7 days ago
Federal Reserve Chair Kevin Warsh has revealed himself. If not a card-carrying monetarist, he is at least a camp follower. This represents a dramatic change at the Fed, where the past Chairman Jerome Powell repeatedly rejected the basic tenets of monetarism.
This is a welcomed earthquake. After all, there are almost no monetarists left in the world (except for us, and we've been fighting a lonely rearguard action for over 40 years). The Federal Reserve has rejected monetarism consistently — and on the record — because it preferred other models for understanding the economy. In academia, monetarism has been out of fashion for decades. But by his own words, a monetarist is now leading the central bank.
Just what is monetarism? It's a doctrine which holds that money has a major influence on both the level of ***** et prices, economic activity, and the price level. Any discussion of national income determination must, therefore, center on the quantity of money and the banking system, since banks produce most of the money in modern economies. When it comes to monetary policy, its objectives are best met by targeting the rate of growth of the money supply.
Today, most economists pooh-pooh monetarism. Money and banking are nowhere to be found in their macroeconomic models, or their discourses about the course of ***** et prices, economic activity, and prices. Indeed, their forecasting exercises are typically based on elaborations of Keynesian income-expenditure models that exclude money and banking.
If that's not enough, we think that the Fed's backroom staff, mostly Keynesian-leaning Democrats, don't want alignment with a philosophy usually affiliated with Milton Friedman, but that's another story. Just look at what Joe Biden said in 2020 about how the dean of monetarism wasn't "running the show anymore."
#monetarist
This is a welcomed earthquake. After all, there are almost no monetarists left in the world (except for us, and we've been fighting a lonely rearguard action for over 40 years). The Federal Reserve has rejected monetarism consistently — and on the record — because it preferred other models for understanding the economy. In academia, monetarism has been out of fashion for decades. But by his own words, a monetarist is now leading the central bank.
Just what is monetarism? It's a doctrine which holds that money has a major influence on both the level of ***** et prices, economic activity, and the price level. Any discussion of national income determination must, therefore, center on the quantity of money and the banking system, since banks produce most of the money in modern economies. When it comes to monetary policy, its objectives are best met by targeting the rate of growth of the money supply.
Today, most economists pooh-pooh monetarism. Money and banking are nowhere to be found in their macroeconomic models, or their discourses about the course of ***** et prices, economic activity, and prices. Indeed, their forecasting exercises are typically based on elaborations of Keynesian income-expenditure models that exclude money and banking.
If that's not enough, we think that the Fed's backroom staff, mostly Keynesian-leaning Democrats, don't want alignment with a philosophy usually affiliated with Milton Friedman, but that's another story. Just look at what Joe Biden said in 2020 about how the dean of monetarism wasn't "running the show anymore."
#monetarist
7 days ago
At the start of September, the global network of transportation partners that retail giant Amazon relies upon to process an average of between 15 and 17.2 million delivery orders per day was suddenly thrust into public attention.
A cargo plane operated by 21 Air ran off the runway at Miami International in a major accident that killed five people traveling in a van on a nearby road.
Since the Sept. 6 crash, Amazon suspended its operations with 21 Air, pending an ongoing investigation by the National Transportation Safety Board (NTSB). The retail platform said it made the choice after it "spent time supporting the investigation and reviewing some of the surrounding circumstances."
While operating with an unblemished safety record, another of Amazon's network of thousands of transportation partners ended up in the limelight this week when it filed for Chapter 11 protection in a Florida court, Tampa Bay Business Journal reported.
Launched out of Winter Haven in Polk County in 2005, CLJ Transporting is a cargo carrier and dedicated Amazon Freight Partner that had been running deliveries for Amazon within a 200-mile radius of Davenport in the central part of the state for more than a decade.
#amazon #network
A cargo plane operated by 21 Air ran off the runway at Miami International in a major accident that killed five people traveling in a van on a nearby road.
