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Europe’s Bailouts Risk a Full-Blown Financial Crisis
EUROPE’S BAILOUTS RISK A FULL-BLOWN FINANCIAL CRISIS The measures implemented by governments in the eurozone have one common denominator: a massive increase in debt from governments and the private sector. Loans lead the stimulus packages from Germany to Spain. The objective is to give firms and families some leverage to pass the bad months of […]
Underneath the Surface Trouble Is Brewing Once Again
Underneath the Surface Trouble Is Brewing Once Again Larry McDonald, publisher of the investment research service The Bear Traps Report, warns that this crisis is far from over. He spots growing tensions in the credit markets and thinks that large public borrowers like Italy and New York State are in need of massive bailouts. Stocks […]
THE WOLF STREET REPORT: Nothing’s Fixed – What’s Behind the Corporate Debt Bailout
THE WOLF STREET REPORT: Nothing’s Fixed – What’s Behind the Corporate Debt Bailout Over the past two years, nobody knew what would trigger the next financial crisis, but just about everyone knew it would involve the record pile of corporate debt. And so it happened. Now the Fed fixed it…
Recession Begins: Q1 GDP Plunges 4.8%, Biggest Drop Since The Financial Crisis
Recession Begins: Q1 GDP Plunges 4.8%, Biggest Drop Since The Financial Crisis With news that the Gilead Remdesivir trial had reportedly met its primary endpoint hitting “coincidentally” just seconds before the Q1 GDP print, and with newswires initially reporting the GDP erroneously as a positive 4.8% print, it was clear that the real number would be a disaster, and […]
Let the Institutional Innovation Begin! (Part I)
Let the Institutional Innovation Begin! (Part I) In corvid-19, neoliberal capitalism has met a formidable foe. The pandemic has shown just how fragile and dysfunctional the market/state order — as a production apparatus, ideology, and culture — truly is. Countless market sectors are now more or less collapsing with a highly uncertain future ahead. With […]
Peter Schiff: This Is a Financial Crisis
Peter Schiff: This Is a Financial Crisis A lot of people in the mainstream still insist this isn’t a financial crisis like we saw in 2008. They say this is just a self-inflicted shutdown of the economy. Since we decided to shut it down, we can decide to start it back up again. Peter Schiff […]
Unprecedented Demand Destruction Marks The Return Of The Super Contango
Unprecedented Demand Destruction Marks The Return Of The Super Contango These days, every corner of the oil market is “unprecedented”—from the demand destruction to the supply surge and the resulting glut. The oil futures curve is no exception and is also in a state never seen before. This is the super contango, the market situation in […]
Don’t Wait For the Storm to Pass–Learn to Dance in the Rain!
DON’T WAIT FOR THE STORM TO PASS – LEARN TO DANCE IN THE RAIN! Whoever doesn’t learn to dance in the rain will struggle to survive the virtually non-stop storms that the world will experience in the next few years. The abrupt downturn in the global economy, triggered but not caused by coronavirus, came as […]
Rickards: It’ll Get Worse it Before It Gets Better
Rickards: It’ll Get Worse it Before It Gets Better We’re well into the coronavirus pandemic at this point. As of this writing, there are 360,765 reported infections and 15,491 deaths worldwide. Over the next few days, you may be certain that those numbers will be significantly higher. That’s how pandemics work. The cases and fatalities […]
A Shaky Foundation
A Shaky Foundation And so castles made of sand fall in the sea, eventually.– Jimi Hendrix There’s a widespread belief out there that the U.S. and the global economy in general is on much sounder footing ever since the financial crisis of a decade ago. Unfortunately, this false assumption has resulted in widespread complacency and […]
The Collapse Of This Historic Correlation Suggests A Major Crisis Is Imminent
The Collapse Of This Historic Correlation Suggests A Major Crisis Is Imminent A lot of digital ink has been spilled in recent days over the perplexing reversal of the Yen, which for years was seen by the market as a “flight to safety” trade (as unexpected crisis events would prompt capital repatriation into Japan or […]
World Bank Warns “Wave Of Debt” Could Unleash Historic Crisis, Crush The Global Economy
World Bank Warns “Wave Of Debt” Could Unleash Historic Crisis, Crush The Global Economy Something happens to the world’s “really smart people” when the topic of debt is discussed: they become blabbering idiots. Consider that last month we reported that according to the Institute of International Finance, global debt has now hit $250 trillion and is expected […]
“The Fed Hasn’t Expanded Its Balance Sheet At This Speed Since The Financial Crisis”
“The Fed Hasn’t Expanded Its Balance Sheet At This Speed Since The Financial Crisis” The Fed’s balance sheet is expanding at a faster rate than during QE1, QE2 or QE3. * * * Submitted by Howard Wang of Convoy Investments Has QE4 begun? The $1.2 trillion per month hole in the repo market. In the […]
The Economic Crisis of 2008 Did Not End, It Has Been in Remission
The Economic Crisis of 2008 Did Not End, It Has Been in Remission There have been many articles appearing in recent months suggesting that the economy might go into a recession within the next year. Many have focused on whether the Federal Reserve should cut interest rates to stop this from happening. There also has been a […]