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The Regressive Fed

Via Kessler Companies,

In a move that defines the word 'irony' better than the dictionary does, the Federal Reserve raised rates just five hours after their own Industrial Production series was released showing an almost certain entry into a US recession (see chart below).

The High Yield Bond Market Is Blowing Out Again

This was not supposed to happen. Since The Fed raised rates the temporary (one day) stability in high-yield bonds has been obliterated. Across all sectors, HY bonds are being sold; the HY bond ETF is tumbling back to recent lows; and Energy spreads have surged to record highs. In a nutshell, it's not over yet!

Everything is being sold...

 

As HYG breaks key support...

 

And Energy spreads spike to recod highs...

 

As Energy Fwd P/Es begin to fall back to reality...

 

 

For Caterpillar, The Depression Just Turned Three: CAT Hasn't Had A Sales Increase In 36 Consecutive Months

Earlier today Caterpillar reported its latest monthly retail sales statistics, and the numbers continue their deplorable trend: Asia/Pacific (mostly China) was down -17%,EAME dropping -5%, Latin America down -37%, the US down -5%, and global sales continuing their double digit decline for one more month down -11% in November.

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