Since the Sept. 6 crash, Amazon suspended its operations with 21 Air, pending an ongoing investigation by the National Transportation Safety Board (NTSB). The retail platform said it made the choice after it "spent time supporting the investigation and reviewing some of the surrounding circumstances."
While operating with an unblemished safety record, another of Amazon's network of thousands of transportation partners ended up in the limelight this week when it filed for Chapter 11 protection in a Florida court, Tampa Bay Business Journal reported.
Launched out of Winter Haven in Polk County in 2005, CLJ Transporting is a cargo carrier and dedicated Amazon Freight Partner that had been running deliveries for Amazon within a 200-mile radius of Davenport in the central part of the state for more than a decade.
#amazon #network
9 days ago
Stocks slid Wednesday afternoon after Federal Reserve Chair Kevin Warsh followed the central bank's first rate hike in three years with a press conference that hinted it wouldn't be the last.
The S&P 500 dropped 1%, heading toward its lowest close since July. The Dow Jones Industrial Average fell 1.7%, or more than 700 points, with financial shares leading the decline. The Nasdaq Composite fell 0.8%. The 10-year Treasury yield held near 5% a day after touching its highest level since 2007, and the dollar index climbed 0.6% to its strongest since late July.
Markets had priced in the quarter-point increase itself and initially took it in stride. All three indexes were higher before the 2 p.m. decision. The selling started during the press conference.
Warsh was on a tightrope going in. The question was whether he'd frame the hike as a one-off adjustment—which risked the bond market reading it as too little to deter inflation—or as the start of a longer cycle. He did neither, and instead went in a more hawkish direction. "I would be hard pressed to describe broad financial conditions as restrictive," he said in his opening remarks. "This view was widely shared by the committee, so we removed a dose of accommodation."
That's a new way of describing a rate hike, and one investors aren't used to. Under his predecessor, Jerome Powell, the Fed called policy "modestly restrictive," meaning rates were already high enough to slow the economy. Warsh was saying that at 3.5%–3.75%, they weren't—and by implication, one quarter point may not have gotten them there either. Asked directly, he declined to say whether policy is restrictive now.
#hike #press
The S&P 500 dropped 1%, heading toward its lowest close since July. The Dow Jones Industrial Average fell 1.7%, or more than 700 points, with financial shares leading the decline. The Nasdaq Composite fell 0.8%. The 10-year Treasury yield held near 5% a day after touching its highest level since 2007, and the dollar index climbed 0.6% to its strongest since late July.
Markets had priced in the quarter-point increase itself and initially took it in stride. All three indexes were higher before the 2 p.m. decision. The selling started during the press conference.
Warsh was on a tightrope going in. The question was whether he'd frame the hike as a one-off adjustment—which risked the bond market reading it as too little to deter inflation—or as the start of a longer cycle. He did neither, and instead went in a more hawkish direction. "I would be hard pressed to describe broad financial conditions as restrictive," he said in his opening remarks. "This view was widely shared by the committee, so we removed a dose of accommodation."
That's a new way of describing a rate hike, and one investors aren't used to. Under his predecessor, Jerome Powell, the Fed called policy "modestly restrictive," meaning rates were already high enough to slow the economy. Warsh was saying that at 3.5%–3.75%, they weren't—and by implication, one quarter point may not have gotten them there either. Asked directly, he declined to say whether policy is restrictive now.
#hike #press
10 days ago
CRDO reported $236M in adjusted profit, but stock-comp add-backs and a $62M inventory build shrunk free cash flow to just $83M.
Shares fell 42% in one month to $150, while 18 of 19 ***** ysts maintain Buy ratings with a $281 consensus target.
Top two customers represent 33% and 28% of revenue, meaning a single push-out could flip Credo's inventory build into a demand shortfall.
Just released. Our ***** ysts combed the entire stock market and named the ten best stocks to buy right now, and Credo Technology Group didn't make the cut. Enter your email to see the names that beat CRDO. The report is free. Enter your email and see if any of your stocks made the cut.
