Wolf Richter

Oh No, The Inventory Correction Is Confirmed

Awful economic data and corporate announcements confirm: orders are plummeting, the dreaded inventory correction is here, and a recession is now guaranteed. In our already miserable economy, this is going to be a rough ride. Fasten your seatbelt.

Swiss Franc Wreaks Havoc In Switzerland

The run-up of the Swiss franc entailed a stock-market crash, gigantic hits to wealth invested overseas, and big losses in Swiss pension funds. Companies are reeling. Layoffs and a recession are next. The Swiss National Bank (SNB) flooded the market with francs, intervened in the currency markets, and forced real interest rates into negative territory. Without much success.

Oops, Inventory Correction

We really don’t need this. First it was rumors, now it has been announced in an earnings call. Two harmless sounding words: inventory correction. In a healthy economy, it causes a run-of-the-mill business cycle recession. In our economy, it can get ugly. Watch out, second half.

Fed’s Policies Slam Us Again

July inflation is red hot, real wages are down, and real yields are more negative than ever, exactly what the Fed wants. The destruction of the American middle class continues.How these policies will pull us out of our economic debacle is mathematically unclear.

Chain Restaurants Are Conquering France

And so is obesity. Good food and leisurely meals bien arrosé are considered the glue that keeps families, and French society, together. And yet, chain restaurants have elbowed their way in and now control 20% of the total restaurant market.

Tsunami Broke off Giant Icebergs in Antarctica

The horrific tsunami from the earthquake off the coast of Japan made it all the way across the Pacific to the Antarctica and caused the calving of huge icebergs. The event was captured by satellite images. And refreshingly, for once, no one tried to force-link it to global warming.