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rose98734
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@rose98734
0
1 day ago
economy
Is the American economy really that strong if the Fed cuts rates in two consecutive meetings?
So the Fed cut interest rates by 25 basis points following the 50 basis points cut in September. That's a cumulative 75 basis points. The last time we saw cuts like this was at…
@rose98734
0
3 days ago
economy
What does Trump's win mean for the US economy?
Well, the bond markets think his Presidency could be inflationary, leading to higher interest rates. Here is what happened to the 10 year US Treasury bond yield on Nov 6th as the results came in:
@rose98734
0
6 days ago
economy
US 30-year mortgage rates are back above 7%
Here is the chart: source They'd been heading downwards, right until the Fed in it's wisdom decided to cut the base rate by 50 basis points on Sept 18th 2024.
@rose98734
0
10 days ago
economy
Bond markets react negatively to the UK budget
The Chancellor of the Exchequer, Rachel Reeves, tried to leak most of her budget in the weeks leading up to it, so that both markets and voters had a chance to digest it in bits…
@rose98734
0
12 days ago
economy
VolksWagon is in trouble
VolksWagon was famously rescued by the occupying British in the post-war "British zone" in north-western Germany, and has continued uninterrrupted ever since. But the trade…
@rose98734
0
14 days ago
economy
Sales of existing homes in the USA are the lowest since 1987
... 37 years ago. Here is the graph: source What is causing this? Simple: many existing home owners re-mortgaged during the Covid era when mortgage rates wer
@rose98734
0
15 days ago
economy
Foreign holders dump US debt
Here's the percentage share of US treasuries held by foreign investors: [source](
@rose98734
0
16 days ago
economy
The next US President faces a huge interest rate bill
Interest paid annually on the US National Debt already exceeds the defence budget. But things are about to get worse. The US tends to borrow short term (5 years or less) and a…
@rose98734
0
19 days ago
economy
De-dollarization didn't happen, de-euroization did
When the Ukraine war started, and Russia was removed from the SWIFT system amongst other sanctions, all the talking heads started chattering about de-dollarization. Surely Russia…
@rose98734
0
20 days ago
economy
US Government spending is out of control
Take a look at the following chart of US Government spending as a percentage of GDP (the data goes all the way back to 1798) source Usually spending spikes dur
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