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: Investment outlook
Boeing Crashes: $43 Billion in Share Buybacks Turn into Existential Threat
Yves here. When we made grim prognostications about Boeing’s future, we were treated as nuts. By Wolf Richter, editor at Wolf Street. Originally published at Wolf Street Boeing’s shares [BA] came unglued, plunging 18.1% today, after having already plunged over the past four weeks. Since February 12, shares have crashed 46%, and since the peak […]
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...Airlines: Bleeding from Coronavirus, and Worse to Come
Coronavirus carnage continues, particularly at bankruptcy-prone airlines.
Read more...Is the U.S. Fracking Boom Based on Fraud?
Is the seamy side of fracking the only side?
Read more...HSBC Announces Mass Job Cuts, Huge Write-Down, Asset Sales, Halt of Share Buybacks. Warns of Coronavirus Impact on Credit Losses & Revenues in China & Hong Kong
Once storied, now sprawling TBTF HSBC has started a big retrenchment in the face of mounting business woes. Is it the canary in the coal mine?
Read more...Yet More Finance Profiteering: Green Bonds
Count on Wall Street to find a profit angle in actual or pending disaster. Green bonds are becoming a hot idea.
Read more...Hubert Horan: Can Uber Ever Deliver? Part Twenty-Two: Profits and Cash Flow Keep Deteriorating as Uber’s GAAP Losses Hit $8.5 Billion
Dissecting how Uber spun its 2019 financial reports. The actual results continue to be ugly, with no path to profit.
Read more...Rentier Capitalism: Great for Stocks, Lousy for Growth
An oddly neglected paper gives an idea of how much rentier capitalism has distorted the US economy.
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...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...Manufacturing Employment, New Orders & Production Fall Fastest Since Apr-Aug 2009
Yves here. As readers know well, on the one hand, services and not manufacturing dominate the US economy. But manufacturing jobs, even now, are relatively well paid and manufacturing growth is often seen as having spillover effects. By Wolf Richter, editor at Wolf Street. Originally published at Wolf Street US manufacturing took a turn from […]
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...US Freight Shipments Fall Below 2014 Level. Answers Emerge
Freight volumes have traditionally served as a measure of economic activity. What do they say now?
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