Dow books best month since 1987

[blacksmithden]

Attachment 49164

This fellow is from Singapore, but I like his outside perspectives.

The more I read, the more Im set on copper mining stocks. The bigger China gets, the more the demand for copper is going to grow. Any idiot can look up the metals required to make a battery, but they seem to be ignoring the one metal they just cant do without. They arent going to make battery cables and switch contacts out of lithium, cobalt, nickel, etc. You cant make electric motor windings out of it either. You cant wind a windmill generator without it. Aluminum house wire was tried and they wont be pulling that crap again anytime soon. I also suspect there will be problems with pex plumbing as the years march on and it will be declared a failure as well. Copper demand is just going to keep rising, and the increse in mining isnt going to be able to keep up. You want to see a $100,000 GM/Ford/Chrysler electric mini-shitbox car ? Wait 10 years.

There are quite a few companies working on new ways to filter lithium out of salt water and I expect them to pull it off somewhere down the line. That will drop the price quite a bit. You dont need much of it for a battery and there are other metals being experimented with all the time. Copper mining and processing hasnt changed much in the past 50-100 years. Theyve got it figured out about as well as theyre going to and they're already cranking it out as fast as they can. Unless someone discovers some miracle copper mine AND theyre allowed to develop it, the only place the copper industry is going is up.

[M1917 Enfield]

Stocks slide on weak economic data, gold hits $2,022

The S&P 500, Dow Jones Industrial Average and Nasdaq Composite closed lower across the board after a pullback in job openings, a drop in factory orders and a warning from JPMorgan CEO Jamie Dimon on the banking crisis.

Industrial and energy stocks led the selling, while utilities notched modest gains.

Investors fled to the safety of gold which registered its fifth highest close in history.

Oil gained 0.3% to $80.71 per barrel.

[Camo tung]

Stocks slide on weak economic data, gold hits $2,022

The S&P 500, Dow Jones Industrial Average and Nasdaq Composite closed lower across the board after a pullback in job openings, a drop in factory orders and a warning from JPMorgan CEO Jamie Dimon on the banking crisis.

Industrial and energy stocks led the selling, while utilities notched modest gains.

Investors fled to the safety of gold which registered its fifth highest close in history.

Oil gained 0.3% to $80.71 per barrel.

Hardly shocking. This is exactly what the pied piper Powell stated was needed to lead us all back to the land of milk and honey. I believe his other goal of Janet Yellen getting a decent haircut will likely happen first though.

[M1917 Enfield]

Fed raises interest rates a quarter point, hints at pause in inflation fight

Fed hikes interest rates to 16-year high


The Federal Reserve on Wednesday raised its benchmark interest rate by a quarter of a point, but opened the door to a long-awaited pause in its most aggressive tightening campaign since the 1980s.

The widely expected and unanimous decision puts the key benchmark federal funds rate at a range of 5% to 5.25%, the highest since August 2007, from near zero a little more than one year ago. It marks the 10th consecutive rate increase aimed at combating high inflation and slowing the economy.

But for the first time in a year, policymakers signaled that future rate increases are not a given, suggesting that additional policy moves will hinge on "incoming information."

"In determining the extent to which additional policy firming may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments," the Fed said in its post-meeting statement.

[Camo tung]

Fed raises interest rates a quarter point, hints at pause in inflation fight

Fed hikes interest rates to 16-year high


The Federal Reserve on Wednesday raised its benchmark interest rate by a quarter of a point, but opened the door to a long-awaited pause in its most aggressive tightening campaign since the 1980s.

The widely expected and unanimous decision puts the key benchmark federal funds rate at a range of 5% to 5.25%, the highest since August 2007, from near zero a little more than one year ago. It marks the 10th consecutive rate increase aimed at combating high inflation and slowing the economy.

But for the first time in a year, policymakers signaled that future rate increases are not a given, suggesting that additional policy moves will hinge on "incoming information."

"In determining the extent to which additional policy firming may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments," the Fed said in its post-meeting statement.

Wouldn't have anything to do with a record number of consecutive interest rate hikes hurting a re-election bid would it?

[blacksmithden]

Wouldn't have anything to do with a record number of consecutive interest rate hikes hurting a re-election bid would it?

Likely has to do with young liberal voters starting to lose their $1+million dollar 700 sq ft homes in Toronto and Vancouver.

[M1917 Enfield]

May 15, 2023 11:50am

Household debt hit record $17T last quarter as inflation squeezes Americans

Credit card debt hovers near record high in first quarter, bucking typical trend








Americans racked up more debt at the beginning of 2023 – and a growing number of households fell behind on payments for several types of loans, according to a New York Federal Reserve report published Monday.

In the first three months of 2023, total household debt surged to a fresh record of $17.05 million, an increase of $148 billion, or 0.9% from the previous quarter. Balances are now $2.9 trillion higher than they were at the end of 2019, before the COVID-19 pandemic began.

