Biden Releasing 10 Million More Barrels of Oil From US Strategic Petroleum Reserve (Reserve DOWN -35% Under Biden Before Additional Release, Foodstuffs UP 50%, Heating Oil UP 130%, Gasoline UP 61.4%, Public Debt UP 12%)

Nothing from nothing. The should be the campaign motto for the midterm elections.

What do we have? Regular gasoline prices are UP 61.4% under Biden, the strategic petroleum reserve is DOWN -35% before Biden’s latest release of another 10 million barrels. Foodstuffs are UP 50% under Clueless Joe, and heating oil futures are UP 130% under dementia Joe.

And thanks to free-spending Joe, Nancy and Chuckie, US public debt is at $31.1 TRILLION. That is ANOTHER 12% in national debt under the 4 Horsemen of the Economic Apocalypse.

For an additional 12% in national debt (to be paid by our children and grandchildren), we have crippling inflation.

Great job DC!

Down, Down, Down! Challenger Job Cuts Rises 67.6% Following Worst US JOLTS Report Since Covid Outbreak (Conference Board Predicts 96% Probability Of Recession Over Next 12 Months)

Challenger US Job Cut Announcements for September rose 67.6%, the highest since … Covid-19 outbreak in early 2020. This comes after the JOLTS (job openings) fell the most since … Covid-19.

And with rising US job cuts, we are seeing an increase in the probability of a US recession over the next year. But the Conference Board predicts a 96 percent likelihood of a recession in the US within the next 12 months.

Apparently, the US is going down, down, down.

This index quantifies sentiment using 6 factors — price breadth, pairwise correlation, low vol perf, defensive vs. cyclical sector perf, high vs. low leverage perf and high yield spreads.

It’s currently as panicked as in 2008!

JOLT! US Job Openings Plunge To Covid-Lockdown Levels (Will The Fed Notice??)

Ain’t this a kick in the head!

US job openings in August plunged to the grim days of the Covid lockdown. According to the JOLTs numbers, US job openings fell by -1,117.

But will The Fed notice? Or continue their inflation fight??

Great Reset?? US Treasury 10yr Yield Tanks -20 Basis Points (UK 10yr Tanks -24.1 BPS)

As I frequently told my investment and fixed-income securities students at Chicago, Ohio State and George Mason University, any 10 basis point change in the US Treasury 10-year yield is significant.

But how about today’s 20 basis point decline in the US Treasury 10-year yield?

The UK’s 10-year yield is down even more at -24.1 basis points. Germany is down -18 bps and France is down -10.3 bps.

Speaking of credit default swaps, Credit Suisse is back to financial crisis levels while UBS and Deutsche Bank are not … yet.

And gold jumped $28.5 dollars today as POP goes the yield.

With all the turbulence in markets thanks to the war in Ukraine and Biden’s green energy mandates and spending (not to mention Statists like Klaus Schwab screaming about a Great Reset), I was reminiscing about more simple times.

Lehman Debacle 2? Credit Suisse Market Turmoil Deepens After CEO Memo Backfires (Credit Suisse’s CDS Now Higher Than During 2008-2009 Financial Crisis)

New CEO Koerner sought to reassure employees in Friday memo
Shares fall to a fresh record low, gauge of credit risk rises

It is like the Lehman Brothers debacle in 2008 all over again.

(Bloomberg) — Credit Suisse Group AG was plunged into fresh market turmoil after Chief Executive Officer Ulrich Koerner’s attempts to reassure employees and investors backfired, adding to uncertainty surrounding the bank.

The stock, which had already more than halved this year before Monday’s sell-off, fell as much as 12% in Zurich trading to a record low that values the firm at less than $10 billion. That was accompanied by a spike in the cost to insure the bank’s debt against default, which jumped to its highest ever.

Koerner, for the second time in as many weeks, had sought to calm employees and the markets with a memo late Friday stressing the bank’s liquidity and capital strength. Instead, it focused attention on the dramatic recent moves in the firm’s stock price and credit spreads, and investors rushed for the exit when trading reopened after the weekend.

