Confounded Interest – Anthony B. Sanders
Financial Markets And Real Estate
The University of Michigan consumer survery is out and the results are startling.
Under Biden/Harris, buying conditions are far worse than under Trump/Pence.
In fact, buying conditions were extremely favorable (above 100) under Trump and dismal under Harris. Particularly for housing (where higher than normal mortgage rates and high housing prices made the “American Dream” the American Scream.
The US has fallen into a Ring of Fire under Biden/Harris horrid economic policiies.
But Biden/Harris had help from their deep state partner, The Federal Reserve.
The purchasung power of the US dollar has fallen by a whopping -20% under Biden/Harris. No wonder Harris is afraid to talk to reporters about her plans.
The children in Congress went on a spending spree as a result of COVID resulting in record inflation.
The deep state’s financing arm, The Federal Reserve, certainly helped create inflation by ramping up M2 Money supply around Covid.
Of course, children in Congress and Harris/Walz will use ANY excuse to tax and spend (and borrow/spend). The most recent inflation report had CPI growng at 2.5% YoY resulting in a further decline of purchasing power of the US dollar of -2.5% YoY.
Harris/Walz fully intend to keep shoveling TRILLIONS into green energy transformation and supporting illegal immigrants.
Washington DC Saturday Night! Or at least Monday night. 13 will get you 20, unless you are in Washington DC.
S&P Global US Manufacturing PMI 47.0 (48.6 exp, 47.9 prior) – lowest since June 2023.
Gold continues to soar!
No, not cold sores, GOLD SOARS!
Whenever the 10Y-2Y Treasury yield curve slope goes negative, it is following by positive slope … then recession. Like clockwork.
Following every recession since the 1970s, the 10Y-2Y Treasury yield curve slope has risen, then declined. This time around, the 10Y-2Y Treasury curve has remained negatively-slope long than usual suggesting a larger than normal snapback. Into a hard landing.
Democrats in particular love hard landings because that green lights them for massive wasteful spending.
More evidence of how destructive Biden/Harris economic policies have been.
The NAR data show existing home sales down 2.5 percent in August to a 3.86 million unit seasonally adjusted annual rate after a small upward revision to 3.96 million units in July.
US existing home sales fell in August to near 14-year lows. Pink box.
Meanwhile, pending home sales (red line) ARE at an all-time low.
Like in the film The Poseidon Adventure, we are living in “The Morning After.”
When The Fed lowered their target rate by 50 basis points yesterday, we saw the 2 year Trreasury rate take a plunge.
With a declining 2-year Treasury yield, we see the 10Y-2Y yield curve going positive.
Of course, mortgage rates are falling with declines in the Fed Funds target rate.
Rates will continue to decline.
If HarrsWalz are elected in two months, we will see a repeat of The Poseidon Adventure. Call it the Harris/Walz Adventure!
If this isn’t election interference, I don’t know what is.
The Fed today slashed interest rates by the biggest amount in 16 YEARS, a whopping 50 basis points from 5.50% to 5.00%. With the economy roaring along (thanks to Covid-related massive Federal spending), there was no good reason to slash rates. Other than to get Kamala (Hyena) Harris across the finish line.
The Fed’s bloated balance sheet remains bloast at 7.115 TRILLION.
The dots plot reveals more rate cuts to come. Or as the flea sang, Food Around The Corner.
Perhaps the voting members of FOMC realize how bad Harris/Walz’s economic policies are??
Kamala Harris and Tim Walz have produced a destructive proposal to solve the inflation problem: price controls. Her biggest supporters like Elizabeth Warren and Ohio’s Sherrod Brown love the idea of meddling in the private sector,
But I would be symapatheic to their arguement if consumer prices soared more than producer prices. However, the truth is that prices paid by producers (PPI) SOARED far more than prices paid by consumers (CPI).
The cause? Federal goverment spending (green line) exploded with Covid. Harris/Walz are proposing massive spending under her administration hence there will be MORE inflation under Harris/Walz. So, the have to rely on flawed gimmics like price controls. Which will lead to shortage, food lines, rastioning, etc.
Market participants are expecting a 50 BPS cut tomorrow. From 5.50% to 4.913%.
This painting represents Washington DC where the deep state lingers in darkness.
The US is on a highway to hell!
The US Federal government just hit a dubious landmark — $1.6 TRILLION in interest payments expected by year end. It is already at $1.2 TRILLION.
Biden/Harris’s spending spree (which Harris wants to continue).
Interest payments will crowd out other expenditures, like Social Security, Defense and Medicare.
Eternal deficits are not sustainable, especially since much of government spending rerpresents payoffs to political donors.
Interest on the federal debt this FY is equal to about half of all personal income taxes collected – we’re a nation of debt slaves.
Yes, under Biden/Harris, the US is on a HIGHWAY TO HELL.
The US is slippin’ into darkness under Biden/Harris.
Q2 marks the 11th STRAIGHT quarter of unrealized losses on investment securities for banks, a streak never seen before. The number of banks on the FDIC Problem Bank List increased to 66 and represents 1.5% of total.
This is in addition to price Increases over last 4 years…
CPI Medical Care: +7.8%
CPI Apparel: +12.7%
CPI Used Cars: +18.3%
CPI New Cars: +20.5%
CPI Food at home: +21.4%
CPI Shelter: +23.4%
CPI Food away from home: +25.4%
CPI Electricity: +29.8%
CPI Gas Utilities: +34.9%
CPI Transportation: +38.8%
US Home Prices: +48.0%
CPI Auto Insurance: +52.4%
CPI Gasoline: +53.5%
CPI Fuel Oil: +54.9%
Don’t spill the wine, its too expensive under Biden/Harris/Powell.
Confounded Interest - Anthony B. Sanders 
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