NIRP-ing the Metals, Sell the Banks

I saw more “hawky” jawboning this week from the fruits at the fed as well as pundits and economists.  As a result gold and metals took a one day tumble, but have since rallied back.

Some tried to put June in play for a fed increase, but fed funds say December. We’ll see. With tepid, muted, non-existent growth I actually wouldn’t be surprised if we start NIRP-ing ourselves before its ll over.

The NIRP doesn’t work, but since when did the fed embrace something that made comment sense?

The NIRP is supposed to bring on inflation, but its actually having the opposite affect. See Japan, or better yet, take a peek at Europe. Negative rates are killing the banks. This will get on the front page soon enough. Right now it hides on page 15.

Euro bank index


The Kardashians have a better shot of making it to Final Jeopardy than this not ending in tears at some point.

In the meantime, the metals should continue to work, financials not so much.  Banks can’t prop trade a Christmas Club account.  No profit center anymore.

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