You Won't Believe What Europe's Central Bank Just Did

The ECB cut rates for the second time, as expected, though amidst a strong bond/bund market rally that has now completely un-inverted that yield curve. This comes at a time when major businesses like Volkswagen are thinking about closing down factories due to how much idle capacity they have. What links all of these together, what explains all the facts, is that there was never a global recovery, only a transitory price illusion. Eurodollar University's Money & Macro AnalysisBloomberg Half-Empty Car Plants in Europe Spell Trouble for Workershttps://www.bloomberg.com/news/articles/2024-09-11/vw-s-german-factory-closures-highlight-wider-problems-for-europe-s-carmakers?srnd=phx-economics-v2Volkswagen 2023 Annual Report Income Statementhttps://annualreport2023.volkswagen-group.com/consolidated-financial-statements/income-statement.htmlVolkswagen 2019 Annual Reporthttps://annualreport2019.volkswagenag.com/ECB Press Conference Statementhttps://www.ecb.europa.eu/press/press_conference/monetary-policy-statement/2024/html/ecb.is240912~4f7b17040c.en.htmlBloomberg ECB’s Economic Hopes at Risk as Consumers Put Spending on Icehttps://www.bloomberg.com/news/articles/2024-09-09/ecb-s-economic-hopes-at-risk-as-consumers-put-spending-on-iceStatista Half of OECD Countries Earn Less Now Than Pre-Pandemichttps://www.statista.com/chart/32831/real-wage-growth-in-the-oecd/OECD Employment Outlook 2024https://www.oecd.org/en/publications/oecd-employment-outlook-2024_ac8b3538-en.htmlhttps://www.eurodollar.universityTwitter: https://twitter.com/JeffSnider_EDU