Money Grabbers Indigestion?
"With the difference between future and current (selling) prices received, a.k.a., pricing pressure, crashing to historic lows, the menu choices have been reduced to three: lower future costs, lower future profits or a combination platter of the two. Whatever balance sheet disruption risk you're craving, the answer is the same: indigestion.
First choice speaks to inflation switching to disinflation/deflation, risk of inflation curve inversion and risk of nominal yield curve inversion. Second choice speaks to peak profits and risks for lower equity prices and wider credit spreads. Third choice: reread the last two sentences." - Here Today, Gone Tomorrow - Daniel DiMartino BoothNattering - DDMB, indigestion indeed. Excellent missive. Declining real wages means there is no labor shortage. Lacking meaningful wage inflation there never was any recovery. All of these narratives including the inflation hysteria are part of a massive canard being perpetrated upon an unsuspecting public by a pack of money grabbers. What's that you say St. Vincent?
FDR - Nattering Naybob, You beat me to the punch on the great Lombardi you tube link.....
Also excellent comment to add to Danielle's excellent confluence of NFL Philadelphia history, the the Philly Fed's new orders index. Cudos to the author for combining these two tid bits.
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Size Is Not All: Distribution of Bank Reserves and Fed Funds Dynamics
http://libertystreeteconomics.newyorkfed.org/2018/07/size-is-not-all-distribution-of-bank-reserves-and-fed-funds-dynamics.html
“In particular, we show that a measure of the typical trade in the market known as the effective fed funds rate (EFFR) could rise above the rate paid on banks’ reserve balances if reserves remain heavily concentrated at just a few banks.” (and who would have guessed?)