Macro Afternoon: 2 May 2022








Brent Crude


West Texas Intermediate


S&P 500





      • Despite defending the yield and buying as many 10 year bonds as possible, the yield is still at the top of the range and it has taken a massive toll on the Yen. The Yen has moved down faster than almost ever, and every day it gets harder and harder to keep this game up. They will have to choose one or the other – rates or the currency. Which will fail first?
        The Japanese Yen is Collapsing –

    • The Travelling PhantomMEMBER

      Absolutely nothing…I really started to tend to become nihilistic especially when it comes to governments

    • As a Cam Murray cross post pointed out, if it’s such a good idea for the gig to have a ten or thirty percent stake in housing why not a 100% stake?

      None of what we are seeing is about true affordability, it’s all about keeping the bubble going. If it takes the Gov ponying up a portion of the deposit then the Gov will be the bank of mum and dad to keep prices high.

      They’ll back the banks to lend to people who can’t reasonably meet their repayments and have money left over for necessities.

      They’ll influence the states to lower planning and regulatory standards so that builders and developers can pump out junk and line their pockets.

      And if all still ends up going t1ts up, they’ll help out those who are apparently the business peeps that say “let the market decide” and toss those in need under the bus.

      Until we decide to leave the last 30 plus years of political-economic thinking behind we’ll just be junkies going back for another housing hit. The high will never be as good yet the lows will keep getting lower.

        • What about this one!!!
          Not that our pollies care.

          A country’s real “wealth” is just the value of goods and services it is able to produce. That is why if housing prices soar without a concomitant soaring in the economy’s productivity, the country hasn’t actually gotten any wealthier.

          • LSWCHPMEMBER

            We’re all getting poorer. Wages have stagnated while costs have outpaced them…particularly in housing…for decades.

            My Dad as a mid level public servant was able to buy a 1200 sq m block of land in Canberra in the mid 70s for about 9 months salary (approx $10K). Today, a mid level public servant could buy a “generous” (lol) 600 sq m block for about 6 years salary (approx $450K) which is absurd.

            Nobody who has housing “wealth” is as rich as they think they are. It’s all turning to rust and ashes in our mouths.

          • Isn’t most wealth illusionary? I mean if you own productive business that’s 1 thing. But assets in general all have some issue with them. In the case of Aussie housing it’s usually an all eggs in 1 basket issue I have with it.

        • I’m slowly making my way through Trade Wars are Class Wars. It’s worth the investment of time. Pettis and Klein lay out everything out and give examples from across the world and across the last few hundred years.

          He’s playing 4D chess where most are impressed by their little tic tac toe games. Unfortunately we end up getting the tic tac toe version and it becomes lore.

          One understands why, it’s just a shame when Pettis then goes and does it all in tweets as well thus showing that these ideas can be put across in a succinct and accessible way.

    • GarethMEMBER

      The author should do some research on what women demand from men on those apps. He will need a pen and several pages of paper for the list. For men to want anything of women though, how dare they. Women are pure and sacred beings who can do no wrong and should be given the benefit of the doubt, always. All emotional trauma and baggage should be ignored (Sarc).

      What a knob.

      • I thought it was quite funny, the ABC reposted it on their site yesterday. There is a lot I could say about it, but I think the comments section kind of sums it up.