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The current Fed rate raising cycle began on December 15, 2015. And while we all hear the wild claims about what will “obviously” be the different market reactions to the rate increase, let’s stick to the facts. The knee-jerk reaction to an interest rate increase is to sell gold. According to the consensus, rising rates = falling gold prices. But that theory is total crap.
By Wolf Richter of WolfStreet
Even the Fed put commercial real estate on its financial-stability worry list.
No, the crane counters were not wrong. In 2017, the ongoing apartment building-boom in the US will set a new record: 346,000 new rental apartments in buildings with 50+ units are expected to hit the market.
Authored by David Stockman via Daily Reckoning,
On July 10, 2007 former Citigroup CEO Chuck Prince famously said what might be termed the “speculator’s creed” for the current era of Bubble Finance. Prince was then canned within four months but as of that day his minions were still slamming the”buy” key good and hard:
“When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing,” he said in an interview with the FT in Japan.
Few have dedicated as much time and effort into explaining the behavioral aspects of trading in a time of central planning (or "metastability") as Deutsche Bank's whimsical derivatives-philosopher, Aleksandar Kocic.
Authored by Mike Shedlock via MishTalk.com,
Inquiring minds may be wondering what economic cartoons from 1912 looked like. I can help.
It seems silly now, but in 1912 some nuts thought the Fed would become an all-powerful Wall Street/Bank/Gov't cartel. pic.twitter.com/rFjCf4KElx
— Rudolf E. Havenstein (@RudyHavenstein) February 22, 2014