Business

Students at Temple University in Philadelphia, or perhaps their parents, are getting a great lesson today on the real life economic consequences of liberal political policies run amok.  Courtesy of Philly's new 1.5 cent per ounce 'soda tax', Temple has been forced to hike it's 2017-2018 boarding costs by $400,000, or roughly 4.8%.  Per Philly.com, Temple's CFO said they will roll back the planned $400,000 meal plan hike if the soda tax is repealed.

By Chris at www.CapitalistExploits.at

Market dislocations occur when financial markets, operating under stressful conditions, experience large widespread asset mispricing.

Welcome to this week’s edition of “World Out Of Whack” where every Wednesday we take time out of our day to laugh, poke fun at and present to you absurdity in global financial markets in all its glorious insanity.

Via ConvergEx's Nicholas Colas,

It’s great when a plan comes together. 

 

The recipe for not just today’s rally but the whole move since Election Day is easy.  Take one part new Administration with expansive plans to boost the US economy.  Add in 2 measures of a Federal Reserve confident enough in existing macro growth to boost interest rates.  Add a dollop of money flows.

 

Someone with over 53 years on Wall Street sent me this article from Lex of the Financial Times...

his article is full of errors and misconceptions. I clarified most of them last week in "Why the Wineklvoss Bitcoin ETF Was Rejected and How to Create a Regulated Vehicle That Passes Muster". In said article I demonstrated that China doesn't have the majority of trade volume. That's just WRONG!

While it was generally a quiet day in the market, an unexpected tension emerged today: first central banker incubator Goldman Sachs, and then RBC both made the case that Janet Yellen has not only failed to communicate what yesterday's rate hike means, but that the Fed has effectively lose control of the market, by unleashing just the opposite reaction of what the Fed had intended: in fact, as Goldman explained, the response to the market was the equivalent of "almost one full cut in the federal funds rate." In other words, instead of hiking, the market interpreted the Fed's action as a rate