Dow 700 point meltdown – Inflation is not cured and bodes ill for NZers with mortgages
Dow tumbles more than 500 points as hot inflation data stokes fears about higher-for-longer rates
American Inflation came in hotter this morning and spooked the Dow into a meltdown.
It was down 740 points at one stage, and closed down 524, the S+P dropped 1.37% and the Nadaq fell 1.8%.
The Russell 2000, home to America’s medium sized businesses fell a bruising 4%.
The myth that the West have conquered inflation is just a myth.
The structural changes that moved just-in-time supply chains to just-in-case supply chains has importuned inflation, alongside the continued financialization of home ownership and of course price gouging inflation from Trans National price setters.
This is at odds with flat lining petrol prices given by a much more extreme slump in the Chinese economy.
This means there is no way Orr is lowering our OCR, the pressure is already there to push for 2 more hikes, this is going to be crippling for First Time Home Buyers, 55% of whom are still yet to transition to the much higher rates being charged now.
We see the sudden wild swings of what’s really happening in the economy with the meltdown at Fletcher’s…
Fletcher Building makes loss, chief executive Ross Taylor and chair Bruce Hassall resign
Fletcher Building has made a $120 million net loss after tax in its interim result and its chief executive has resigned, giving six months’ notice.
Chairman Bruce Hassall is also stepping down at the shareholder meeting later this year.
The company remains in a trading halt till 12.30pm today and the result is a 230 per cent drop in profit.
In the half-year to December 31, 2023, the company made $4.2 billion in revenue, down 1 per cent on 1H23 and ebit before significant items of $264m, down 27 per cent on the $360m previously.
…from a $90m profit to $120m loss.
Ouch.
Let’s be clear, this Government’s user pays agenda and desire to put the cost onto the poorest amongst us will not be a solution to an economic downturn!
Austerity as the economy goes into recession only causes social carnage!
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ANZ predicts interest rates will rise
Social carnage it is then. Anything is acceptable to the property owning politicians so long as house prices and rents remain high.
Social carnage it is then. Anything is acceptable to the property owning politicians so long as house prices and rents remain high.
The afficianados? have used hamburger bun prices in different countries to measure economic somethings. Also the height of women’s skirts; tend to go higher as we are in general richer, no matter what the weather.
For a much-followed not-very-academic ‘discipline’ economics, and financial management, still seems to rely heavily on ‘reckons’. Just contrast the place where econs have ended up with the time of Samuel Pepys*, 1600s. He largly brought the navy up to full capacity and excellent condition yet still was put in the Tower for about two years during his career with the navy, for suspicion of popery I think. How badly does an economist group have to fail and transgress before severe punishment is unleashed on them.? These carpet crawlers need to be circumscribed. And I wonder if their facility with words equals their legerdemain with numbers? Few have come near Samuel Pepys’ prowess; I daresay they would hesitate to perform public service involving working with physics and physical skills.
Samuel Pepys
Royal Museums Greenwich https://www.rmg.co.uk › stories › topics › samuel-pepys
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Samuel Pepys · The King is back and the diary begins · War, work and lust · Pestilence and fire · Member of Parliament and prisoner in the Tower
Meh. 700 points on almost 40,000 is hardly a blip (dips like this were high when the DOW was at 15,000 just a over decade ago). The fact is the stock market has always been an excellent inflation hedge and continues to be so. The higher the inflation, the higher the index. And inflation simply is isn’t going anywhere unless the government slashes spending; especially in health and education (both of which are spiralling out of control) but being two sacred cows that the public simply will not tolerate cuts in, it won’t happen.
I propose we go to an inflation adjusted 1990 budget, i.e. where we go back to roughly the same health and education expenditure as a **percentage** of GDP as in 1990. All these ridiculous increases in government expenditure that has not been taxed for (and thus bought into being with debt that will never be repaid) is automatically inflationary.
fuel prices here i the king country have risen 20 cents in the last few weeks .Also went to Hamilton today retail there is dead even in the food court at centre place .The coalition of fuck witts have really got NZ BACK ON TRACK to the bottom of the heap .They have poured $2 billion down the drain and not a peep from the dumb fucks that voted for them .If it had been Robertson they would have been demanding his resignation .While you are all maori bashing these fuckers are giving you one where you dont want it .
Also saw a quarter of the main street shops empty in a sizeable ag service town this week.
And does it feel like everyone you know is shorter of cash than usual?
Not unexpected, inflation will be back to 9% by the middle of the year.
Just managed to get the bank to agree to 6 months of interest only mortgage payments to get through an unexpected event. Had to go through flips and hoops to get it though. The mortgage broker did say if we were property investors it would have been a breeze. I guess that sums up the property ponzi rort nicely.
Look the New Zealand dollar is weaker Vs the U.S. dollar and just blows for one reason and one reason only the U.S. military is way stronger. Now I’m not saying that we all fully I’sa gots gun pa, ameeica fuck yeah and start overdosing on the right to bare arms but we do need a more poweful military and a much much much much, much more holistic view of National Security.