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It was not enough, and as the FT reports today, what until now was merely a terrible start to the year has turned absolutely brutal for Odey's European fund, which is now down nearly a third, or 31%, in the first four months of the year, wiping out almost half a decade of trading profits in his flagship hedge fund in less than four months. His more popular EOC MAC Macro Fund did not do much better, and plunged a whopping 24.4% in the month, one of its worst monthly performances in history, pushing the YTD total to -26.8% which is shaping up to be the worst year for Odey since its inception year of 1994.
Betting against the FED's printing press is a loosing proposition. But the article is poignant, it talks of the falling margins the banks are facing from QE. You want inflation and higher interest rates? Up the minimum wage far enough to push prices. The banks need something to loan against. New wages are what we can get. With over capacity you get over production. With over production you get falling prices, and that kills the banks.
We need inflation. Lots of it. Target 10% or 20% annual inflation. With that we can have very high interest rates and restore profitability to the banks.
Betting against the FED's printing press is a loosing proposition. But the article is poignant, it talks of the falling margins the banks are facing from QE. You want inflation and higher interest rates? Up the minimum wage far enough to push prices. The banks need something to loan against. New wages are what we can get. With over capacity you get over production. With over production you get falling prices, and that kills the banks.
We need inflation. Lots of it. Target 10% or 20% annual inflation. With that we can have very high interest rates and restore profitability to the banks.
They are taking care of that as well but not with MW.
They decided to prop up commodities to create inflation.
meh, perma-longs are right until they are wrong. And when they are wrong, it gets ugly...FAST.
Personally, I dont play the market, I invest in sound funds/stocks and diversify, but the way the fed is printing money and keeping interest rates this low artificially is UNPRECEDENTED. Do you think it will last forever? The same people saying "dont fight the fed. I've been right for 6 years!!" were the same ones claiming real estate never "went down", except when it did they lost their a&& and then some.
meh, perma-longs are right until they are wrong. And when they are wrong, it gets ugly...FAST.
Personally, I dont play the market, I invest in sound funds/stocks and diversify, but the way the fed is printing money and keeping interest rates this low artificially is UNPRECEDENTED. Do you think it will last forever? The same people saying "dont fight the fed. I've been right for 6 years!!" were the same ones claiming real estate never "went down", except when it did they lost their a&& and then some.
What will you do when low rates arent able to prop-up bad economies anymore?
Negative interest rates.
Or, basically, a complete economic meltdown.
Our economy has been slowly twirling around the porcelain throne for quite some time. Negative rates will cause Nemo to finally make his way down to the sewer system.
What will you do when low rates arent able to prop-up bad economies anymore?
Japan is upping their minimum wage % each year. Up our to $15hr and then a % each year after and that would get us growth.
Also getting US minimum wage to apply to a labor performed for the US market.
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