Author: Admin

Sometimes it takes the naive and innocent to tell the unvarnished truth. In the Hans Christian Andersen tale, “The Emperor’s New Clothes,” a child shouts out that the Emperor has no clothes; he is naked. As the story unfolded, a scurrilous group of weavers had convinced the Emperor that they were creating the most magnificent wardrobe ever worn by any monarch when the reality was that they had spun only an illusion out of thin air.Not wanting to offend their ruler, all the people in the kingdom went along with this delusion until one small child stood up and shouted…

Read More

High-Frequency Wall Street There is the dimension of the High-Frequency Traders, a lightning-fast world of high-speed communications and supercomputers. In this dimension, trades are made literally in the blink of an eye. A High-Frequency Trader buys and sells before a conventional order reaches the floor for execution. In a couple of minutes, it takes for our home computer to route an order from the internet service provider (ISP), to broker, to executing authority, and back to you, a High-Frequency Trader (HFT) could have executed and settled a couple of trade, far outdistancing you and me.Many on Wall Street consider High-Frequency…

Read More

The 20-nation Euro-Area saw Second Quarter 2023 GDP Growth lower than the First Quarter by 0.5%. After achieving a 1.1% growth in the first quarter of this year, this flash estimate fell to 0.6%. Although this was higher than analysts expected, it still does not bode well for the Euro-Area Economies. Note: This may be confusing. The European Union is now reporting two Economic Reports: one for the entire European Union (27 countries) and one for the Euro-Area (the top 20 Countries).Ireland led the way for this 20-nation Euro-Area report, which saw its economy grow by 3.3% in the second…

Read More

Around the world, we continue to see a decline in the inflation rate this summer. This morning both Italy and the Euro-Area reported a lower rise in prices. In the past month, 15 of the top 20 economies have reported lower inflation on a month-over-month basis. This morning Italy reported that inflation on an annual basis declined by -0.4% to 6.0%. You can find the Italian report here: https://www.istat.it/en/archivio/287196 While the Euro-Area reported a 2.8% decline in inflation to 5.3% annualized. Their report is here: https://ec.europa.eu/eurostat/documents/2995521/17250642/2-31072023-AP-EN.pdf/15e48908-7c76-34f0-34c6-3067bb87be85 We continue to see a close correlation between energy cost and inflation, as demonstrated…

Read More

Ukraine has been the center of two conflicts, the military and diplomatic, for nearly a decade. We’ve all seen the military conflict; Leopard Tanks and Kinzhal Missiles fight it. It’s the one that grabs all the headlines that many Americans follow. But while the military battles garner our attention, the Diplomatic conflict will likely have a lasting impact on America’s future.As long as this remains a “regional conflict,” it is not likely that this part of the War will significantly impact our day-to-day lives. The same cannot be said about the Diplomatic War that revolves around the Ukraine Conflict. This…

Read More

I get that very American, upbeat response when I ask people how things are going. “Things are great,” “Couldn’t be better.” It’s all part of the essential American character. By nature, we tend to be optimists, seeing the glass as half full. And that robust, positive outlook continues today, but with some reservations.Americans have been through a lot this last few years, from the Pandemic and its economic lockdown, which brought the country to a nearly complete halt, to this bothersome inflation. It’s been a time when health and finances have been at the forefront of our minds.So yes, most…

Read More

Today Rossat, the Russian Federation’s official statistics service reported that corporate profits in Russia rose for the fifth month to 11.8 billion rubles. Although the Russian economy continues to expand, it remains, at least in terms of corporate profits, at less than half the level of this time last year. And within that simple fact lies a story of immense importance, one that spans the entire globe. Last year, as you know Russia began, what they called a Special Military Operation in Ukraine. In retaliation the European Union imposed “massive and unprecedented sanctions against Russia.” And they’re right, no nation…

Read More

Stunning monetary aggregate numbers were coming from the ECB this morning. For economists, one of the best leading indicators is the performance of money. As money accelerates, going from hand to hand to hand more quickly, it shows that the economy is expanding. The way to visualize this is money traveling from the wage earner, to the local shopkeeper, to the wholesaler. As workers get paid, they purchase goods at their local store, which buys more to restock their shelves. The primary measure of money is M1, which consists of cash and overnight deposits. Last night the ECB reported that…

Read More

Virtually all of Wall Street and most seasoned “Fed Watchers” expect the US Federal Reserve to raise interest rates by another one-quarter percent when they announce their latest interest rate decision this afternoon. If so, this will be the eleventh rate hike in just sixteen months and the most rapid rise in history on a percentage basis. The Fed will have taken its primary interest rate from less than one-quarter percent to now five and a half percent.The Fed behaves like this is a strong economy, and its chief mission is to curb runaway inflation. More precisely, the Fed believes…

Read More

Two reports on Real Estate were released today. The first report from the Federal Housing Financing Agency (FHFA) reported that those homes who obtained their mortgages from FHFA appreciated 0.7% in May. These are considered more expensive homes purchased by buyers who qualified for FHFA mortgages. Even though these homes are increasing in price, it is at a steadily reduced rate of gain. The second report was from Standard & Poors, the Case-Shiller measure of the entire housing market. This index has shown a decline in housing prices for the past three months, with substantial variation by region. Both Las…

Read More