St Louis Fed

St Louis Fed
Phoenix Capital Research's picture

The Market is Rapidly Running Out of Props…





Put simply: the market is quickly running out of props. Eventually we’re going to get a correction. But with so little buying power in the markets that could correction would very easily become a Crash.

 
Tyler Durden's picture

The Economist "Buries" Gold





The Economist is a quintessential establishment publication. Keynesian shibboleths about “market failure” and the need to prevent it, as well as the alleged need for governments to provide “public goods” and to steer the economy in directions desired by the ruling elite with a variety of taxation and spending schemes as well as monetary interventionism, are dripping from its pages in generous dollops.  The magazine has one of the very best records as a contrary indicator whenever it comments on markets. While gold hasn’t yet made it to the front page, but the Economist has sacrificed some ink in order to declare it “dead” (or rather, “buried”).

 
Tyler Durden's picture

"$12 By '20": Democrats Seek 70% Increase In Minimum Wage





Democrats are moving on a “$12 by ‘20” pitch, whereby they hope to have the minimum wage hiked to $12 within the next five years. The rationale is simple: restore the purchasing power Americans once had and you will restore robust economic growth. Ok, maybe it's not that simple, because as Republicans note, raising the pay floor by nearly 70% may well cost America jobs, thus making things worse for the very people the wage hike was meant to help.

 
Tyler Durden's picture

It's Official: Being Poor Makes People Unhappy





Not long ago we noted that contrary to the old adage, money can indeed buy happiness. Given this, it stands to reason that the converse is likely true as well. That is, no money probably contributes to unhappiness. Sure enough...

 
Tyler Durden's picture

Meet IBR, The Student Loan Bubble's Dirty Secret





Some borrowers are allowed to remain in a perpetual state of default even as they avoid actual payment default and in the end, their loans are legally discharged at the expense of the US taxpayer. Meanwhile, the payments they aren't making appear to be classified by the Department of Education as both "in repayment" and "current." 

 
Tyler Durden's picture

It's Not Just The Students Who Are Broke: LSU Draws Up Bankruptcy Plan





"Louisiana faces a $1.6 billion budget shortfall in the coming fiscal year, a result of both plunging oil-tax revenue and the state’s failure to enact adequate tax increases or spending cuts after the economic downturn in 2009. The latest plans would mean an 82 percent cut to the state’s public colleges and universities."

 
Tyler Durden's picture

From Delinquent To 'Seriously' Delinquent: Another Worrying Trend For Student Debt Revealed





Recently, we noted that once America’s best and brightest come out of deferment and forbearance, one in three quickly fall 30 days or more behind on their payments. Now we learn that not only are delinquency rates on the rise, so too apparently, is the percentage of delinquent borrowers who have simply stopped making payments, late or not.

 
Tyler Durden's picture

Is The Student Debt Bubble About To Witness Its 2007 Moment?





Moody's puts $3 billion in student debt-backed ABS on default watch leading us to wonder when 30% delinquency rates in a market where nearly $1.3 trillion in credit has been extended will finally result in the bursting of what is America's most spectacular debt bubble.

 
Tyler Durden's picture

With Futures On The Verge Of A Major Breakout, Greece Drags Them Back Down; German 10Y Under 0.1%





Just as the S&P appeared set to blast off to a forward GAAP PE > 21.0x, here comes Greece and drags it back down to a far more somber 20.0x. The catalyst this time is an FT article according to which officials of now openly insolvent Greece have made an informal approach to the International Monetary Fund to delay repayments of loans to the international lender, but were told that no rescheduling was possible.  The result if a drop in not only US equity futures which are down 8 points at last check, but also yields across the board with the German 10Y Bund now just single basis points above 0.00% (the German 9Y is now < 0), on its way to -0.20% at which point it will lead to a very awkward "crossing the streams" moment for the ECB.

 
Tyler Durden's picture

"Staggering" Student Loan Defaults On Deck: 27% Of Students Are A Month Behind On Their Payments





A new St. Louis Fed study finds that the delinquency rate for student borrowers in repayment is 27.3%, meaning nearly one in three of the Americans laboring under a debt load that has now swelled to $1.3 trillion are more than a month behind on their payments. Ackman says there's "no way they are going to pay it back." We can hear the "cancel the debt" cries now. 

 
Tyler Durden's picture

Chart Of The Day: Is The US Already In A Recession?





While everyone is focusing on tomorrow's Nonfarm Payrolls number, the far more important number is today's Factory Orders data (because it is far less fuged, adjusted and generally doctored to preserve faith in a contracting economy). Because according to America's manufacturing output, not only is the country already in a recession but it is getting worse with every passing day.

 
Tyler Durden's picture

Some Folks At The Fed Are Lost - No Juice To The Macros, Part 1





Does it really take purportedly intelligent people six years to see that the macros are not responding? Better still, isn’t it time for the Fed to explain the exact channel by which its interest rate pegging and forward guidance is supposed to be transmitted to the main street economy? After all, if these channels are blocked or ineffective - then its flood of liquidity never leaves the canyons of Wall Street. In that event, the central bank actually functions as a financial doomsday machine, inflating the next financial bubble until it bursts. Then, apparently, its job is to rinse and repeat.

 
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