I caught up with Financial Sector veteran Roger Brown to discuss the rise and fall of Australian property, and the agencies responsible for the mess we are in.
Roger sheets much of the blame on APRA, plus poor policy from the RBA and Treasury.
The net effect is the disenfranchisement of younger households, and the creation of spurious “wealth”.
The truth is, many are going to find the next few years very tough, and there are risks to financial stability.
Roger is on Twitter as @bankcustomers
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
What A Fine Pickle We Are In: With Roger Brown [Podcast]
I caught up with Financial Sector veteran Roger Brown to discuss the rise and fall of Australian property, and the agencies responsible for the mess we are in.
Roger sheets much of the blame on APRA, plus poor policy from the RBA and Treasury. The net effect is the disenfranchisement of younger households, and the creation of spurious “wealth”.
The truth is, many are going to find the next few years very tough, and there are risks to financial stability.
Roger is on Twitter as @bankcustomers
Go to the Walk The World Universe at https://walktheworld.com.au/
In this week’s market review, we examine the curious relationship between updated economic data, and the markets. And I conclude, Up is Down.
We start with the US markets, look across Europe and Asia, and end in Australia, as well as covering the latest in Oil and Metals, and a quick look at Crypto.
It appears equity traders have apparently gotten bored waiting for higher interest rates to make their presence known in the economy despite increasingly thorny warnings from the Federal Reserve, and the shockingly frank revelation from the Bank of England on Thursday that Recession is coming.
The focus rather has been on celebrating buoyant earnings and economic reports. The S&P 500’s performance over the last five days was virtually flat compared with the previous two weeks.
The central bank is “nowhere near” being almost done cracking down on inflation, San Francisco’s Mary Daly said. Cleveland’s Loretta Mester is looking for persuasive evidence price pressures are moderating and Chicago’s Charles Evans said policy makers were a few reports away from seeing the kind of data that would make them think they’re on the right track.
“The market is basically saying to the Fed, ‘You’re not going to have to go as far as you think you do,’ and also, ‘You might have to start reversing course much sooner than you think you have to,’” Katie Nixon, chief investment officer at Northern Trust Wealth Management, said “Is it sustainable in the face of a Fed that appears to be hell-bent on not stopping not stopping?”
Go to the Walk The World Universe at https://walktheworld.com.au/
In this week’s market review, we examine the curious relationship between updated economic data, and the markets. And I conclude, Up is Down.
We start with the US markets, look across Europe and Asia, and end in Australia, as well as covering the latest in Oil and Metals, and a quick look at Crypto.
It appears equity traders have apparently gotten bored waiting for higher interest rates to make their presence known in the economy despite increasingly thorny warnings from the Federal Reserve, and the shockingly frank revelation from the Bank of England on Thursday that Recession is coming.
The focus rather has been on celebrating buoyant earnings and economic reports. The S&P 500’s performance over the last five days was virtually flat compared with the previous two weeks.
The central bank is “nowhere near” being almost done cracking down on inflation, San Francisco’s Mary Daly said. Cleveland’s Loretta Mester is looking for persuasive evidence price pressures are moderating and Chicago’s Charles Evans said policy makers were a few reports away from seeing the kind of data that would make them think they’re on the right track. “The market is basically saying to the Fed, ‘You’re not going to have to go as far as you think you do,’ and also, ‘You might have to start reversing course much sooner than you think you have to,’” Katie Nixon, chief investment officer at Northern Trust Wealth Management, said “Is it sustainable in the face of a Fed that appears to be hell-bent on not stopping not stopping?”
Go to the Walk The World Universe at https://walktheworld.com.au/
The Bank of England is the latest central bank to raise interest rates by at least 50 basis points in one go this year as it unleashed its biggest interest-rate hike in 27 years and warned the UK is heading for more than a year of recession under the weight of soaring inflation.
The half-point increase to 1.75% was backed by eight of the bank’s nine policy makers, who also kept up a pledge to act forcefully again in the future if needed, potentially putting similar hikes on the table for coming meetings.
They sheeted much of the inflation to ultra-high energy costs, following on from gas prices which have been driven higher by the Ukraine situation. Inflationary pressures have “intensified significantly,” the BOE said. “The latest rise in gas prices has led to another significant deterioration in the outlook for activity.”
The BOE lifted its forecast for the peak of inflation to 13.3% in October amid that surge in gas prices, and warned that price gains will remain elevated throughout 2023. That will sharpen a cost-of-living crisis that will see real disposable incomes fall more than at any time in around 60 years. Even after billions of pounds of government support for struggling households, families are set to be around 5% worse off by the end of 2023 with incomes falling both this year and next.
Go to the Walk The World Universe at https://walktheworld.com.au/
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My latest Friday afternoon chat with Journalist Tarric Brooker about economics, monetary police and social trends. His charts are available to view at https://avidcom.substack.com/p/charts-that-matter-5th-august-2022 Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
Raising Rates - Into A Recession: With Tarric Brooker [Podcast]
New Zealand economists are firming on the Reserve Bank lifting the cash rate to 4% – considerably higher than recently expected, and the latest data on wages and employment, they say provide more of a platform to achieve this target. So more pain for many, including recent mortgage holders. Go to the Walk The World Universe at https://walktheworld.com.au/