Debt largely grew across the board.

Mortgage balances jumped by $121 billion to $12.04 trillion at the end of March, even as mortgage originations plummeted to the lowest level since 2014. Auto loan balances, meanwhile, rose by $10 billion in the first quarter – bucking the typical trend of balance declines in first quarters. Student loan debt also posted a modest increase, rising to $1.6 trillion.

DEBT CEILING SHOWDOWN RISKS TRIGGERING ‘SELF-INFLICTED’ RECESSION

Credit card balances were the only form of debt that did not increase at the start of the year. Balances remained unchanged at $986 billion – the highest level on record – in the period from January to March, which is typically a time when consumers rein in spending after the holiday season and pay down debt.

For instance, over the past 10 years, credit card balances typically drop by 3% in the first quarter, according to the Fed, suggesting that high inflation is continuing to burden households financially.

"This is the first time in more than 20 years that we've seen a first-quarter increase," New York Fed researchers said during a call with reporters. "And I think that's something that's worth flagging here that we're still seeing. I think that credit card balances are really looking a little unusual right now."

FED RAISES INTEREST RATES A QUARTER POINT, HINTS AT POSSIBLE PAUSE

The rise in credit card usage and debt is particularly concerning because interest rates are astronomically high right now. The average credit card annual percentage rate, or APR, hit a new record of 20.33% last week, according to a Bankrate database that goes back to 1985. The previous record was 19% in July 1991.

If people are carrying debt to compensate for steeper prices, they could end up paying more for items in the long run. For instance, if you owe $5,000 in debt – which the average American does – current APR levels would mean it would take about 277 months and $7,723 in interest to pay off the debt making the minimum payments.

"It's been a really rough year for credit card holders," Matt Schulz, the chief LendingTree credit analyst, told FOX Business. "Even though the Fed seems to be taking their foot off the gas with interest rates, the unfortunate reality is credit card holders shouldn’t expect things to get a ton better anytime terribly soon, just because interest rates aren’t going down anytime soon."

While delinquency rates remain relatively small, there was an uptick in borrowers who are struggling with credit card and auto loan payments. As of March, about 2.6% of outstanding debt was in some stage of delinquency, up slightly from the 2.5% recorded the previous quarter. That remains 2.1 percentage points lower than the pre-pandemic level.

But the fact that there is any semblance of delinquency rates rising during such a strong labor market is concerning. If the unemployment rate begins to rise – which many economists expect due to the aggressive monetary policy tightening underway by the U.S. central bank – that could be worrisome for consumer debt and delinquency levels.

The rise in balances comes in the midst of the Federal Reserve's aggressive interest rate-hike campaign as it tries to crush stubborn inflation and cool the economy.

[M1917 Enfield]

Published May 15, 2023 11:11am EDT

Biden is setting up the 'greatest wealth transfer in history'

Biden does not respect successful, hard-working Americans, Stuart Varney argues









During his latest "My Take," Monday "Varney & Co." host Stuart Varney warned Biden's proposed wealth tax is a "setup," arguing the socialist wing of the Democrat Party is laying the groundwork work to "seize your money" by demanding successful Americans hand over a portion on their wealth to the government.

STUART VARNEY: This is a setup. A warning of the ugliness to come. "The greatest wealth transfer in history is here, with familiar (rich) winners."

That's the New York Times, the bible of the left, laying the groundwork for the seizure of your money.

BIDEN PITCHES SOAK-THE-RICH TAX PLAN: HERE'S WHAT'S IN IT

They don't think it's fair that older people are rich. Baby boomers, 60 to 80 years old, have accumulated $78 trillion, mostly in real estate and stocks.

Don't kid yourself. You didn't make it by hard work, drive, brains, and good judgment.

No, as the Times says, you made it, in part because of "years of housing discrimination and a lack of access to financial tools and advice for people of color."

BIDEN SET TO UNVEIL SLEW OF TAX HIKES ON WEALTHY AMERICANS, CORPORATIONS IN BUDGET

Since the vast majority of baby boomers with money are white, their white children and white grandchildren will inherit the money, thus continuing racial inequality.

It’s a setup for a wealth tax. The socialist wing of the Democrat Party, demands that you add up the value of all your stocks, bonds, houses, businesses, and even artwork.

Then, you will have to fork over a portion of that wealth, every year to the government. It doesn't matter whether your investments are up or down. Just having money is the excuse to take it off you.

EXPERTS OUTRAGED OVER BIDEN'S NEW MORTGAGE RULE PUNISHING BUYERS WITH GOOD CREDIT

They don't respect success. Think about this. You've saved and invested. Done the right thing. Worked hard and plan to pass along what you've made.

You're a successful American. Stand up and demand the respect you deserve.