The Morning Call--The fatal self importance of the Fed

 

The Morning Call

 

9/1/21

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/markets/stocks-end-seven-straight-months-gains-whimper

 

            Yields jump following hawkish comments from ECB officials.

            https://www.zerohedge.com/markets/yields-jump-session-highs-after-knot-urges-immediate-slowdown-ecb-crisis-qe

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications declined 2.4% while purchase applications were off 0.6%.

 

The August ADP private payroll report showed job increases of 374,000 versus forecasts of +613,000.

                                                  https://www.zerohedge.com/markets/job-market-recovery-dented-adp-private-payrolls-miss-huge-only-374k-jobs-added-august

 

                          The August Chicago PMI came in at 66.8 versus projections of 68.0.

                          https://www.advisorperspectives.com/dshort/updates/2021/08/31/chicago-pmi-fell-in-august

 

August consumer confidence was reported at 113.8 versus estimates of 124.0.

                          https://www.advisorperspectives.com/dshort/updates/2021/08/31/consumer-confidence-fell-in-august

 

                        International

 

                          July German retail sales fell 5.1% versus expectations of -0.9%.

 

                          July EU unemployment was 7.6%, in line.

 

The August Japanese manufacturing PMI was 52.7 versus 53.0 reported in July; the August Chinese Caixin manufacturing PMI was 49.2 versus consensus of 50.2; the August German manufacturing PMI was 62.6 versus 62.7; the August EU manufacturing PMI was 61.4 versus 61.5; the August UK manufacturing PMI was 60.3 versus 60.1.

 

                        Other

 

                          Q3 GDP nowcasts remain upbeat.

                          http://www.capitalspectator.com/us-q3-gdp-estimates-continue-to-indicate-solid-growth/

 

            The Fed

 

              On the puffed up omnipotence of the Fed/Powell.

              https://alhambrapartners.com/2021/08/29/weekly-market-pulse-the-illusion-of-control/

 

Here is another great opinion piece on why the Fed needs to stick to its own knitting.  Curing climate change and inequality is a political issue to be dealt with by politicians, not bureaucrats.

              https://www.zerohedge.com/economics/central-banks-need-stop-mission-creep

 

              Another critic joins Summers in concern about the Fed not tapering fast enough.

              https://www.bloomberg.com/news/articles/2021-08-31/fed-now-risks-too-slow-taper-after-too-fast-in-2013-rajan-says?srnd=premium&sref=loFkkPMQ

 

            Inflation

 

              The stagflation risk is real.

              https://www.advisorperspectives.com/commentaries/2021/08/30/the-stagflation-threat-is-real

 

              New home prices rising faster than median household income.

              https://politicalcalculations.blogspot.com/2021/08/inflating-new-home-prices-rising-faster.html#.YS5r8I5KiUk

 

            The coronavirus

 

Two senior FDA officials are resigning because the CDC/White House/politicians are interfering in the FDA’s processes on covid. 

https://www.zerohedge.com/covid-19/two-senior-fda-officials-stepping-down-over-reported-disagreements-white-house-over

 

              More data illustrating how non-lethal the virus is.

              https://www.heritage.org/public-health/report/statistical-analysis-covid-19-breakthrough-infections-and-deaths?utm_source=twitter&utm_medium=social&utm_campaign=thf-tw

 

              And more data on how misleading the data is.

              https://www.zerohedge.com/covid-19/whos-really-being-hospitalized

           

    Bottom line.

 

            Five potential bubbles that could burst.

            https://finance.yahoo.com/news/five-potential-bubbles-may-burst-113839455.html

 

            High risk/high reward.  But not all risk is rewarded.

            https://compoundadvisors.com/2021/not-all-risk-is-rewarded

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

            Quote of the day.

            https://cafehayek.com/2021/08/bonus-quotation-of-the-day-689.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CafeHayek+%28Cafe+Hayek%29

 

            Wednesday morning humor.

            https://www.adamsmith.org/blog/fiddling-while-rome-burns

           

            This archeological site is reshaping the story of civilization.

            https://www.bbc.com/travel/article/20210815-an-immense-mystery-older-than-stonehenge

 

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