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On a Percentage Basis This Rate Hike is a Big Deal (Video)

On a Percentage Basis This Rate Hike is a Big Deal (Video)

By EconMatters

 

It is a misnomer to think of the rate hike in terms of only being 25 basis points; on a percentage basis of the current effective Fed Funds Rate is what matters, and why this rate hike will have a meaningful impact on cross asset fund flows. Back to Back Rate Hikes for the first time since 2006.

https://www.youtube.com/watch?v=cUCLqu403Fs

Mario Draghi Explains Why 'Buying Corporate Bonds As Well' Will Work This Time - ECB Press Conference Live Feed

With rates left unchanged - deep in NIRP-land - amid an increasingly fragile banking system (see Italian bank stocks), we expect ECB chief Mario Draghi to reassure an anxious public how well QE is working (despite weak growth and tumbling PMIs), how great negative rates are for stimulating 'something' despite inflation's drift lower, and how his about-to-be-launched corporate bond buying bonanza will really solve the problems of the world (by enabling firms to lever up even more and buyback more stock?).

Started Early:

ADP Employment "Moderates" As Manufacturing Jobs Fall Again

ADP Employment "Moderates" As Manufacturing Jobs Fall Again

Printing a perfectly as-expected 173k rise in jobs for May, ADP Employment change offers hope for tomorrow's payrolls to give The Fed the go-ahead for a rate-hike. This is still the second lowest print since last September as manufacturing (and goods-producing) jobs fell once again.

A little hope for tomorrow...

But note that today's ADP report does not include the Verizon strike data which means that the 173k ADP print is likely higher than what tomorrow's payrolls print will be (by around 25-35k)

Ignoring This "Smart Money" Indicator Could Cost You

Ignoring This "Smart Money" Indicator Could Cost You

The financial media want you to believe that stocks have been doing great.

 

However, stocks have gone nowhere since the end of March. If you want to include the collapse at the beginning of the year as well as the massive short-covering rally, you could argue stocks have gone nowhere since December 2015.

 

 

The whole rally feels “suspect” to say the least.

 

If this is the start of another bull market, why have financial institutions been DUMPING stocks for 17 weeks straight?

 

 

The IMF is the Source of Inaccurate Figures on Zimbabwe’s Hyperinflation

The IMF is the Source of Inaccurate Figures on Zimbabwe’s Hyperinflation

Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke.

 

Most press reports about Zimbabwe’s fantastic hyperinflation are off the mark – way off the mark. Even our most trusted news sources fail to get the facts right. This confirms the “95 Percent Rule”: 95 percent of what you read in the financial press is either wrong or irrelevant.

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