Low Unemployment with Falling Capacity Utilization… Not a Good Sign for Fed Liftoff
Why the Fed should delay its long-anticipated “liftoff”.
Read more...Category Archives: Investment outlook
Nomi Prins: Mexico, Federal Reserve Policy and Danger Ahead for Emerging Markets
Mexico’s problems could again ripple through Latin America where eroding confidence, volatility, and US dollar strength are already hurting economies and markets.
Read more...Wolf Richter: Corporate Revenue Recession Spreads past Dollar, Energy
Now that 495 of the S&P 500 companies have reported second quarter earnings, something has become abundantly clear: 2015 is going to be a nasty year for corporate revenues.
Read more...Real Household Net Worth: Look Out Below?
Even with the wild end-of-day rally yesterday, Steve Roth describes how absent a strong continuation of the snapback, real household net worth is likely to show a year-to-year fall by the end of September. And that’s not a good sign at all.
Read more...Wolf Richter: Americans’ Economic Outlook Plunges
The latest poll of Americans’ economic outlook shows most expect things to get worse…and the survey was before the market rout started last Friday.
Read more...Michael Hudson: Smoke and Mirrors of Corporate Buybacks Behind the Market Crash
Hudson clearly differentiates what is happening in the Chinese versus the US markets, with emphasis on the role of corporate buybacks here.
Read more...Wolf Richter: It Starts – Broad Retaliation Against China in Currency War
Struggling economies that compete with China are going to protect their exports against Chinese encroachment via currency depreciation.
Read more...Michael Pettis: Do Markets Determine the Value of the RMB?
A thorough discussion of the background and implications of the so-far modest devaluation of the RMB.
Read more...The Decline in Market Liquidity
While the Fed isn’t worried about the fall in market liquidity, experts argue that if investors make abrupt changes in their portfolios, the lack of liquidity could produce a crisis.
Read more...China’s Stock Market Collapse
Those who are looking only at Greece and the crazy behaviour of the European Union may well be looking in the wrong direction to identify the next big crisis as it comes.
Read more...China’s Stock Market Falling Off a Cliff: Why, and Why Care?
What explains the turmoil in Chinese stock markets, and what does it mean for the rest of the world?
Read more...Chovanec: China Destroyed Its Stock Market
China apparently did not get the memo about not letting stock market leverage get out of hand.
Read more...Chinese Stock Market Rout Continues; Trading Halted in Over Half of Listed Stocks
The Chinese stock market meltdown is accelerating despite government intervention and is blowing back to commodities markets, including copper and oil, which are trading down based on concern that the stock market plunge is a harbinger of even more economic weakness. And the decline may represent the beginning of the end of the faith in China’s command and control economy.
Read more...Ilargi: QE Breeds Instability
Why both Keynes and Minsky regarded low interest rates as poor policy.
Read more...Wolf Richter: Get Used to Selloffs, Central Bankers Say as They Fret about the Terrifying Moment When Liquidity Evaporates
Investors act as if they have a right to liquidity. The authorities are trying to get them used to the new normal of higher spreads and risks.
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