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Demand for Bank Notes in Dollars & Euros Spikes Despite Fears of Covid-19 Contaminated Cash

Demand for Bank Notes in Dollars & Euros Spikes Despite Fears of Covid-19 Contaminated Cash A curious phenomenon.  In the United States, as coronavirus concerns grew and state after state went into lockdown, and as consumption plunged and unemployment exploded at a previously unimaginable rate, the amount of physical dollars in circulation spiked to $1.89 […]

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From Panic-Buying to Lockdowns of Eateries & Manufacturing: Truckers, Railroads Face Supply Chain Turmoil, Spikes & Plunges

From Panic-Buying to Lockdowns of Eateries & Manufacturing: Truckers, Railroads Face Supply Chain Turmoil, Spikes & Plunges “There has been a clear divide between winners and losers.” Panic buying in late February and March was followed by a sudden shift in consumption in mid-March away from restaurants, schools, college campuses, office buildings, other work locations […]

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Farm-Labor Crisis under COVID-19 Sends Countries Scrambling

Farm-Labor Crisis under COVID-19 Sends Countries Scrambling Miserable, crowded living conditions of Europe’s foreign farm workers put them at much greater risk. And they’re staying away. In one of the many paradoxes of the new world we live in, Western European countries that have seen millions of jobs wiped out in a matter of weeks […]

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QE-4 Cut in Half this Week. Fed’s Helicopter Money for Wall Street & the Wealthy Hits $1.8 Trillion in 4 Weeks

QE-4 Cut in Half this Week. Fed’s Helicopter Money for Wall Street & the Wealthy Hits $1.8 Trillion in 4 Weeks Regular folks need not apply. Total assets on the Fed’s weekly balance sheet jumped by $272 billion in one week, to $6.08 trillion, according to the Fed’s release Thursday afternoon. Since the Fed started this spree of […]

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The Downgrade Massacre Has Started

The Downgrade Massacre Has Started Just astounding. So many downgrades in just of a couple of days. And zero upgrades. Here’s who got hit. I get “Moody’s Daily Alert” in my inbox, which lists Moody’s ratings actions for the day. The Alerts are usually a mix of a few upgrades and a few downgrades. Many […]

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The Great American Shale-Oil Bust Turns into Massacre

The Great American Shale-Oil Bust Turns into Massacre Shares of shale oil drillers collapsed by 25%-50% today. Their bonds got massacred. Saudi-Russia price-war strategy appears successful in wiping out investors in the US shale-oil sector. It was so chaotic and brutal in the crude oil market today that the EIA, which is part of the […]

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Median CPI Runs Hot, Fed Averts Eyes

Median CPI Runs Hot, Fed Averts Eyes Despite the Fed’s proclamations, the dollar lost purchasing power at a good clip. The inflation measure by the Cleveland Fed – the “Median CPI” – rose at 0.3% in January from December. This translates into an annualized rate of 3.7%. For the 12-month period, the Median CPI rose […]

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Is the Corporate-Debt Bubble Ripe Yet?

Is the Corporate-Debt Bubble Ripe Yet? What does it mean when the Fed and other central banks jointly bemoan the effects of their own policies? Worried about not being able to keep all the plates spinning? This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: The Federal Reserve, the ECB, the individual […]

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THE WOLF STREET REPORT: Is the Corporate-Debt Bubble Ripe Yet?

THE WOLF STREET REPORT: Is the Corporate-Debt Bubble Ripe Yet? What does it mean when the Fed and other central banks jointly bemoan the effects of their own policies? Worried about not being able to keep all the plates spinning? (11 minutes)

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Inflation Is Coming: All the Trends That Were Deflationary Are Slowly Going in Reverse

Inflation Is Coming: All the Trends That Were Deflationary Are Slowly Going in Reverse But of all potential economic outcomes, the one least anticipated and least priced in, is an uptick in inflation. Investing is all about probabilities. If the perceived odds of an event are high, certain securities will be priced based on those […]

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What’s Behind the Subprime Consumer Loan Implosion?

What’s Behind the Subprime Consumer Loan Implosion? These are the good times, but why are subprime credit cards, auto loans, and short-term installment loans blowing out? This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: OK, we’ve got a situation in subprime consumer loans. The delinquency rate on credit-card loan balances at […]

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Fear of “Reversal Rates” Sets in, Says the Fed

Fear of “Reversal Rates” Sets in, Says the Fed The fear that today’s negative or low interest rates render central banks helpless in face of the next economic crisis. There is now a new theory cropping up in Fed-speak and more generally in central-bank speak. It’s not actually a new theory. I have been saying […]

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THE WOLF STREET REPORT: How the Fed Boosts the 1%, as Told by the Fed

THE WOLF STREET REPORT: How the Fed Boosts the 1%, as Told by the Fed Even the upper middle class loses share of household wealth to the 1%. The bottom half gets screwed.

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Fed Goes Nuts with Repos & T-Bills but Sheds Mortgage Backed Securities

Fed Goes Nuts with Repos & T-Bills but Sheds Mortgage Backed Securities The fastest increase in assets for any two-month period since the post-Lehman freak show in late 2008 and early 2009. Total assets on the Fed’s balance sheet, released today, jumped by $94 billion over the past month through November 6, to $4.04 trillion, after […]

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What Heavy Trucks Are Saying

What Heavy Trucks Are Saying “I do believe that in North America it is a cyclical downturn”: Cummins COO. Orders for heavy trucks, after the historic boom in 2018, plunged this year, but they may have finally bottomed out. In October 2019, truck makers in the US received about 22,072 orders for Class-8 trucks, according […]

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