Recession

Monday, stocks in Asia fell 0.4%, in Europe rose slightly, and in the U.S. gained 0.7% on 9B shares traded. Precious metals miners fell 3%.

Tuesday, stocks gained 0.3% in Asia, closed little changed in Europe, and lost 0.7% in the U.S. on 10B shares traded. Precious metals miners rose 2%.

Wednesday, stocks closed little changed in Asia but gained 0.5% in Europe, and 1.6% in the U.S. on 11B shares traded. The VIX moved up 6% to close at 23.24. The 10-Year U.S. Treasury bond yield rose 2% to close at 2.73. Precious metals gained 1% and their miners moved up twice that amount. The Dow, NASDAQ, S&P 500, and NYSE indices respectively closed above 32,000, 12,000, 4000, and 15,000.

The market-moving event of the day was the FOMC decision to raise the key interest rate 0.75%. When true inflation is roaring above 10%, that clearly is a token move indicating the Fed really is not serious about beating inflation.

Thursday, stocks moved up 0.4% in Asia, 1.0% in Europe, and 1.1% in the U.S. on 11B shares traded. 4. The 10-Year U.S. Treasury bond yield declined 2% to close at 2.68. Precious metals and their miners gained 2%.

The official GDP announcement came out that the U.S. experienced two consecutive quarters of negative growth — signaling a recessionThe administration denies this is true. In reality, the U.S. economy has been treated by the Fed as needing unprecedented accommodation for fourteen years. It seems a bit disingenuous to claim the U.S. economy is not weak while the Fed maintains negative real interest rates and a 9T balance sheet!

Friday, stocks in Asia, in Europe, and in the U.S. on 10B shares traded.
The S&P 500 Index ended the week above its 4100 benchmark. Apple and IBM closed above 160 and 130 respectively. Precious metals gained 1%.
Now even the Fed’s bogus inflation indicator (based on everything you don’t need) is flashing red.

If you’ve been watching, the Federal Reserve balance sheet is not shrinking as the Fed had said it would. This past week it came in at $8.89T. Here’s an article that attempts to explain why.

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