From Bloomberg:
As the stock market gives signs of topping out, banks earnings are starting to decline.
The new home mortgage market is critical to "the Recovery" for the Janet Yellen Federal Reserve.
Is it any surprise that dovish comments recently came from the FOMC minutes?
The recovery from the financial crisis is 5 years in the making, and these are the kinds to numbers we see.
This hardly is reassuring that Central Banks have the economy under control.
The true issue, is that governments can't allow deflationary forces to develop in world dominated by constant, chronic credit growth.
They need more and more leverage to fulfill the impossible promises made to voters of the socialist nanny state.
How else will pensioners be paid if tax revenues do not grow since there is no federal saving fund?
Soon the great currency reset will be upon us, whether it is a year from now or five years, who can know?
But what we do know is this - when the leverage comes out of this fiat currency system - the unwinding will be spectacular - and terrifying for many.
And soon we will know what is true, and what is false.
My view:Weak demand for home loans continued to drag on results at Wells Fargo & Co. (WFC) and JPMorgan Chase & Co. (JPM) as the two largest U.S. mortgage lenders grappled for pieces of a shrunken market.Even as interest rates hovered at historically low levels, new home loans tumbled 67 percent to $36 billion at San Francisco-based Wells Fargo, the biggest originator. JPMorgan posted a 68 percent drop to$17 billion, and the bank predicted it would lose money on mortgage production for the full year.Both lenders are paring staff to keep expenses in line with demand for loans, which has waned as investors and cash buyers dominate sales. New York-based JPMorgan said jobs at its mortgage business declined 14,000, or 30 percent, since the start of last year. Wells Fargo set plans to cut 1,100 positions in the most recent three months, which ranked as its worst first quarter for mortgage revenue since 2008.
As the stock market gives signs of topping out, banks earnings are starting to decline.
The new home mortgage market is critical to "the Recovery" for the Janet Yellen Federal Reserve.
Is it any surprise that dovish comments recently came from the FOMC minutes?
The recovery from the financial crisis is 5 years in the making, and these are the kinds to numbers we see.
This hardly is reassuring that Central Banks have the economy under control.
The true issue, is that governments can't allow deflationary forces to develop in world dominated by constant, chronic credit growth.
They need more and more leverage to fulfill the impossible promises made to voters of the socialist nanny state.
How else will pensioners be paid if tax revenues do not grow since there is no federal saving fund?
Soon the great currency reset will be upon us, whether it is a year from now or five years, who can know?
But what we do know is this - when the leverage comes out of this fiat currency system - the unwinding will be spectacular - and terrifying for many.
And soon we will know what is true, and what is false.
"And soon we will know what is true, and what is false."
ReplyDeleteEspecially when is comes to Value PW...great post.