During the Great Financial Crisis (GFC) of 07-09 – (some ways seems like an eternity ago…others yesterday – ok, digressing again) Credit Conditions fell apart quickly and with little warning….
The big three Credit Agencies at the time and still today ….Moody’s, Fitch and S&P Global – then called S&P were late to the softening credit cycle and caught a tremendous amount of scrutiny for a lack of warning as Credit Conditions brought a tremendous amount of pressure to the Financial System…
In True Fooled me once like fashion, they are intent on NOT being late to the party this time.
Fitch Threatens Further Downgrades
With Fitch stepping into the credit Downgrade pool first followed quickly by Moody’s, Fitch is back again raising awareness with a symbolic threat to the largest bank in the US, JPMorgan…
Would not be surprised to see the lone silent Agency speak up soon, S&P Global, if for no other reason to save face in case there is a serious weakening….
Bond investors are taking the comments serious and repricing interest rates Higher/Bonds lower values to accommodate higher risk associate with the agency call.
Short term a little headwind on bond values… long term a HUGE advantage in the form of bigger coupons from our Safe Money – NICE!
Oh… Jerome Powell and the rest of his board members on the FOMC (Federal Open Market Committee) have their popcorn out as they happily watch this slowdown occur !
Have a Great “Higher Safe Money Rates” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
July 2016 Video, Financial Planning Tip and Economic Review- By John Kvale
Here is our July 2016, Monthly Economic and Capital Market Review, along with a Video for your viewing and listening pleasure. Hope you are enjoying!
July 2016 Video
Financial Planning Tip –
What to do when your identity is stolen
This article was so popular this month we wanted to review it again at a very high level as it made our Financial Planning Tip of the month:
Things to do when your identity is stolen:
Economic Update
Payroll Jumps
We crowed loudly at an outlier payroll report two months ago. As a reminder job hiring AKA Payroll is a measure of the economy. The May report released in June was… well a real stinker. As we mentioned, it just did not add up…..
Boom!… Nice bounce back- far right bar!
Have a Great Day!
See you again at the end of August and the beginning of school !
John A. Kvale
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com
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Posted in Cyber, Economy, Investing/Financial Planning, Market Comments, Monthly Review, Video
Tagged Credit Agency, Credit Freeze, Employment, Experian, Federal Trade Commission, FTC, Identity Theft, Transunion