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Oil Markets Tremble As Chinese Stocks Crash
Oil Markets Tremble As Chinese Stocks Crash China’s stock market fell sharply on Thursday, dragged down by a range of concerns that should offer a warning to the broader global economy. The Shanghai Composite Index fell nearly 3 percent on Thursday, falling to its lowest point in nearly four years. The problems in China are […]
“One Size Fits Germany” Math Impossibility, Get Your Money Out of Italy Now!
“One Size Fits Germany” Math Impossibility, Get Your Money Out of Italy Now! Italy, on the Euro, has a currency that is 9% too high. Germany, on the Euro, has a currency that is 11% too low. There was much discussion yesterday about the US Treasury report that determined China was not a currency manipulator. […]
Are Chinese Municipal $6 Trillion (40 Trillion Yuan) Hidden Debts Posing Titanic Risks?
Are Chinese Municipal $6 Trillion (40 Trillion Yuan) Hidden Debts Posing Titanic Risks? The China Collapse trope is rearing its ugly head again. This time round, the spin is on China’s local government or municipal debts. The latest narrative goes like this : local governments in China are estimated to have hidden debts of 40 […]
Russia And China Prepare To Ditch Dollar In Bilateral Trade
Russia And China Prepare To Ditch Dollar In Bilateral Trade In a time when many nations have gone public with their intention to ditch the dollar in part or in whole, in bilateral trade with non-US counterparts, either to prevent the US from having “veto power” of commerce courtesy of SWIFT or simply in response […]
Leon Cooperman: “The Whole Structure Of The Market Is Broken”
Leon Cooperman: “The Whole Structure Of The Market Is Broken” In a wide-ranging interview on CNBC, Leon Cooperman, chairman and CEO of Omega Advisors, explained that he doe snot see the market as ‘cheap’ or ‘expensive’ currently but warns that traditional value-manager-driven strategies face difficulties because ” all these quantitative trading systems are destroying the […]
Chinese Verbal Intervention In The Market Fails As Stock Rout Accelerates
Chinese Verbal Intervention In The Market Fails As Stock Rout Accelerates This morning, when we reported that the latest flood of margin calls, resulting from $600 billion in shares pledged as collateral for loans and representing a whopping 11% of China’s market cap, sent the Shanghai Composite tumbling 3% to the lowest level since November […]
Dollar Libor Jumps To Fresh 10 Year High, Adding To Funding Headwinds
Dollar Libor Jumps To Fresh 10 Year High, Adding To Funding Headwinds It may be the bete noir of the credit market, but despite the gradual phase out of the infamous manipulated benchmark, Libor remains the reference rate for trillions in floating rate debt instruments, and in a further indication that monetary conditions are tightening […]
The Weighted Average Cost Of Capital
ittybiz.com The Weighted Average Cost Of Capital When it goes up, prices go down. It’s going up… This is a revisitation of a report I wrote back in late 2016, predicting the imminent end of zero-bound interest rates and warning of the downward pressure that rising rates, mathematically, must place on today’s elevated asset prices. […]
Here’s Why the Market Must Continue to Rip Higher — Everything Depends On It
Here’s Why the Market Must Continue to Rip Higher — Everything Depends On It Rarely discussed, corporate and government pensions, are barreling towards disaster. For some reason, there is an assumption that what ails the government, with their $20 trillion in debt, isn’t something that ordinary folk need to worry about. After all, times are good […]
Soaring Deficits and Interest Costs Leave the U.S. Looking Very Fragile
Soaring Deficits and Interest Costs Leave the U.S. Looking Very Fragile If you take a step back and look at the macro picture of the U.S. economy – it resembles a huge, upside-down, glass pyramid. Constantly teetering back and forth – struggling with everything it has to keep from collapsing. And so far – it’s […]
China Crashes As Flood Of Margin Calls Sparks “Liquidity Crisis”, Panic Selling
China Crashes As Flood Of Margin Calls Sparks “Liquidity Crisis”, Panic Selling The Treasury’s latest semiannual FX report may have spared China the designation of currency manipulator (for now… in a new twist, there was a section dedicated exclusively to China in the Executive Summary, a clear signal from the Treasury that China is the […]
Is the Greatest Bull Market Ever Finally Ending? (Hint: Follow the Money)
Is the Greatest Bull Market Ever Finally Ending? (Hint: Follow the Money) The key here is the gains generated by owning US-denominated assets as the USD appreciates. Is the Greatest Bull Market Ever finally ending? One straightforward approach to is to follow the money, i.e. global capital flows: assets that attract positive global capital flows […]
A Global People’s Bailout for the Coming Crash
A Global People’s Bailout for the Coming Crash When the global financial crisis resurfaces, we the people will have to fill the vacuum in political leadership. It will call for a monumental mobilisation of citizens from below, focused on a single and unifying demand for a people’s bailout across the world. *** A full decade […]
The Ten Big Lies of Traditional Western Politics
The Ten Big Lies of Traditional Western Politics Photo Source DieselDemon | CC BY 2.0 Public lands managed by the federal government loom large in western politics, a defining topic dictating the political debate. Corporate interests – logging, grazing, and mineral extraction most prominently – have often succeeded in dominating that debate through their good-old-boy […]
More Italians Move Savings To Switzerland As Fears Of Banking “Doom Loop” Intensify
More Italians Move Savings To Switzerland As Fears Of Banking “Doom Loop” Intensify With the euro weakening against the Swiss franc (recently trading at session lows of 1.14) and Italian stocks and bonds tumbling once again on reports that the European Commission is planning to reject the Italian draft budget plan submitted earlier this week […]
