The Fed Backfires: Shock and Awe Rate Drop to 0%, Emergency Bond Buying Program Leads to Limit Down Drops in US Equity Futures as Real World Coronavirus Damage Worsens
The Fed just told everyone to assume the brace position.
Read more...Category Archives: Credit markets
How the COVID-19 Shock Is Different
Looking at COIVD-19 impacts.
Read more...After Bloody Day, Coronavirus Meltdown Continues. Big Danger: Italian and Eurobanks Are Set To Blow
So many coronavirus panics that a looming risk is getting little notice: implosion of Italy’s banks, a potential Credit Anstalt event.
Read more...Oil Price Crash: 50% Of U.S. Shale Could Go Bankrupt
Yesterday’s oil price downdraft, if not meaningfully reversed, will create a world of hurt among US producers, most of all shale gas players.
Read more...Mr. Market Loses It Over Coronavirus Risk: Oil Tanks, S&P Futures Trades Halted on Limit Down Overnight, Gold Jumps
Coronavirus infects Mr. Market.
Read more...Coronavirus: Bracing for the Economic Shockwave
The coronavirus spread is setting up a nasty real economy-financial system contraction.
Read more...Wolf Richter: Subprime Credit Card Delinquencies Spike to Record High, Past Financial-Crisis Peak, as Other Consumers Relish the Good Times. Why?
The concern is not for banks or investors in subprime-credit-card backed securities. But what does this bifurcation tell us about consumers?
Read more...Foreign Exchange Swaps: Hidden Debt, Lurking Vulnerability
How hidden foreign exchange swaps contribute to financial fragility.
Read more...Subprime Auto Loans Explode, “Serious Delinquencies” Spike to Record. But There’s No Jobs Crisis, These Are the Good Times
Nearly a quarter of all subprime auto loans are 90+ days delinquent. Why?
Read more...Coronavirus: Australia Faces Calamity
Identifying likely economic road kill from the coronavirus outbreak.
Read more...Do Davos Billionaires and Bankers Really Believe Booms and Busts Are Over Because They’ve Trained the Fed?
Fed tightening is no longer needed to create recessions, given fragile credit structures and a growing pandemic out of China.
Read more...Michael Hudson on the History of Debt Cancellation, Austerity in Europe, January 2020
Michael Husdon reviews the key themes of his recent book, ……and Forgive Them Their Debts, and discusses German austerity.
Read more...Debt Has Not Been Caused by Low Interest Rates, but Higher Rates Would Topple the Whole World Economy
Yet more official hand-wringing about interest rates…when they aren’t the core economic problem.
Read more...Student Loans, Meet Greece: Extend and Pretend Bond Maturities
Shed a crocodile tear for investors in student loans: they are sometimes discomfited by short-lived downgrades when loan maturities are pushed out.
Read more...Credit Cycles and Asset Returns
Yves here. I’m clearly not in touch. I am surprised that this finding, that credit booms predict equity busts, is novel. Of course, given that manias last way longer than cooler heads deem possible, judging the peak of a credit cycle is tricky business. Nevertheless, when a wee summer associate at bond trading powerhouse Salomon […]
Read more...