When would banks be forced to reprice deposits to reflect 4-5% interest rates offered by money market funds?
Nobody at banks has any idea about interest rates sensitivity of their deposits and people naively assume that higher rates are uniformly good for banks.Not in the inverted yield curve when rates are heading higher! ...
I always felt throughout the European fiscal crisis of 2009-2012 that Brits and Americans ridiculing Continental Europe displayed arrogance and their turn was coming.
One of the advantages of the European single currency was that it at least partially ensured mutual fiscal oversight!While the oversight was loosely encouraged and never really enforced, other G7 countries (the US, Canada, the UK and Japan) never had any sense of fiscal discipline! Now, the fiscal turmoil in the UK should give a ...
German consumer buying habits continue to surprise:
“the revenge travel” – post Covid itch to hit the road recently manifested itself in German car rental companies pushing rates on rentals way higher, denying the pessimism that the skinflint Germans would not pay up for experience. When a cold dark winter prompted by a lack of Russian-supplied natgas, would hit Germany, I could ...
Interesting how nowadays, fundamental reports deviate from the price action.
Everyone talks about supply shortages across almost all commodities (including, crude oil and natgas in Europe), yet Commodities are way off the April highs. Today the soybean report also demonstrated really tight inventory, and Soybeans spot prices have barely moved. Something gotta give…. ...
I always liked and respected Rick Rieder – the CIO of Blackrock.
He was recently saying that for the first time in a long while he likes Treasuries better than Equities.Totally agree!Nominal rates would stay low almost no matter inflation – many reasons for that. When major asset allocators like Rick would be buying more Treasuries, they would be effectively selling large Technology stocks which still dominate ...
The media portrays the unfolding Railroad strike as “stoking Inflation at the worst possible time”.
Well, the ever-opportunistic railroad union leaders would deliberately pick the most vulnerable time to strike the highest negotiation power! See the chart below how Railroads (illustrated by the Union Pacific) stocks closely match the inflation – i.e. Railroads do well when inflation is high, and that is exactly when rail employees have the highest bargaining ...