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The Coming Market Crash Will Set Off The Biggest Gold Panic Buying In History
The Coming Market Crash Will Set Off The Biggest Gold Panic Buying In History The leverage in the economic system has become so extreme; investors have no idea of the disaster that is going to take place during the next stock market crash. The collapse of the U.S. Housing and Investment Banking Industry in 2008 […]
WARNING: Markets Reaching Extreme Leverage
WARNING: Markets Reaching Extreme Leverage As investors’ bullish sentiment moves up to euphoric levels, the markets are reaching extreme leverage. This is terrible news because a lot of people are going to lose one heck of a lot of money. According to CNN Money’s Fear & Greed Index, the market is now at the “extreme […]
Only China Can Restore Stability in The Global Economy
Only China Can Restore Stability in The Global Economy Fan Ho East meets west 1963 For those of you who don’t know Andy Xie, he’s an MIT-educated former IMF economist and was once Morgan Stanley’s chief Asia-Pacific economist. Xie is known for a bearish view of China, and not Beijing’s favorite person. He’s now an […]
Bubble Fortunes
Bubble Fortunes Wynn Bullock Child on a Forest Road 1958 A few days ago, former Reagan Budget Director and -apparently- permabear (aka perennial bear) David Stockman did an interview (see below) with Stuart Varney at Fox -a permabull?!-, who started off with ‘the stock rally goes on’ despite a London terror attack and the North […]
US Companies Are More Indebted, More Leveraged, Less Profitable, And More Richly Valued Than Ever
US Companies Are More Indebted, More Leveraged, Less Profitable, And More Richly Valued Than Ever Via MauldinEconomics.com, Once again I start with a warning: A recession is eventually coming and a financial crisis with it. There is a real potential for it to come soon, although serious tax reform could delay it. But sooner or […]
China Capitulates: Injects $25 Billion Into Liquidity-Starved Banks To “Appease Investors”
China Capitulates: Injects $25 Billion Into Liquidity-Starved Banks To “Appease Investors” Is China’s push to deleverage its financial system over? That is the question following last night’s dramatic reversal in recent PBOC liquidity moves, when after weeks of mostly draining liquidity, the central bank injected a whopping 170 billion yuan (net of maturities), or $24.7 […]
Why the Coming Wave of Defaults Will Be Devastating
Why the Coming Wave of Defaults Will Be Devastating Without the stimulus of ever-rising credit, the global economy craters in a self-reinforcing cycle of defaults, deleveraging and collapsing debt-based consumption. In an economy based on borrowing, i.e. credit a.k.a. debt, loan defaults and deleveraging (reducing leverage and debt loads) matter. Consider this chart of total credit […]
Former Treasury Secretary says banks may be riskier now than in the 2008 crisis
Former Treasury Secretary says banks may be riskier now than in the 2008 crisis “Sir. SIR! This your bag,” the TSA agent barked at me last week, more as a statement than a question. “It is.” “Are you carrying any liquids?” I knew immediately; I had forgotten about the bottle of water that I had […]
After Crashing, Deutsche Bank Is Forced To Issue Statement Defending Its Liquidity
After Crashing, Deutsche Bank Is Forced To Issue Statement Defending Its Liquidity The echoes of both Bear and Lehman are growing louder with every passing day. Just hours after Deutsche Bank stock crashed by 10% to levels not seen since the financial crisis, the German behemoth with over $50 trillion in gross notional derivative found […]
2016 Theme #1: The Loss of Great Power Leverage
2016 Theme #1: The Loss of Great Power Leverage This week I am addressing themes I see playing out in 2016. A number of systemic, structural forces are intersecting in 2016. One is the decline of Great Power leverage. Once a nation’s civil society–broadly speaking, the institutions of social cohesion–has been shredded so that power […]
The Damage Has Been Done And The Consequences Will Be Suffered: “Have a Healthy Storage of Food, Precious Metals and Necessary Supplies”
The Damage Has Been Done And The Consequences Will Be Suffered: “Have a Healthy Storage of Food, Precious Metals and Necessary Supplies” While the band plays on and Americans celebrate New Year’s many have no idea what may be in store in 2016. Mainstream financial pundits like to paint a rosy picture of the current […]
2016 Is An Easy Year To Predict
2016 Is An Easy Year To Predict No year is ever easy to predict, if only because if it were, that would take all the fun out of life. But still, predictions for 2016 look quite a bit easier than other years. This is because a whole bunch of irreversible things happened in 2015 that […]
Gold Analyst Warns of Leverage: “There Are About 325 Paper Ounces For Every Physical Ounce Backing It”
Gold Analyst Warns of Leverage: “There Are About 325 Paper Ounces For Every Physical Ounce Backing It” Back in September Zero Hedgereported that something snapped in the COMEX market and all indicators suggest there was a relentless outflow in registered gold. At that time there were about 202,054 ounces of gold available for delivery. To put that into […]
A Hard Look at a Soft Global Economy
A Hard Look at a Soft Global Economy MILAN – The global economy is settling into a slow-growth rut, steered there by policymakers’ inability or unwillingness to address major impediments at a global level. Indeed, even the current anemic pace of growth is probably unsustainable. The question is whether an honest assessment of the impediments […]
The $4.6 Trillion Leveraged Loan Market—–Next Crisis In The Making
The $4.6 Trillion Leveraged Loan Market—–Next Crisis In The Making Financial crises take about a decade to be born. Having lived through four of them, I see the raw materials for a fifth one — flowing from the collapse of so-called leveraged loans — debt piled on top of companies with weak credit ratings. Before examining […]
