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Silicon Valley Bank Crisis: The Liquidity Crunch We Predicted Has Now Begun
Silicon Valley Bank Crisis: The Liquidity Crunch We Predicted Has Now Begun There has been an avalanche of information and numerous theories circulating the past few days about the fate of a bank in California know as SVB (Silicon Valley Bank). SVB was the 16th largest bank in the US until it abruptly failed and went […]
Germany Unleashed Half-Trillion Dollar ‘Energy Bazooka’ To Keep Lights On
Germany Unleashed Half-Trillion Dollar ‘Energy Bazooka’ To Keep Lights On Western sanctions on Moscow have backfired, failed to paralyze Russia’s economy, and ultimately sparked financial pain for ordinary Europeans and the largest economy in the block. According to Reuters calculations, Germany has hemorrhaged cash to the tune of 440 billion euros ($465 billion) in energy bailouts and […]
Angry Customers Demand Explanation As German Energy Bills Soar
Angry Customers Demand Explanation As German Energy Bills Soar Utilities in Germany have had to handle a surge in customer service calls in recent weeks from clients angry or desperate about their sky-rocketing energy bills, Reuters reports. The biggest utility, E.ON, has ramped up its capacity to handle calls from consumers who are shocked to find […]
Update on the Fed’s QE
Update on the Fed’s QE No Wonder the Cry Babies on Wall Street are clamoring for more. Five SPVs, already on ice, will expire on December 31. The Fed released details today of its corporate-bond purchases in November ($215 minuscule millions) and corporate-bond ETF purchases in November (zilch). Last time it bought any ETFs had […]
Handout Economics: Bizarre New Game Played by Governors and Mayors Nationwide
Handout Economics: Bizarre New Game Played by Governors and Mayors Nationwide If you willingly chose to quit your paying job, spent all of your savings, then demanded that someone else foot the bill for your lifestyle… that wouldn’t make sense. Well, not to most people. But it sure seems like some states in the U.S. are doing […]
America’s Economy Cannot Survive Another Lockdown, And The Cult Of The Reset Knows It
America’s Economy Cannot Survive Another Lockdown, And The Cult Of The Reset Knows It © 2020 World Economic Forum The U.S. economy has been on the verge of collapse for at least a decade, ever since the crash of 2008 and the subsequent explosion in fiat stimulus from the Federal Reserve. While the mainstream media […]
What the Great Reset Architects Don’t Want You To Understand About Economics
What the Great Reset Architects Don’t Want You To Understand About Economics It shouldn’t come as a surprise that the Vice President of the World Bank Carmen Reinhardt recently warned on October 15 that a new financial disaster looms ominously over the horizon with a vast sovereign default and a corporate debt default. Just in the past […]
The Zombie Companies Are Coming
The Zombie Companies Are Coming Easy money is a curse for capitalism. Through the first half of August – which is normally a quiet period for the bond market in the US – a total of $56 billion in junk bonds and leveraged loans were issued by junk-rated companies, according to S&P Global. That was […]
The Bottom’s Falling Out
The Bottom’s Falling Out Imagine you’re standing across the street from a house that’s on the verge of falling apart, a condemned building, an edifice devoured by rot from bottom to top. Now imagine you see a construction crew arriving to repair it, and they start to fix the roof. You would think that’s not […]
You Are Now Leaving FantasyLand: The Losses Will Be Taken By Somebody
You Are Now Leaving FantasyLand: The Losses Will Be Taken By Somebody As the inverted pyramid collapses, the effects will be non-linear. Round about late March, we entered a Financial FantasyLand in which all the sins and excesses of rampant financialization were going to be painlessly washed away. Mever mind the entire U.S. economy is an […]
The Fed Just Picked the “Big Guys” (Again) Over Individuals
The Fed Just Picked the “Big Guys” (Again) Over Individuals In a recent disclosure to Congress, the Fed revealed that it just purchased $429 million in bonds from 86 corporations. They did this through something called a Secondary Market Corporate Credit Facility (SMCCF). Buried on the Fed’s website, the press release explains the intention behind this purchase of bonds: […]
America Convulses in Pain, Fed Bails Out the Wealthy
America Convulses in Pain, Fed Bails Out the Wealthy What’s so insidious about the Fed’s bailouts of investors in hedge funds, mortgage-REITS, stocks, bonds, leveraged loans, and other often risky assets? The destruction of capitalism. By Wolf Richter. This is the transcript of my podcast last Sunday, THE WOLF STREET REPORT. You can listen to it […]
What is Really the Game with the Bailouts?
What is Really the Game with the Bailouts? There is a major crisis economically unfolding and the markets are not yet taking into account the seriousness of the economic damage. I have explained that this is a Coronavirus Bankruptcy Pandemic which has put about 30% of the retail service industry in the crosshairs of insolvency. […]
How the COVID-19 Bailout Gave Wall Street a No-Lose Casino
How the COVID-19 Bailout Gave Wall Street a No-Lose Casino While ordinary Americans face record unemployment and loss, the COVID-19 bailout has saved the very rich This story appears in the June 2020 print edition of Rolling Stone. In late April Marko Kolanovic, a financial analyst for JPMorgan Chase, wrote to clients with good news. Pandemic […]
Congress Sets Up Taxpayers to Eat $454 Billion of Wall Street’s Losses, Where is the Outrage?
Congress Sets Up Taxpayers to Eat $454 Billion of Wall Street’s Losses, Where is the Outrage? Photograph by Nathaniel St. Clair Beginning on March 24 of this year, Larry Kudlow, the White House Economic Advisor, began to roll out the most deviously designed bailout of Wall Street in the history of America. After the Federal […]