Credo (NASDAQ:CRDO) closed its fiscal first quarter with $236.3 million in adjusted profit and $82.9 million in free cash flow, and the stock has moved as if investors noticed. Shares last traded at $150.39, down 42.14% over the past month, while the Wall Street consensus price target sits at $281.47. That leaves a wide spread between where the market is pricing the AI connectivity chipmaker and where the sell side thinks it belongs.
#crdo #shares #inventory
Shares fell 42% in one month to $150, while 18 of 19 ***** ysts maintain Buy ratings with a $281 consensus target.
Top two customers represent 33% and 28% of revenue, meaning a single push-out could flip Credo's inventory build into a demand shortfall.
Just released. Our ***** ysts combed the entire stock market and named the ten best stocks to buy right now, and Credo Technology Group didn't make the cut. Enter your email to see the names that beat CRDO. The report is free. Enter your email and see if any of your stocks made the cut.
Credo (NASDAQ:CRDO) closed its fiscal first quarter with $236.3 million in adjusted profit and $82.9 million in free cash flow, and the stock has moved as if investors noticed. Shares last traded at $150.39, down 42.14% over the past month, while the Wall Street consensus price target sits at $281.47. That leaves a wide spread between where the market is pricing the AI connectivity chipmaker and where the sell side thinks it belongs.
#crdo #shares #inventory
25 days ago
By Jonathan Stempel
Aug 31 (Reuters) - A U.S. judge said the former parent of Silicon Valley Bank cannot pursue a $1.71 billion claim against the FDIC stemming from the bank's March 2023 collapse, one of the largest U.S. bank failures.
In a 206-page decision on Friday, U.S. District Judge Beth Labson Freeman in San Jose, California, held that a trust that took over the parent's claims was responsible for former executives' ill-fated decisions to try boosting profit by investing heavily in long-term government bonds and mortgage-backed securities.
Silicon Valley Bank collapsed after rising interest rates caused at least $4.52 billion of losses in the bank's investment portfolio, sparking a bank run that disrupted many technology startups whose deposits it held.
Most of the bank's deposits were uninsured. The bank's demise presaged the collapses of two other large lenders in 2023, Signature Bank and First Republic Bank.
#former #deposits
Aug 31 (Reuters) - A U.S. judge said the former parent of Silicon Valley Bank cannot pursue a $1.71 billion claim against the FDIC stemming from the bank's March 2023 collapse, one of the largest U.S. bank failures.
In a 206-page decision on Friday, U.S. District Judge Beth Labson Freeman in San Jose, California, held that a trust that took over the parent's claims was responsible for former executives' ill-fated decisions to try boosting profit by investing heavily in long-term government bonds and mortgage-backed securities.
Silicon Valley Bank collapsed after rising interest rates caused at least $4.52 billion of losses in the bank's investment portfolio, sparking a bank run that disrupted many technology startups whose deposits it held.
Most of the bank's deposits were uninsured. The bank's demise presaged the collapses of two other large lenders in 2023, Signature Bank and First Republic Bank.
#former #deposits
25 days ago
Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure.
Why we like it: The Wells Fargo Active Cash hits the right notes on multiple fronts, including no annual fee, a straightforward rewards rate, and multiple intro APR offers. This can easily be the one card you carry in your wallet if you like to travel light.
Why we like it: The Wells Fargo Reflect provides multiple long introductory APR offers, giving you the opportunity to finance an upcoming large purchase or help pay down debt without worrying about interest during the offer period. It doesn't provide many other benefits, but that's okay because its main focus is on the 0% intro APR offers.
#fargo #intro #disclosure
Why we like it: The Wells Fargo Active Cash hits the right notes on multiple fronts, including no annual fee, a straightforward rewards rate, and multiple intro APR offers. This can easily be the one card you carry in your wallet if you like to travel light.
