Boy the “neoliberal conspiracy!” continues apace… these crafty neoliberals really getting over on the poors… good thing the government is just “an agent of capital!”….
🤔
BREAKING: Citigroup $C closes at lowest price in 3.5 years pic.twitter.com/ssEEsdeT7r
— Barchart (@Barchart) October 23, 2023
Citi's got problems?
ReplyDeleteI don’t think so Mike but the NPV of their future earnings is now worth much much less with the risk free rate increased from 0.1% to 5.5% in unprecedented fashion by Biden to help Biden with his “inflation” political problem…
ReplyDeleteEven JPM is down at 140 which is well below their all time high of 178 a few years ago… even though they are making more munnie…
The price of all financial assets is a (inverse) function of the risk free rate ..,, which is controlled by government..,
A 10yr bond issued at 1% now with a 5.5% risk free yield is worth 34% LESS than when issued…
ReplyDeleteSame with stocks…
Marty Zweig (RIP) : “don’t fight the Fed” I think he was right…
We just haven’t had to deal with policy rate adjustments since Sept 2008 when Obama took over.,,
Gotta get Trump back in there to smack down these monetarist Fed morons…
https://www.reuters.com/article/china-markets-stimulus/chinas-pump-priming-spurs-investor-bets-on-further-monetary-easing-idUKL4N3BV2IJ
ReplyDeleteLooks like more turmoil for Chinese markets ahead. Injecting more reserves to boost lending (we know that doesn't work...),but on the other hand local governments apparently will be able to borrow more so that's a form of deficit spending so that may help.
St. not sure how it works for them (probably similar) but their equity markets are also down in response…
ReplyDeletehttps://x.com/economics/status/1716379221700792750?s=61&t=2WPBW-5PNOSZxkEWhNtQfw
ReplyDelete“ Chinese stocks have erased all the gains seen during the massive reopening rally that took off late last year. ”
These monetarists force reserve assets onto bank balance sheets “to lend out!” and as regulatory capital is fixed banks have to reduce the PV of all other assets to maintain fixed regulatory ratio…
ReplyDeleteiow they Art Degree morons who cannot even apply 8th grade Algebra…