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“A Daisy Chain Of Defaults”: How Debt Cross-Guarantees Could Spark China’s Next Crisis
“A Daisy Chain Of Defaults”: How Debt Cross-Guarantees Could Spark China’s Next Crisis On November 8, China shocked markets with its latest targeted stimulus in the form of an “unprecedented” lending directive ordering large banks to issue loans to private companies to at least one-third of new corporate lending. The announcement sparked a new round […]
California Rooftop Solar Mandate: An example of bad groupthink?
California Rooftop Solar Mandate: An example of bad groupthink? In recent news, California legislators have done a gimmick-trick that has earned the state loud applause from the environmentally-minded consumers and activists: California Energy Commission (CEC) recently voted 5-0 to add a new provision to the state’s building code. This includes a requirement that from 2020, […]
Matthew and Sarah Elliott: How a UK Power Couple Links US Libertarians and Fossil Fuel Lobbyists to Brexit
Matthew and Sarah Elliott: How a UK Power Couple Links US Libertarians and Fossil Fuel Lobbyists to Brexit If you have detected a distinctly American flavour to the rampant lobbying in Westminster corridors over a Brexit deal, there is a good reason why. A close look at the transatlantic connections of the London-based groups pushing for […]
“The Outlook For The Global Economy Has Deteriorated”: Oil, Copper And Lumber Are All Telling Us The Next Economic Downturn Is Here
“The Outlook For The Global Economy Has Deteriorated”: Oil, Copper And Lumber Are All Telling Us The Next Economic Downturn Is Here Oil, copper and lumber are all telling us the exact same thing, and it isn’t good news for the global economy. When economic activity is booming, demand for commodities such as oil, copper […]
The Broken Clocks’ Minute
The Broken Clocks’ Minute Sometimes the reasons you’re wrong turn out to be the reasons you’re right. Even a broken clock is right twice a day. Old Wall Street adage Anyone who has consistently sounded cautionary or outright bearish notes during the last nine years of relentlessly rising equity markets has been cast aside. Wall […]
The Wolf Street Report
THE WOLF STREET REPORT Market Exuberance Ends, Pain Starts In the 14 months from the presidential election through January 2018, the Dow soared 49%. Housing prices soared too. The real economy followed. Consumers went on a spending spree. But now, this phenomenon — the surge in exuberance among consumers, investors, homebuyers, speculators, business-decision makers, and […]
The Eurozone Banks’ Trillion Timebomb
The Eurozone Banks’ Trillion Timebomb Eurozone banks have fallen dramatically in the stock market despite the results of the stress tests carried out by the ECB, and the EU Banks Index is down 25% on the year despite year-long bullish recommendations from almost every broker. This should not surprise anyone because we have seen in […]
Bear Market Growls As Market Remains Weak 11-16-18
Bear Market Growls As Market Remains Weak Several months ago, I penned an article about the problems with “passive indexing” and specifically the problem of the “algorithms” that are driving roughly 80% of the trading in the markets. To wit: “When the ‘robot trading algorithms’ begin to reverse (selling rallies rather than buying dips), it will […]
Weekly Commentary: Canary in the Credit Market’s Coal Mine
Weekly Commentary: Canary in the Credit Market’s Coal Mine What ever happened to “Six Sigma”? GE was one of the most beloved and hyped S&P500 stocks during the late-nineties Bubble Era. With “visionary” Jack Welch at the helm, GE was being transformed into a New Age industrial powerhouse – epitomizing the greater revolution of the […]
What The Oil Price Collapse Says About The Economy
What The Oil Price Collapse Says About The Economy In Tuesday’s technical update, I discussed the breakdown in the major markets both internationally as well as domestically. Of note, was the massive bear market in China which is currently down nearly 50 percent from its peak. (Click to enlarge) What is important about China, besides […]
How The Bubbles In Stocks And Corporate Bonds Will Burst
How The Bubbles In Stocks And Corporate Bonds Will Burst As someone who has been warning heavily about dangerous bubbles in U.S. corporate bonds and stocks, people often ask me how and when I foresee these bubbles bursting. Here’s what I wrote a few months ago: To put it simply, the U.S. corporate debt bubble […]
Sino-Russian interdependence will be based on oil
Sino-Russian interdependence will be based on oil Although Beijing is Moscow’s largest trading partner, while Russia only ranks in the second ten among China’s importers, the Kremlin is strategically the most important contractor because it supplies the most desirable product – oil – and Chinese demand for this raw material is growing. It appears that […]
The Intolerable Scourge of Fake Capitalism
The Intolerable Scourge of Fake Capitalism Investment Grade Junk All is now bustle and hubbub in the late months of the year. This goes for the stock market too. If you recall, on September 22nd the S&P 500 hit an all-time high of 2,940. This was nearly 100 points above the prior high of 2,847, which […]
The Primacy Of Income
The Primacy Of Income The Era Of Gains is over Ever since the central banks became serial bubble blowers twenty years ago, household wealth has mostly been driven by asset price inflation: But this has been a quixotic pursuit. Created by pulling tomorrow’s prosperity into today, these asset price bubbles are unsustainable, and invariably suffer […]
