Summer Crash?

[Old Cowzilla]

I agree totally. Canadian banks should be able to operate at a profit, but regulated to prevent gouging and bad loans.

If people want non profit lenders there are local credit unions and FCC.

Personally because the banks operate as businesses, they are a lot more business friendly than CU or FCC. But each to their own.

Who's getting free stuff from FCC and CREDIT unions. They charge me for anything I want. Most banks could care less about loans ,the big money is in service charges debit cards and credit card fees.

[Austrian Economics]

Rising prices for a host of commodities and assets will do what rising interest rates would have done in a free and transparent capital market.

Rising costs are wringing the profit right out of the manufacturing sector. Businesses cannot afford to upgrade plant and equipment to increase output.

The marginal prospective homebuyer is getting priced out of the housing market. What happens when all those housing tracts are faced with a "no bid" scenario, or a bid that is below cost?

[jazz]

Someone smarter than me please explain why banks need to be for profit?

The same argument will be thrown at why does ag need to be for profit.

I have socialist buddies that think food should be a free public service and a human right.

In a capitalist system, risk is rewarded. Lending to millions of people is hardly risk free.

[bucket]

The same argument will be thrown at why does ag need to be for profit.


In a capitalist system, risk is rewarded.

Rewarded by who? When a company is rewarded by government with grants or subsidies....where is the risk?

Just asking , not an argument,, I think you know where I am going with the question.

As an example so called capitalists like Merit Foods are high on the list of grants. Brandt just received money. Avena foods. Are they capitalists? Brandt had a really good year according to the release.

Are the farmers that get infrastructure and grants gifted to them in the irrigation areas, are they capitalists.

Seems all that are mentioned above are technically socialists.

[errolanderson]

Commodity Price Peak?

Iron Ore Futures slipped 3% following subdued trade data indicating waning Chinese interest in the key steel ingredient. China imported 89.79 tonnes of iron ore in May, down 9% month on month. Tumbling steel prices and smaller profit margins added to the bearish sentiments in the market. Copper now cracking off recent historic highs.

U.S. Treasury yields slipping, now a sign of fading inflation. Pressure on gold straight ahead?

Grains: June swoon?

Crude Oil: Can $70 per barrel hold?

Crypto washout . . . .

Stock market manipulation may be the only glue left . . . .

[jazz]

Stock market manipulation may be the only glue left . . . .

Needs a trigger. Might as well be another variant of covid making the rounds in every country now.

I went to cash in my portfolio for the summer. Marketing all the rest of my crop this month. See where we are in the fall.

[foragefarmer]

Needs a trigger. Might as well be another variant of covid making the rounds in every country now.

I went to cash in my portfolio for the summer. Marketing all the rest of my crop this month. See where we are in the fall.

Go away in May?

Trying to time the market can be costly.

Holding good blue chips is the best way to go.

Never have to worry about jumping in and out.

[wheatking16]

I recently published https://klarenbach.substack.com/p/a-warning-in-bonds A Warning in Bonds? in the Klarenbach Report newsletter.



I believe that bonds often lead the overall market indices.

This analysis proved to be effective last January and February 2020 avoiding the crash.

[errolanderson]

Fed stated today, inflation hotter than they expected and they might have to increase rates two (2) years from now . . . 2023. And the market dumped on rate hike talk 2 years from now. Say what?

The Fed is hooped, the hole is far too deep . . . . They can’t increase rates as there would be an immediate deflationary backlash. And deflation is a central bank nightmare, a financial fire out of control (IMO).

The stock market is now so fearful of any dickerring with free money policy that this statement was enough to dump the market. Group, we are witnessing the bubble of all time bubbles.

Meanwhile in the commodity world, reality is being felt. Gold is now getting smoked (not very inflationary response), copper tumbling and grains, well you can see. Has crude topped?

VIX index oversold and far too complacent given the incoming storm ahead (IMO).

[errolanderson]

Hong Kong stock market dropping. Apparently the 50-day moving average crossed the 100-day. This is called a death cross to traders. A technical warning.

Oil price reversal today?

Toronto real estate bubble may have popped.

Fed aggresively in reverse repo mode, QE being pulled.

This all suggests potential heightened market turbulence heading into late summer (IMO).

[Old Cowzilla]

Average house price in T.O. still a million bucks. Hi-way super busy now and more big birds in the air so oil not dropping any time soon. The effects of the western Canada drought won't likely show up till around Christmas time. People can move more freely so they are partying like it's 1999 !

[wheatking16]

Bonds continue gaining relative to the S&P 500 with the TLT/SPY ratio consolidating above the 50 Day Moving Average.

What does this “smart” money risk-off strategy tell you?

https://klarenbach.substack.com/p/bonds-gaining-interest https://klarenbach.substack.com/p/bonds-gaining-interest

[errolanderson]

Hang Seng indexes (Hong Kong) appear in some form of collapse. Asian VIX volatily indexes rocketed 12 to 15 percent higher overnight.

WTI crude broke below $70 per barrel, loonie tumbling. Dow off solidly overnight. Gold getting slammed. Cryptos wobbly . . . .

China banking concerns surfacing. EU financials?

Rough and tumble Monday shaping up . . . .

[furrowtickler]

You finally might be right
It is mid summer
Hopefully deflation happens in our inputs and machinery.
Going to be hard to put a crop in next year with no crop on many areas and the rampant inflation that has occurred in the ag industry.

[errolanderson]

You finally might be right
It is mid summer
Hopefully deflation happens in our inputs and machinery.
Going to be hard to put a crop in next year with no crop on many areas and the rampant inflation that has occurred in the ag industry.

Believe big three (3) to watch . . . crude oil, equities and real estate (the sitting duck). Also, the steady decline in U.S. treasury yields contributing selling.