Cryptos Rebound After Zhao Announces Plans An Industry Recovery Fund (Cronos UP 24% Overnight)

Major cryptocurrencies erased losses and turned higher after Binance Holdings Ltd.’s Chief Executive Officer Changpeng Zhao said the world’s largest digital-asset exchange plans to set up an industry recovery fund.

Zhao said Monday the goal was to “reduce further cascading negative effects” of the bankruptcy of rival exchange FTX, adding the fund will assist otherwise strong projects that are facing a liquidity squeeze. 

So, cryptos are up today with Cronos up 24% overnight. Of course, Cronos is trading near zero, so any upturns in price register as large turns.

But across the board, cryptos are up. Of course, if Zhao changes his mind, look out.

I am waiting for the list of pension funds that invested in Sam Bankman-Fried’s schemes.

Let’s see if Alameda Research’s CEO Caroline Ellison faces any wrath from the DOJ or SEC. I doubt it.

How Biden And The Fed Defanged The FANG Index And Clobbered Growth And Real Estate ETFs (Cousin Eddie And Clark Griswold Strike Again!)

There is no doubt that Biden is the Cousin Eddie of politics with his gifts that keep on giving. Like rampant inflation, soaring food, gasoline and diesel prices, and Pelosi/Schumer’s helping hand in creating price controls that will kill potential cures for illnesses.

In addition to rampant 40-year highs in inflation, we have the Clark Griswold of the economy, Fed Chair Jerome Powell, slamming his foot on the economic breaks to combat inflation created by Biden’s energy mandates and reckless Federal spending (like the aforementioned, laughable “Inflation Reduction Act.”

So, Biden helps creates massive inflation and Powell and the Gang counterattacked by raising their target rate with more to come (at least until May 2023). And with the implied Fed Funds rate soaring (red line), we are seeing the FANG stocks (Facebook or Meta, Amazon, Netflix and Google) falling more rapidly (white line) than the S&P 500 index. Which is also falling like a rock (yellow line). All this is happening as M2 Money YoY crashes and burns.

How about growth versus value under Cousin Eddie and Clark Griswold? The Vanguard Growth ETF and Vanguard Real Estate ETF are plunging with Fed tightening (red line). Vanguard’s Value ETV (yellow line) is down too, but not by as much.

Yes, Washington DC elites. The gift that keeps on giving … bad things.

Thanks to my former GMU student Andrew Edwards for the Cousin Eddie suggestion!

Recession Warning? Total US Foreclosures Starts UP 440.91% YoY In June (Black Knight)

This bit of housing news won’t soothe the Biden Administration which is terrified of getting blamed for a recession.

Total US foreclosure starts are up 440.91% YoY in June, according to Black Knight.

Rising mortgage rates, declining REAL wage growth? This spells trouble in River City (Potomac River city, that is!)

Welcome to the Land of a Thousand home foreclosures!

Slowing! US Personal Consumption Expenditures Drop To 0.2% MoM In May As PCE Deflator Hits 6.3% YoY (US Mortgage Rates Slip to 5.7%, the First Decline in Four Weeks)

The US economy is slowing as inflation ravages consumers. US Regular Gasoline prices, for example, are up 104% under President Biden which helps to slow the economy.

US personal consumption expenditures fell to +0.2% MoM in May as “inflation” or real personal consumption expenditures PRICES rose +6.3% YoY as The Fed’s balance sheet (aka, Master Blaster!) remains.

As I mentioned above, US regular gasoline prices are UP 103% under President Biden, diesel prices (the cost of shipping goods to markets like … food is up 119% under Biden while CRB foodstuffs is up 55% under China Joe.

Now we have mortgage rates in the US falling for the first time in four weeks. The average for a 30-year loan was 5.7%, down from 5.81% last week, Freddie Mac said in a statement Thursday.

This year’s Fourth of July celebration is going to cost 18% more than last year’s celebration.

Lastly, the Atlanta Fed GDPNow real time tracker for Q2 is showing … -1% GDP “growth.”

So, yes, the US economy is slowing.

Infrastructure Bill Contains 2% Cut In Medicare Reimbursements And Delay In Implementation Of Competitive Drug Rebate Rule (Landrieu Will Coordinate Infrastructure Plan)

How did healthcare insurance companies get a seat at the table for the massive infrastructure bill is beyond me.

President Biden and Congressional Democrats are celebrating the signing of the $1.2 trillion Infrastructure Bill at the White House. Remember, of the $1.2 trillion estimated price tag, less than 10 percent –$110 billion – will fund true infrastructure: bridges, roads, tunnels, and waterways.

And what the hell is healthcare doing in the infrastructure bill?

H.R. 3864 will restore a 2 percent cut in reimbursements to Medicare providers, on top of all the other federal payments reductions.

A second health care provision buried in the $1.2 trillion infrastructure bill delays implementation of the Medicare Part D Rebate Rule, a Trump-era rule that would inject competitive forces into the market for prescription drugs. Just like payment cuts, by delaying this rule, desperately needed drugs will remain unaffordable and therefore unavailable.

And they wonder why there is a going concierge medicine movement that won’t accept Medicare and healthcare insurance. It is The Red Hour for free markets.

Biden has appointed former New Orleans Mayor Mitch Landrieu to coordinate infrastructure plan implementation.

I am Landrieu.” Former mayor of the most corrupt city in the United States. Makes sense that Biden would choose Landrieu to coordinate the infrastructure plan.

Reverse Repos Parked Overnight At Fed Remain Near $1,418 BILLION As UBS Warns Of Stagflation And 50% Stock Plunge

When something is wrong with the economy.

Banks park funds at The Federal Reserve in an attempt to soothe themselves.

Nothing has been the same since the housing bubble of the 2000s, the resulting banking meltdown and the takeover of the economy by The Federal Reserve.

And since the 2000s housing bubble and financial crisis, The Federal Reserve has taken control of the economy resulting in M2 Money Velocity crashing to historic lows.

UBS ran a simulation that shows stocks could lose up to 50% under rare stagflation scenario.

And The Fed says “Hold on, we’re coming!”

My reaction to Biden’s Build Back Better spending spree and The Fed keeping rates repressed.