Chris comments on the Beige Book
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Thanks Bob UK will correct.
Best
Just checked Bob UK, and they are both different as they should be.
Thanks for your concern.
Ah, working for me now Al – must have been something going on in my browser cache.
Copper price fell about 5% today down to below 6,000 USD per tonne. So for oil to go up and copper to go down on the same day is kind of confusing for me.
I get the feeling that the oil rise is a short term bounce – shorts taking profit maybe – or maybe some devious manipulation going on in the background.
When I look at the markets these days – conventional stocks, metals, oil – I just think thagt the big boys let something go down so far and then they decide to buy in, ramp it up and sell it on to suckers who want to catch the wave. The big boys take their profit and then go looking for another low priced asset to pump and dump.
I agree with you completely, Bob UK!
Number one, the Fed did not specifically mention copper as a worry. #2, the Chinese overnight were facing significant sales of copper “collateral” as their own game of mirrors is under stress.
The problem of copper is supply. The production ha been increasing at 4-8% a year. There is no way the world absorb it
Since 2000
If what we think about all this is the million dollar question, then this forum and website generate more profits than I thought!
I still see the Fed raising interest rates a tad at some point to continue to gimmick that the US is doing alright, like I believe Doc and Cory said yesterday. I don’t see them raising the interest rates too much but maybe a quarter of a percent. They can’t raise it too much or else the debt will become unserviceable.
Remember when oil spiked the govt said it wasn’t inflationary, but when it falls they say it’s deflationary. Seems to me you can’t have it one way without the other.
I’m not worried about a few oil companies “blowing up” (going bankrupt), they are the ones the crashed the Main Street economy–compliments of Bush and his neocons. Gas prices spike just ahead of the reset of teaser rates on all those liars loans. Hard to care about that crowd after what they did to our economy at great profit for themselves across the last decade–while the nation suffered.
How ironic, Bush took the BIG BOW claiming home ownership was at an all time high under his presidency. A few months later (under his presidency) home foreclosures were at an all time time, followed by the mortgage-back securities debacle that required American taxpayer dollars to be shot in every direction buying back that crap from foreign countries, domestic states and local gov’ts along with private pension funds. God bless them all–greed had no bounds on either side of that trade.
Anyway, I’m still waiting for the Bush Dynasty to take the bow for the’ total package’ — His trickle down economics thing. But am also wondering when they’re going to take that victory parade through downtown Baghdad so they can: “Be greeted as liberator” — D. Chaney. No doubt they will be showered with rose petals and confetti.
But as it is, I’m just thankful my wallet isn’t getting raped every time I pull up to gas up–and am thinking tens of millions of Americans feel the same way.
Chris you always nail it.
I felt this was the point that was glassed over and missed at the last news conference by Janet Yellen.
Hearing “Leverage in the financial system in general is way down from the levels before the crisis, so it’s not a major concern that there are levered entities that would be badly effected by this.” “We will have to watch carefully.”
All one had to do was look at a weekly chart of the HYG and see that there was trouble brewing.
For Janet Yellen to say that they weren’t concerned made me wonder how much did they really know or how much they really didn’t know.
Sorry wrong chart.
Look at the weekly HYG.Stockcharts won’t let me post it.
Thanks John — what’s exasperating –and will no doubt continue adding to the volatility and confusion is that the Fed says one thing one minute, then lurches into a new theme the next. Today’s Beige Book is probably a more accurate reflection…trouble is, wanting to do a victory dance when QE “officially” ended and blow smoke up all our rear ends telling us how wonderful things are, the Fed created a bigger mess. If they were honest, they’d tell us to forget all their B.S. of the last few months, and that the can’t and won ‘t raise rates, and will focus on their ostensible inflation target. Until they go that far or some equivalent, a 2008-style implosion is an even greater threat than it is already.
The economy is manipulated so much so that there is no way to deflation except through a Black Swan event.
Think you put up the wrong audio folks – it is the same one as Chris’s earlier commentary.