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Week in Review: 19-22 December 2022 - Merry Christmas

Summary:

    Argentina won the Football World Cup 2022. (Source: The New York Times)

    Former FTX CEO Sam Bankman-Fried went to jail in the Bahamas and then was extradited to the US. (Source: The Guardian)

    CFPB ordered Wells Fargo to Pay $3.7 Billion for widespread Mismanagement of auto loans, mortgages, and deposit accounts (Source: Consumer Financial Protection Bureau)

    Elon Musk has polled the Twitter universe again and the voters told him it's time to leave! (Source: CNN)

    After days in the red, the stock markets had a couple of green days, but on Thursday a big RED day, after "too positive" economic news regarding GDP growth.

    The US economy grew an annualized 3.2% on quarter in Q3 2022, better than 2.9% in the second estimate, and rebounding from two straight quarters of contraction. Consumer spending rose more than anticipated (2.3% vs 1.7% in the second estimate), as growth in health care and "other" services partially offset a decrease in spending on goods, namely motor vehicles and food and beverages.

Enjoy the holidays!

Economic data source: Trading Economics


Housing is Getting Too Expensive for Ordinary People

No Shit! That's Ooooold News!

This podcast is a bit naive. It's time for everybody to learn the tax laws and take advantage of them! Companies want to minimize the taxes they pay, like everybody, preferably legally, taking advantage of loopholes and tax benefits. Don't just complain. Learn, invest, take care of yourself. Don't trust the government or anybody.

Podcast: Investigate Europe


The Economy

Video: Should You Be Worried About DEFLATION? Yes...Here's Why

Channel: George Gammon



Recession Deep Dive

Video: Hugh Hendry LIVE (Recession 2023 Deep Dive)

Channel: Rebel Capitalist



Did 2022 Mark the End of the Crypto Miracles?

Looking at Microstrategy, it looks like a miracle. You take an unprofitable company, start buying bitcoin, and suddenly the company is growing together with the cryptocurrency/bitcoin bubble! Like in many other cases, problems may appear when the bubble bursts...

Video: George Gammon/Doomberg vs. Michael Saylor LIVE (Bitcoin/MicroStrategy Debate)

Channel: Rebel Capitalist


 

 

Learning About Austrian Economics

Great reading suggestions so that people can get properly educated about different perspectives and economic theories.

Video: George Gammon is WRONG!

Channel: Finance Uncut


 

A Walk Around the Markets

 
OIL
 
 
WTI crude futures pared gains to trade below $78 per barrel on Thursday, snapping a three-day winning streak pressured by a firmer dollar following robust US data. Nevertheless, the oil market has been performing well since late last week, as an expected surge in travel for the holiday season is threatening to exacerbate tightening US energy supplies. Latest data showed that US crude inventories fell by 5.89 million barrels last week, much more than market forecasts for a 1.66 million barrel drop. US distillate stocks, which include heating oil and jet fuel, also declined, defying expectations for a build. Oil prices were also supported by an improving demand outlook in top crude importer China, as the country appeared intent on ending its strict zero-Covid policy and delivering more pro-growth measures centered on reviving consumption.





Natural Gas
 

US natural gas futures fell to below $5.3/MMBtu on Thursday, the lowest in nine months after the latest EIA report showed a smaller-than-expected storage draw. US utilities pulled 87 bcf of gas from storage last week, below market expectations of a 93 bcf drop and well below a five-year (2017-2021) average decline of 124 bcf as milder weather kept heating demand low and lots of wind power reduced the number of gas generators needed to produce electricity. Natural gas prices in the US have been subdued amid forecasts for warmer than previously expected weather in late December and early January. Meanwhile, the Freeport LNG export plant in Texas, forced to go offline in June following a fire, expects to bring operations back online by the end of the year, with Refinitiv data showing that the plant was receiving natural gas this week. There are however still many doubts, as the company still has a lot of work to do to satisfy federal regulators before the plant is ready to restart.
 




 
US Stock Markets
 

US stocks traded sharply lower on Thursday, with the Dow Jones losing nearly 550 points, the S&P 500 falling 2% and the Nasdaq down 3%, as strong economic data raised concerns that further monetary tightening would be necessary. The final estimate for GDP growth showed the US economy expanded 3.2% in Q3, higher than 2.9% in the second release. At the same time, the claims report continued to point to a healthy labor market. On the corporate front, shares of Micron Technology fell nearly 3% after the company forecasted a bigger-than-expected loss for the current period. On Wednesday, the three major averages booked a strong 1.5% gain, but the rebound proved to be short-lived. So far this month, the Dow is down nearly 4%, the S&P 500 over 6% and the Nasdaq around 8%.


 
Bitcoin
 

Bitcoin US Dollar traded at 16659 this Thursday December 22nd, decreasing 132 or 0.79 percent since the previous trading session. Looking back, over the last four weeks, Bitcoin lost 1.16 percent. Over the last 12 months, its price fell by 67.22 percent. Looking ahead, we forecast Bitcoin US Dollar to be priced at 15120 by the end of this quarter and at 11222 in one year, according to Trading Economics global macro models projections and analysts expectations.
 



 
Gold
 
 
Gold prices sank 1% to below $1800 an ounce on Thursday, prompted by a dollar rally after an upward GDP revision for the US raised prospects the Fed will eventually need to tight monetary policy further and keep rates elevated for a longer period of time. Despite the fall on Thursday, the bullion is on track to end the December month nearly 1.5% higher.
 



 
Silver
 

Silver futures rose past $24 per ounce in late December, the highest in eight months and set to close the year 3% higher, supported by a lower dollar and looming supply concerns. Bullion assets rallied enough to be on course to book yearly gains after the Bank of Japan increased the upper limit for 10-year bond yields, pressuring the greenback. Shortage fears also supported prices, as New York’s COMEX inventories fell 70% in the last 18 months to just over 1 million tonnes. Also, the London Bullion Market Association stockpiles fell for the 10th straight month to a record-low 27.1 thousand tonnes in November. Still, worries of lower industrial demand capped silver’s rebound as pledges of higher borrowing costs for major central banks.


 

 


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