It appears that the citizenry of Venezuela - shining example of socialist utopian endgames - are too busy slaughtering black stallions for food, lining up for toilet paper, and dying from lack of medicines to go out and buy cars (even at 0% rates for 10years?)...
“The truth is, yes, we can find pockets of things that are slightly less correlated. But the question is when this kind of moving-in-tandem will be very painful, when things move in the other direction.”
Infamous rules-based economist John Taylor attended the first monetary-policy conference in Jackson Hole in 1982, and he may be the only person to attend both the 1st and the this year's 35th. With Fed policy the easiest (relative to economic fundamentals) every in history, Taylor has one wish for an outcome... "less weird policy"
With all eyes focused on the collapse in equity risk over the last few months, it seems Treasuries have been ignored. This week has seen intraday trading ranges for 10Y Treasury yields crash to 2016 lows. The last time the volatility was this compressed was early June, which pre-empted a major surge in risk, slide in stocks, and drop in rates...
At long last, the presidential race between Trump and Hillary has devolved to its to its lowest common denominator: mutual accusations of racism, paranoia, neonazism, conspiracy theories, and of course the Ku Klux Klan.
“There are a lot of things that we thought we knew that haven’t turned out quite as we expected,” said Eric Rosengren, president of the Federal Reserve Bank of Boston. “The economy and financial markets are not as stable as we previously assumed.”
"My frustration is, the list price is $608. There is a system. I laid out that there are four or five hands that the product touches, and companies that it goes through before it ever gets to that patient at the counter. Everyone should be frustrated. I'm hoping that this is an inflection point for this country. Our healthcare is in a crisis, it's no different than the mortgage financial crisis back in 2007. This bubble is going to burst."
According to the latest Fitch auto subprime report, things in the auto subprime space are progressively deteriorating, with subprime 60+ day delinquencies rising 13% month-over-month (MOM) in July to 4.59%, and were 17% higher versus a year earlier. Subprime ABS annualized net losses (ANL) hit 7.39% in July rising 17% MOM, and were 28% higher year-over-year (YOY).
The title of this year’s Jackson Hole meeting – “Designing Resilient Monetary Policy Frameworks for the Future” – is a telling one. It is actually a call to a specific goal, rather than the typical generic one. You get the feeling that the Fed has something on its mind... Translation: Fed projections have been wrong, and the central bank doesn’t know how to make them any better in the future.
What we do know is that the targets of the attack were supporters of a political party that threaten Erdogan’s dreams of totalitarianism. We also know ISIS has not claimed responsibility for the attack, nor has Erdogan provided any evidence they were responsible, except to reiterate their alleged responsibility over and over. Don’t be surprised, therefore, if this attack is used as a further excuse to expand military operations against ISIS or some other group that Erdogan considers terrorists - or as a further move to target the Kurdish movement in Turkey and Syria. Oh wait, that literally just happened.
A U.S. destroyer fired three warning shots after an Iranian fast-attack craft approached and circled two U.S. Navy ships and a Kuwaiti vessel in the northern Gulf on Wednesday. CNN reports that the U.S. ship fired the shots into the water after the Iranian ship did not leave after a brief radio conversation.
Having short-squeezed crude oil prices higher on the back of a hope-filled statement, the Saudi energy minister just dropped another tape-bomb, warning that "no discussions of substance" have taken place on OPEC production levels, adding that he "does not believe any significant intervention in market is necessary."
A firm cannot just willy-nilly raise their prices without a competing firm leaping in to give consumers what they want at a lower price. As it turns out, Mylan has a great friend who keeps would-be competitors out of the market, or at least makes it so difficult for them that they eventually go out of business. That friend is the FDA.