Why we like it: The Wells Fargo Reflect provides multiple long introductory APR offers, giving you the opportunity to finance an upcoming large purchase or help pay down debt without worrying about interest during the offer period. It doesn't provide many other benefits, but that's okay because its main focus is on the 0% intro APR offers.
#fargo #intro #disclosure
1 month ago
A stock can look very different six months after purchase, especially when its price has fallen way below the original entry point.
Most investors hold on, waiting for the price to recover rather than locking in a loss. A pattern one of the most successful investors alive says causes lasting financial damage.
In his 2024 letter to Berkshire Hathaway shareholders, Warren Buffett identified a behavioral pattern he called "the cardinal sin" of managing a business.
His late partner, Charlie Munger, had a blunter label for the habit of sitting on known problems and hoping they disappear on their own: "thumb-sucking."
Buffett's candor in the 2024 Berkshire Hathaway annual letter went beyond a single line about thumb-sucking.
#sucking
Most investors hold on, waiting for the price to recover rather than locking in a loss. A pattern one of the most successful investors alive says causes lasting financial damage.
In his 2024 letter to Berkshire Hathaway shareholders, Warren Buffett identified a behavioral pattern he called "the cardinal sin" of managing a business.
His late partner, Charlie Munger, had a blunter label for the habit of sitting on known problems and hoping they disappear on their own: "thumb-sucking."
Buffett's candor in the 2024 Berkshire Hathaway annual letter went beyond a single line about thumb-sucking.
#sucking
1 month ago
By David Lawder and Tatiana Bautzer
WASHINGTON/NEW YORK, Aug 19 (Reuters) - The U.S. Treasury announced on Wednesday support measures for long-duration bonds, stepping in to staunch, at least temporarily, an upward march in yields that had unnerved global investors.
The move to double buyback sizes for long-duration debt came after a major bond selloff pushed the 30-year Treasury yield to its highest level since 2007 amid worries of an imminent escalation in the U.S.-Israeli war with Iran and rising concerns over a deteriorating U.S. fiscal picture. Higher bond yields push up borrowing costs, squeezing households, companies, financial markets and the federal budget alike. Total public debt outstanding topped the $40 trillion mark on Wednesday.
"I think that this will have a huge impact on the long end," said Dan Gottlander, global head of USD and CAD swaps trading at Citi, although he added that the move might prompt the U.S. Treasury to issue more short-term debt instead.
"It does not change deficits, obviously, and if you are going to buy back the long end, you still will need to issue," said Gottlander. "They may issue more bills, or also in the five-year to 10-year sector."
#debt #yields #global
WASHINGTON/NEW YORK, Aug 19 (Reuters) - The U.S. Treasury announced on Wednesday support measures for long-duration bonds, stepping in to staunch, at least temporarily, an upward march in yields that had unnerved global investors.
The move to double buyback sizes for long-duration debt came after a major bond selloff pushed the 30-year Treasury yield to its highest level since 2007 amid worries of an imminent escalation in the U.S.-Israeli war with Iran and rising concerns over a deteriorating U.S. fiscal picture. Higher bond yields push up borrowing costs, squeezing households, companies, financial markets and the federal budget alike. Total public debt outstanding topped the $40 trillion mark on Wednesday.
"I think that this will have a huge impact on the long end," said Dan Gottlander, global head of USD and CAD swaps trading at Citi, although he added that the move might prompt the U.S. Treasury to issue more short-term debt instead.
"It does not change deficits, obviously, and if you are going to buy back the long end, you still will need to issue," said Gottlander. "They may issue more bills, or also in the five-year to 10-year sector."
#debt #yields #global
1 month ago
Taiwan Semiconductor (NYSE: TSM) is one of the most widely held AI chip stocks among elite hedge funds and billionaire investors, the latest 13F filings for the second quarter show.
