shedlock recalls an exceptional historical anecdote, through the words of Powell …
For fans of the New York club's economic quiz, I will note that the second presentation to this club by a Federal Reserve official concerned this subject. The date was March 18, 1929. A few weeks earlier, the Fed had issued a statement of public concern about speculation in the stock market and had provided disturbing indications about bank financing such speculation. William Harding, former Fed chairman, then chairman of the Boston Federal Reserve, defended the Fed's actions in his speech. He argued that although the Fed did not act as the arbiter of the fair price of the financial market, it had the primary responsibility to protect the ability of the banking system to meet the credit needs of the financial markets. households and businesses. During the meeting, critics argued that public statements about inflated stock prices were "full of danger"; that the country's banks were so well managed that they did not have to "handle public warnings"; and, more generally, that the Fed was "out of his field". Of course, Harding spoke only a few months before the collapse of the 1929 stock market, which marked the beginning of the Great Depression.
Powell's implicit message is that the Fed will not let another incident happen again. The implicit message, writes Mikem, is that not only does the Fed have everything under control, but it also exercises "eternal vigilance" to stay that way.
Believe me, history teaches that this category of ridiculous men, who has never mastered anything, is extremely misleading, as history suggests, the bubbles broke out because of the central bankers and the Federal Reserve. The only thing they master is at most the level of dementia in their statements, they are administered in small doses.
The feeling is that to mitigate the G20's total failure to be held in Buenos Aires this week, the Fed has pushed the US markets upward to ease Monday's collapse. The commercial war continues. Oil is atrocious!
In fact…
According to data published by the Ministry of Commerce in October 2018, the US trade balance showed a deficit of 77.2 billion, up 1.3% ($ 0.9 billion), against 76.3 billion last month. The figure was over $ 77 billion according to badysts' estimates …
| International merchandise trade | |||||||||||||||||||||||||||
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- Imports rose 0.1% in October to $ 217.764 billion from $ 217.554 billion in September.
- Exports decreased 0.6%
It's a Trump's new US deficit record 14 billion more since the beginning of the trade war, the war continues.
Also today, Mario Draghi will speak, another task that has not yet completed the only task that the ECB must perform, namely price stability.
The US Department of Commerce has announced that the sale of new homes fell by 8.9% to a seasonally adjusted volume of 544,000 units in October, its lowest level since March 2016. Economists polled by Reuters forecast a 3.7% increase in the sale of new housing at a rate of 575,000 units in October.
The dynamics that you can see in the graph above is clear, since the beginning of November of last year, there are 11 consecutive months of descent, while the rates are at the highest for years. Such a low level of sales has not been seen since the beginning of 2016!
Explain what is the purpose of an badyst if the average calls for an increase of 4% and a fall of 9%, what on earth are these gentlemen badyzing in addition to their conflicts of interest?
This is the situation …
NORTHEAST 18.5% down per month and 46.3% !!!!!!!!!!!!!!!! compared to a year ago
MIDWEST down 22.1% year-on-year and 16.7% year-on-year
SOUTH fell 7.7% over one month and 11.6% from the previous year
WEST down 3.2% over one month and 1.3% from last year
Stay tuned, we are only in the beginning, the QE FOUR is around the corner!
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