The charts this week much like with last weeks Morgan highlights speak for themselves.
Summation of last weeks key comments:
"The real risk to the market is not the end of QE buying, but when the Fed finally
acknowledges that rate hikes are in sight"
Weak Wage Growth Shows FED Failing To Maintain It's Mandates
BOA/ML Said That Data For Monitoring Impact May Be Shit:
Wage growth disappointed for a second consecutive month, inching up only 0.1% mom in October after no gain in September. Expectations were for a trend-like 0.2% increase. This left annual wage growth at 2.0% yoy. Despite the significant improvement in the unemployment rate, wage growth has shown no signs of acceleration. There are a few possible explanations: 1) the standard U3 unemployment rate is not sufficient and we should monitor broader measures, including discouraged and workers marginally attached to the labor force. These broader indicators reveal greater slack. 2) Pent-up wage deflation: since employers did not cut wages during the recession, they will not rise as quickly during the expansion. This suggests a greater lag between reaching full employment and wage growth. 3) Sample issues: we aren’t controlling for changes in the quality of job growth when measuring average hourly earnings
Fifth District Unemployment Looking Worse For Wear
Money Market Rates
Core Inflation Outlook
Goldman's Jan Hatzius Said In Friday's "Economics Analyst" Note:
Exhibit 6 shows a few of the key category-level models. To forecast year-on-year inflation beyond September, we combine the model’s predictions for the next year with already-reported data for previous months. The model projects a softening both in most core goods categories, especially apparel and new and used vehicles, and in transportation services, the latter driven by lower energy costs. In contrast, the model expects a modest pickup in shelter prices and the residual services category.
Europe Remains F*@ked
Huw Pill Said In Thursday's Note:
The main data releases this week are Q2 GDP data for the Euro area, France, Germany and Italy. We now expect Euro area GDP to have grown by just 0.1%qoq. National GDP growth numbers will also likely be weak, with Germany GDP growing by just 0.2% qoq. In the UK, we expect the unemployment rate to fall further, from 6.0% to 5.9%. Moreover, the Bank of England will publish its November Inflation Report. We estimate that the MPC would only need to revise down its outlook for GDP growth next year by a modest amount – [0.2 - 0.3%] – to implicitly ‘endorse’ financial markets’ move to a lower path for expected Bank Rate.
If there's one thing to walk-away with right now it would be that managed economies fail, central planners are too disconnected from the general public to comprehend policy impacts even if those in power have MBA case-studies, magnum cum laudes and other bullshit designations that do nothing to build trust or confidence in the systems these psychopathic liars manage and pretend to control. Inflation is shit, wages growth is garbage, and globally we're sliding into a "new normal" of "less is more". Central Bankers control the indeces, standards of living remain stagnant and the ability of our monetary system to lift souls out of poverty has reversed and continues to push people into poverty. Soveriegn Treasuries bailout the Big Swinging Dicks and supress the public who funded those Treasuries.
We're sold one story about the benefits of central planned economies...
But in the longrun, the story ends with....
