For The First Time In 13 Years, The Fed Is Cutting Workers As It Books $100 Billion In Losses
The FED has booked $100 billion in losses in recent months on operations that currently involve paying more in interest to banks on reserve deposits at the Fed than the central bank earns from its roughly $7.5 trillion portfolio of bonds and mortgage-backed securities. Source: www.zerohedge.com, Bloomberg
Wealth by wealth category, average wealth per US household, in Q2, 2023 (wealth = assets minus debts)
The top 50% (= 65 million households) are between fairly well off to immensely rich. Source: www.wolfstreet.com
US Home Prices hit a new all-time high in July while affordability has plummeted to record lows
Source: Charlie Bilello
A government shutdown would reflect negatively on America’s credit rating, says Moody’s, the only remaining major credit grader to assign the US a top AAA rating
“While government debt service payments would not be impacted & a short-lived shutdown would be unlikely to disrupt the economy, it would underscore the weakness of US institutional and governance strength relative to other AAA-rated sovereigns that we have highlighted in recent years,” analysts led by William Foster wrote in a report Monday. Source: Bloomberg
Is the US equity market ripe for a short squeeze?
As highlighted by Goldman Sachs PB: "the amount of shorting in US equities since mid-August is the largest in six months and ranks in the 98th percentile vs. the past decade." Meanwhile, the level of short gamma is the highest in a long time. Dealers have been forced to sell deltas as we have moved lower (chart by Tier1Alpha). This has pressured the market. But we need to keep in mind that gamma works both ways, so a possible bounce from here would force dealers to buy back all that delta they sold recently. Source: The Market Ear
US national debt 23 years later...
Source: Mayhem4Markets
First time in 2023 that ElectionBettingOdds has had Trump in the lead
Source: Bespoke
Friendshoring / nearshoring is indeed happening...After nearly 20 years, the US is once again importing more from Mexico than China
Source: Bespoke
