It's a case of economic policy run amuck. Real estate development can boost the economy, under the right conditions: lots of jobs and economic activity get generated when homes are built or refurbished. And there is the wealth effect when home prices rise. But when taken to extremes - as it is today and was in the previous economic cycle consumer spending gets squeezed out in order to pay mortgages and rent. It becomes an incredibly unproductive use of capital. Simply put, we have a surge in college-age prostitution and it's the Fed's fault. It gives new meaning to the term "perverse monetary policies"
July Was Warmest Month On Record NOAA Reports, Lists All "Signifiicant Climate Anomalies And Events"Submitted by Tyler Durden on 08/20/2015 18:58 -0500
While some, perhaps not California farmers, will disagree with NOAA's assessment of the world's atmospheric conditions, earlier today the National Oceanic and Atmospheric Administration declared that July was the warmest month ever recorded for the globe and was also the record warmest for global oceans, putting a full stop to a year that has been characterized by numerous perplexing atmospheric outliers around the globe but perhaps none other more so than NOAA's earlier assessment that the winter of 2015 was also the warmest on record despite the much discussed US winter, where for the second year in a row the economic slowdown was blamed on a colder than usual winter. Go figure: perhaps here too we need double seasonal adjustments.
But Not There Yet...
FOMC Minutes Leaked Early After Embargo Broken, Fed Warns Risk To GDP Forecast "Tilted To The Downside"Submitted by Tyler Durden on 08/19/2015 12:41 -0500
Seconds ago, someone accidentally (we hope) pulled a Janet Yellen as the following just came across the wires
FOMC MINUTES: MEMB 'GENERALLY AGREED' MORE INFO NEEDED TO HIKE
FOMC MINUTES: NO TIP TOWARDS SEPT LIFTOFF, DOESN'T RULE IT OUT
But the bottom line is that the Fed just admitted things are going from bad to worse: "The risks to the forecast for real GDP and inflation were seen as tilted to the downside." The question now is what comes first: QE4 or the first rate hike in nearly a decade.
The nation’s largest privately held company, Cargill, has agreed to purchase Norwegian-based EWOS, one of the world's largest suppliers of feed and nutrition for farmed fish. The $1.5 billion deal signals Cargill’s entry into salmon and trout markets and is the company’s second aquaculture deal in the past two months after it announced a $30 million shrimp feed facility project in Equador with Naturisa.
A look at next week's data in the somewhat larger context, and a look at interest rate differentials
To help remind readers of what happens when the entire world engages in wholesale currency war, here is a complete list of all the recent FX interventions, courtesy of Stone McCarthy.
In "historic step," Norway may be forced to tap into its $875 billion sovereign wealth fund to help make ends meet in the face of persistently low crude prices.
Here is an overview of next week's events and data placed in the larger context.
Coal powered electricity is currently by far the cheapest and one of the most reliable forms of electricity generation known to Man. To suggest that replacing this with intermittent wind and solar or carbon capture generation will somehow reduce American’s electricity bills is either delusional or plain stupid. Or is the intention to deliberately deceive?
The demise of the dollar has been greatly exaggerated. Here is how I see the near-term outlook.
Russia is resubmitting its claim of more than 460,000 square miles of the Arctic, including the North Pole, as its sovereign territory, saying it has enough evidence to convince the United Nations that its claim is valid. The Arctic, which is believed to contain as much as one-quarter of Earth’s undiscovered oil and gas, is part of a territorial dispute involving not only Russia but also Canada, Denmark, Norway and the United States. This is the second time Moscow has submitted a claim in the Arctic.
The quest for perfection is man’s unattainable goal. Man can never be perfect if we are to believe the English philosopher Thomas Hobbes. Man is man’s wolf and all of that.
The Central Planners who thought that buying shares to prop up the stock bubble was an excellent fix are about to find out the true meaning of toil and trouble.
How hard do you work compared to the rest of the world?