Business

The non-linearity of inflation psychology and the present danger of stagflation

Submitted by John Butler at GoldMoney Inc. The full report can be accessed here. 

Introduction

Submitted by David Stockman via Contra Corner blog,

That Hillary Clinton has - unaccountably - stood by her man for 40 years is her particular foible. But now she wants 320 million Americans to stand by him, too, by electing her President so she can make Bill the nation’s economic czar:

Wall Street bonuses could decline by as much as 20 percent this year according to estimates from compensation consultant Johnson Associates Inc.

While bonuses are predicted to fall across the board, the firm believes that fixed income trading and investment bank underwriting will be hardest hit, estimating that bonuses for those roles will fall as much as 15 percent to 20 percent from last year.

Call it criminal deja vu, all over again.

Back in February 2014, just hours after Morgan Stanley shocked the market with an upgrade of Tesla which had a price target over 100% higher than the existing price, we reported that Morgan Stanley stunned the market when it also announced it was the underwriter on a $1.6 billion convertible bond offering for Tesla.

Another roller-coaster day... "you're a crook, and a cheat, and a swindler..."

Today's melt-ups (pre-FOMC Minutes) were all thanks to broken markets

But after FOMC, things went south in everything (except the Dollar)...