Insider Monkey data shows TSM appeared in 250 hedge fund portfolios by the end of the second quarter, sharply up from 236 in the first quarter. Fisher ***** et Management, run by Ken Fisher, is the largest holder with 18,866,198 shares worth $9,009,930,721, making up 2.68% of the fund's portfolio. Fisher added 2% to the position last quarter. Coatue Management, run by Philippe Laffont, holds 8,914,995 shares worth $4,257,534,162, or 8.76% of the fund's portfolio. Coatue trimmed the position by 4%. Tiger Global Management holds 4,881,008 shares of the company.
ARK Investment Management of Cathie Wood holds 482,286 shares worth $230,325,325, or 1.5% of the fund's portfolio. ARK cut the position sharply, down 24%.
Third Point, run by Dan Loeb, holds 460,000 shares worth $219,682,200, making up 4.69% of the fund's portfolio, after adding 68%.
Stanley Druckenmiller's Duquesne Capital holds TSM as its second-largest position, with 589,680 shares worth $281,613,000, or 5.4% of the fund's portfolio. Druckenmiller increased the position by 20% last quarter. Duquesne's total portfolio value stood at $5,210,860,000, up 1.54% for the quarter.
#quarter #holds
Insider Monkey data shows TSM appeared in 250 hedge fund portfolios by the end of the second quarter, sharply up from 236 in the first quarter. Fisher ***** et Management, run by Ken Fisher, is the largest holder with 18,866,198 shares worth $9,009,930,721, making up 2.68% of the fund's portfolio. Fisher added 2% to the position last quarter. Coatue Management, run by Philippe Laffont, holds 8,914,995 shares worth $4,257,534,162, or 8.76% of the fund's portfolio. Coatue trimmed the position by 4%. Tiger Global Management holds 4,881,008 shares of the company.
ARK Investment Management of Cathie Wood holds 482,286 shares worth $230,325,325, or 1.5% of the fund's portfolio. ARK cut the position sharply, down 24%.
Third Point, run by Dan Loeb, holds 460,000 shares worth $219,682,200, making up 4.69% of the fund's portfolio, after adding 68%.
Stanley Druckenmiller's Duquesne Capital holds TSM as its second-largest position, with 589,680 shares worth $281,613,000, or 5.4% of the fund's portfolio. Druckenmiller increased the position by 20% last quarter. Duquesne's total portfolio value stood at $5,210,860,000, up 1.54% for the quarter.
#quarter #holds
1 month ago
AuKing Mining has signed a binding agreement to acquire all issued shares in Green Exploration, the Malawian subsidiary of Tusker Minerals, in a transaction valued at up to approximately A$4.85m ($3.4m).
The deal will see AuKing take control of several sites including the Machinga Rare Earth Elements Project (EPL 0529 and EPL 0705), as well as the Ngala Hill, Salambidwe and Karonga projects in Malawi.
Under the terms agreed between the two Australian-listed companies, Tusker Minerals will retain beneficial ownership of the Mzimba rutile project, which is scheduled for transfer out of Green Exploration following completion of the sale.
This arrangement replaces a previous agreement between the parties that focused solely on the Machinga Project.
The Machinga site is located within the extensive Chilwa Alkaline Province, which cuts through Proterozoic rocks including gneisses, granulites and amphibolites.
#machinga #project #mining
The deal will see AuKing take control of several sites including the Machinga Rare Earth Elements Project (EPL 0529 and EPL 0705), as well as the Ngala Hill, Salambidwe and Karonga projects in Malawi.
Under the terms agreed between the two Australian-listed companies, Tusker Minerals will retain beneficial ownership of the Mzimba rutile project, which is scheduled for transfer out of Green Exploration following completion of the sale.
This arrangement replaces a previous agreement between the parties that focused solely on the Machinga Project.
The Machinga site is located within the extensive Chilwa Alkaline Province, which cuts through Proterozoic rocks including gneisses, granulites and amphibolites.
