Sunday recap
Banking problems and how its affecting us now:
Right now we are starting to see the Problems caused by the Banks with the fact that their executives have been making mistakes and contributing for the poor management and bad use of their banking regulations. We have seen that First Republic’s filings showed the lender was offering joke of a deal, non-government-backed mortgages at fixed rates that were interest-only for ten years in some cases. This joke has been ignored and now we can see how it turned out. This problem started with small lenders but it spread to higher places, the regional banks, and we are including SVB. If The government and the FED wouldn’t have come for rescue all SVB s deposits it would have been very problematic for the economy.
With this FED has been creating more problems for the economy one after the other.
They are trying to solve the problem with the US debt ceiling but still creating more dept, quite contradicting their motives with their actions. This leads me to believe the Government won’t allow the US to default on its debt though every investor, politician and economist is now confused if the US Government can actually avoid crashing into its statutory debt ceiling and a potentially catastrophic technical default that could follow right after.
The US inflation data is coming next week and this will provide us with clues if the FED can pause or will have to continue with the rate hikes at the next month meeting. The CPI increased 5.5% this shows that since it has been continuing and persisting may suggest that have a persistent inflation. The core rate have been stable from 5.5 to 5.7 percent range for 4 months showing us inflation. After us understanding this we can observe we need to keep looking at data cause we are not sure if Powell actually means what he said “ the rate hikes might already be sufficiently restrictive”
For now that’s all of important things we need to consider till next week and a small fun recap of what has been happening.
Wish you all a great Sunday and I will not be trading on Monday but I will post a report like in last week.
Ps: Won't include data since i put those during the week.
Right now we are starting to see the Problems caused by the Banks with the fact that their executives have been making mistakes and contributing for the poor management and bad use of their banking regulations. We have seen that First Republic’s filings showed the lender was offering joke of a deal, non-government-backed mortgages at fixed rates that were interest-only for ten years in some cases. This joke has been ignored and now we can see how it turned out. This problem started with small lenders but it spread to higher places, the regional banks, and we are including SVB. If The government and the FED wouldn’t have come for rescue all SVB s deposits it would have been very problematic for the economy.
With this FED has been creating more problems for the economy one after the other.
They are trying to solve the problem with the US debt ceiling but still creating more dept, quite contradicting their motives with their actions. This leads me to believe the Government won’t allow the US to default on its debt though every investor, politician and economist is now confused if the US Government can actually avoid crashing into its statutory debt ceiling and a potentially catastrophic technical default that could follow right after.
The US inflation data is coming next week and this will provide us with clues if the FED can pause or will have to continue with the rate hikes at the next month meeting. The CPI increased 5.5% this shows that since it has been continuing and persisting may suggest that have a persistent inflation. The core rate have been stable from 5.5 to 5.7 percent range for 4 months showing us inflation. After us understanding this we can observe we need to keep looking at data cause we are not sure if Powell actually means what he said “ the rate hikes might already be sufficiently restrictive”
For now that’s all of important things we need to consider till next week and a small fun recap of what has been happening.
Wish you all a great Sunday and I will not be trading on Monday but I will post a report like in last week.
Ps: Won't include data since i put those during the week.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.