One notable difference between 2008 and today is that Credit Suisse’s equity was flying high in June 2007 then crashed a the global banking crisis went into full motion. We then saw Credit Suisse’s credit default swaps soar in early 2009. But today Credit Suisse’s equity is a pale imitation of its former self, but its credit default swap is now higher than it was at its peak in early 2009.

Credit Suisse is now trading lower than its European rival Deutsche Bank (aka, The Teutonic Titanic).

Yes, this brings back sickening memories of the 2008-2009 global financial crisis. Let’s see how The Federal Reserve, ECB and Bank of Switzerland handle this debacle, particularly with M2 Money growth so low.

It appears that we are in another Lehman debacle. Or should I say “Lemur Bros.”

Livin’ In Biden’s Paradise! Percentage Of NYSE Stocks Closing Above 200 Day Moving Average Collapses To 13.48% (Bollinger Band, Fibonacci, Elliott Wave, Ichimoku)

My 401k is Livin’ in Biden’s Paradise.

The percentage of NYSE stocks closing above the 200 day moving average has collapsed to 13.48% as The Fed tightens to fight Bidenflation.

Bollinger Bands? The lower band is near breaking.

Fibonacci retracement? NOT retracing.

Elliott Wave? I feel like I am at the bottom at Nazare, Portugal.

Ichimoku cloud? The NYA index is so far below the cloud it has landed.

Yes, I feel like my 401k is surfing at Nazare, Portugal.

Wasting Away In Bidenville! Dow Tanks -500 Points On Friday As Fed Reaffirms Their Fight On Bidenflation

My investments are wasting away in Bidenville! Looking for my lost 401k value.

The Dow Jones Industrial Average was DOWN -500 points on Friday as The Federal Reserve continues their fight against inflation (green line).

If fact, since January 4, 2022, the Dow is down -22%.

Negative wage growth, relentless inflation, collapsing 401ks, we are wasting away in Bidenville.

Hey Joe! Where is the US economy? With Jackie Walorski??

UMich Buying Conditions For Houses Remain Depressed As Fed Tightens (Fed’s Brainard Calls For Fed To Keep Tightening!)

Bidenflation and The Fed’s counter-attack has caused considerable damage to the housing and mortgage markets.

Today, the University of Michigan consumer sentiment indices were released for September. Of note, buying conditions for houses remained in the tank.

Meanwhile, Fed Vice Chair Lael “Brainless” Brainard is calling for The Fed to NOT stop tightening money and raising interest rates.

As The Fed tightens, the entire range of Agency MBS TBA (to be announced) are under $100.

For example, the FNCL 2.5% TBA is now 84-17. And falling like a paralyzed falcon.

Here is Brainard with Fed Chair Jerome “Foul Owl” Powell, the dynamic duo of crashing markets.

Wipe Out 2! Bitcoin And Ethereum Plunge As Fed Tightens And US Dollar Soars

Wipe Out 2!

In addition to global equities taking a massive hit, cryptocurrencies Bitcoin and Ethereum have fallen -72% since November 2021 as The Fed (aka, The Sugar Shack) tightens interest rates.

Torquay!

Wipe Out! $32 TRILLION In Stock Value Wiped Out (US Core Deflator Rises To 4.9% Prompting Taylor Rule Fed Target Rate Of 9.65%, We Are Currently At 3.25%)

Wipe out!

$32 TRILLION of global stock value has been wiped out since December 2021.

Today’s core PCE deflator reading of 4.9% YoY shows that the inflation surge is not over. With a core PCE deflator of 4.9%, the Taylor Rule suggests that The Fed Funds Target Rate should be at 9.65%, far below its current level of 3.25%. So, IFF The Fed is following any sort of rule, rates should continue to soar.

And if we use headline inflation of 8.30% YoY, the Taylor Rule suggests hiking the target rate to 14.75%.

After yesterday’s dismal Q2 report of -0.6%, I fully anticipate a recession. Ain’t this a kick in the … head.