#machinga #project #mining
1 month ago
Midland, Texas-based Diamondback Energy, Inc. (FANG), with a market capitalization of approximately $56.5 billion, is an independent oil and natural gas company focused on exploring, developing, and producing hydrocarbons in the Permian Basin. It also operates crude oil and natural gas gathering infrastructure through its subsidiary, Rattler Midstream.
Shares of this leading oil and gas company have significantly outperformed the broader market over the past year. FANG has climbed 45% over this period, compared with a 20.2% gain for the broader S&P 500 Index ($SPX). The stock has continued to outperform the index in 2026, gaining 33.6%, surpassing the index's 13.2% gain over the same period.
A $20 Billion Reason Why Intel Stock Is in Focus
Marvell Technology (MRVL) Stock Might Offer a Quick Bounce Before Earnings
Most **** ysts Still Aren't Bullish on Tesla Stock, Even After Recent Selloff. Here's Why.
#fang #market #gain
Shares of this leading oil and gas company have significantly outperformed the broader market over the past year. FANG has climbed 45% over this period, compared with a 20.2% gain for the broader S&P 500 Index ($SPX). The stock has continued to outperform the index in 2026, gaining 33.6%, surpassing the index's 13.2% gain over the same period.
A $20 Billion Reason Why Intel Stock Is in Focus
Marvell Technology (MRVL) Stock Might Offer a Quick Bounce Before Earnings
Most **** ysts Still Aren't Bullish on Tesla Stock, Even After Recent Selloff. Here's Why.
#fang #market #gain
2 months ago
US stocks were muted on Wednesday as investors ***** sed easing inflation data, which is likely to keep Federal Reserve officials divided on whether to raise interest rates.
The Dow Jones Industrial Average (^DJI) wavered near the flat line while the S&P 500 (^GSPC) edged up 0.2%. The Nasdaq Composite (^IXIC) rose 0.3% in what is a relatively quiet week in markets beyond the tail end of earnings season.
The Consumer Price Index print showed inflation continued to cool in July to a 3.4% annual rate, matching economists' expectations and easing from June's 3.5% increase. On a monthly basis, inflation rose 0.1% from June.
Despite a slight pullback, inflation remains stubbornly above the Fed's 2% target, complicating central bankers' next decision to hold or hike rates in September. Following Wednesday's inflation data, traders tilted their bets toward the Fed holding rates steady after a roughly 50-50 split the day before.
Ongoing tensions in the Middle East serve as the backdrop propping up inflation and Treasury yields as the US and Iran remain deadlocked in negotiations to reopen the Strait of Hormuz. The US enforced its blockade of the strait by firing on a Panama-flagged ship attempting to cross the Gulf of Oman on Tuesday, lifting Brent crude futures (BZ=F) close to $90 per barrel.
#inflation #rates #reserve
The Dow Jones Industrial Average (^DJI) wavered near the flat line while the S&P 500 (^GSPC) edged up 0.2%. The Nasdaq Composite (^IXIC) rose 0.3% in what is a relatively quiet week in markets beyond the tail end of earnings season.
The Consumer Price Index print showed inflation continued to cool in July to a 3.4% annual rate, matching economists' expectations and easing from June's 3.5% increase. On a monthly basis, inflation rose 0.1% from June.
Despite a slight pullback, inflation remains stubbornly above the Fed's 2% target, complicating central bankers' next decision to hold or hike rates in September. Following Wednesday's inflation data, traders tilted their bets toward the Fed holding rates steady after a roughly 50-50 split the day before.
Ongoing tensions in the Middle East serve as the backdrop propping up inflation and Treasury yields as the US and Iran remain deadlocked in negotiations to reopen the Strait of Hormuz. The US enforced its blockade of the strait by firing on a Panama-flagged ship attempting to cross the Gulf of Oman on Tuesday, lifting Brent crude futures (BZ=F) close to $90 per barrel.
#inflation #rates #reserve
