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Who Will Get Hit When Collateralized Loan Obligations (CLOs) Blow Up? Banks or Unsuspecting “Market Participants”?
Who Will Get Hit When Collateralized Loan Obligations (CLOs) Blow Up? Banks or Unsuspecting “Market Participants”? Answers emerge from the murky business of CLOs. There has been quite some hoopla surrounding Collateralized Loan obligations (CLOs) because the underlying leveraged loans – junk-rated loans often used by private equity firms to fund leveraged buyouts (LBO) and […]
Blain’s Morning Porridge – June 29 2020: What if it’s just begun?
Blain’s Morning Porridge – June 29 2020: What if it’s just begun? What if the real pain is still to come? “That about sums it up for me..” There is an amusing piece on the FTs’ Alphaville listing 20 things investors should look for when trying to work out who will be the next Wirecard. You […]
Natural Gas Price Plunge Could Soon Lead To Shut-Ins
Natural Gas Price Plunge Could Soon Lead To Shut-Ins Natural gas prices plunged to new lows this week, falling below $1.50/MMBtu, a catastrophically low price for U.S. gas drillers. The factors afflicting the gas market are multiple. Prices had already fallen below $2/MMBtu at the start of 2020, weighed down by oversupply. But it wasn’t a […]
The #1 Question I am Receiving From Readers
The #1 Question I am Receiving From Readers Could the markets crash again? This is the #1 question I’m receiving from subscribers. When I ask them why they’re concerned, the #1 explanation is that the economy is in a recession/depression and yet stocks are close to or have already hit new all-time highs. Let’s dissect […]
Chesapeake Files For Bankruptcy, Wiping Out $7 Billion In Debt And Any Existing Equity Value
Chesapeake Files For Bankruptcy, Wiping Out $7 Billion In Debt And Any Existing Equity Value After years of melting, the Chesapeake icecube is finally history: at exactly 350pm on Sunday afternoon, the company that launched the US shale boom, finally gave up and filed for a pre-packaged bankruptcy in the Southern District of Texas. In […]
The Fed Isn’t a Magic Money Tree
The Fed Isn’t a Magic Money Tree There seems to be no end to the Federal Reserve’s arrogance. Fed officials believe that through their wise actions, they can eliminate the business cycle, lower unemployment and make society prosperous. But it’s actually much more limited in what it can do. All the Fed can reliably do […]
Recovery or Renewal? Time for an economic rethink
Recovery or Renewal? Time for an economic rethink A recent study of long-term fluctuations in economic growth published in Nature Scientific Reports suggests both danger and opportunity in the emerging debate about post Covid-19 economic recovery. In this blog, Craig D. Rye and Tim Jackson outline their findings. The International Monetary Fund (IMF) expects the global economy to […]
30% Of U.S. Shale Drillers Could Go Under
30% Of U.S. Shale Drillers Could Go Under U.S. shale was one of the big losers of the Saudi-Russian price war that many saw as a war on U.S. shale. Producers scrambled to stay afloat as prices sank back to lows not seen since 2016, and they are still scrambling. Banks are giving them the […]
Weekly Commentary: More W than V
Weekly Commentary: More W than V The much vaunted “V” recovery is improbable. To simplify, a somewhat “w”-looking scenario is a higher probability. After such an abrupt and extraordinary collapse in economic activity, a decent bounce was virtually assured. Millions would be returning to work after temporary shutdowns to a substantial chunk of the U.S. […]
Into Darkness: Where The Fed Is Leading Us
Into Darkness: Where The Fed Is Leading Us The system is hurtling towards breakdown. Protect yourself now. As you may know, I was one of the very first voices publicly reporting on covid-19, issuing an alert that the virus was a significant pandemic event on Jan 23rd, 2020. This was long before most media outlets […]
How Surging Bank Deposits May Collapse the U.S. Dollar
How Surging Bank Deposits May Collapse the U.S. Dollar In another episode of “Strange 2020”, banks have become flush with deposits. But not in the way you might expect. According to CNBC, “A record $2 trillion surge in cash has hit the deposit accounts of U.S. banks since the coronavirus first struck the U.S. in January.” In one […]
ECB v Fed
ECB v Fed QUESTION: Martin, You mentioned in a recent blog post that the ECB, unlike the FED, can go bankrupt. Can you explain further? Not sure where you get the time, energy and resources to research and write all that you do buy it is truly amazing. Regards, M ANSWER: The Federal Reserve does not need […]
COVID-19 and the economy: Where do we go from here?
COVID-19 and the economy: Where do we go from here? The COVID-19 story keeps developing. At first, everyone listened to epidemiologists telling us that a great deal of social distancing, and even the closing down of economies, would be helpful. After trying these things, we ended up with a huge number of people out of work […]
An Excellent Seasonal Buying Opportunity in Silver Lies Directly Ahead
An Excellent Seasonal Buying Opportunity in Silver Lies Directly Ahead Gold’s Little Brother Today I want to put a popular precious metal under the magnifying glass for you: silver. Silver, often referred to as the “little brother” of gold, has a particularly interesting seasonal pattern I would like to share with you. Shiny large good delivery […]
