Economist’s “News and Views” Friday 9-15-2023

16/09/2023

Danielle DiMartino Booth: ‘Perfect Storm’ Dead Ahead For Markets. Get Your Money To Safety

9-15-2023

Up until recently, runaway inflation was all anyone could talk about. Suddenly, now everyone is fixating on the surge in bond yields, worried that they’ll continue moving even higher.

Have we made a permanent shift to an era of higher cost of capital that will constrain economic growth? Or is this spike in yields a transitory one?

And those hoping for a Fed pivot & a return to lower interest rates finally get their wish?

For answers, we’re fortunate to sit down with Danielle DiMartino Booth, CEO & Chief Strategist for Quill Intelligence. She was a former advisor to the Dallas Federal Reserve during the great financial crisis, working with Richard Fisher, and she’s author of the book Fed Up.

TIMESTAMPS

0:00 The perfect storm of bankruptcies.

1:23 Introduction.

10:23 What is causing the sudden move higher in bond yields?

14:08 Other factors that contributed to treasury buyers getting spooked.

19:55 Employee retention credit and the perfect storm.

26:26 A stealth stimulus that has gone into the pockets of the top 20%.

31:30 Risk of a Fed pivot in 2024.

36:16 The difference between corporate bonds and government bonds.

41:17 The shadow inventory in the real estate market.

46:28 How do you expect the financial markets to react?

51:47 Actionable ideas in this environment.

56:21 What to expect at the conference?

https://youtube.com/watch?v=k0IpMnxOUQI%3Ffeature%3Doembed%26enablejsapi%3D1

Visa And Mastercard Warn Of A Credit Card Crisis NO ONE Is Talking About

Atlantis Report: 9-15-2023

Visa and MasterCard have recently announced an increase in credit card fees, a move that has significant implications for both consumers and merchants.

These two global payment technology giants are set to implement this within the next 30 days, and this decision is expected to impact a wide range of financial aspects in the United States.

Customers will face increased costs when using cards for their purchases.

These higher costs add to the economic burden of individuals who rely on these payment methods for everyday expenses, which will result in larger monthly credit card bills.