Monthly Archives: October 2013
Last Hope For Holiday Shopping Frenzy: The Few Who Can Splurge
by Wolf Richter • • Comments Off on Last Hope For Holiday Shopping Frenzy: The Few Who Can Splurge
Consumer spending hasn’t exactly been hot. With one big exception: auto sales. At 20% of total retail sales, they’ve been phenomenal and propped up overall retail sales. But in September, there was a downdraft. The calendar got blamed. And in October, there was the government shutdown and debt-ceiling debacle. And now all bets are off.
Hiding Inflation: People Get Bigger, Airline Seats Get Narrower
by Wolf Richter • • Comments Off on Hiding Inflation: People Get Bigger, Airline Seats Get Narrower
Selling airline tickets to our increasingly pauperized consumers is an art. And hiding price increases is an even greater art. While there are people who don’t worry about the price as they luxuriate in first class, others aren’t so lucky. For them, the industry has a special treat: squeezing their hips.
What Will It Take To Blow Up The Entire Japanese Banking System? (Not Much, According To The Bank of Japan)
by Wolf Richter • • Comments Off on What Will It Take To Blow Up The Entire Japanese Banking System? (Not Much, According To The Bank of Japan)
Buried in the Bank of Japan’s Financial System Report is a gorgeous whitewash doozie: if interest rates rise by 1 percentage point, it would cause ¥8 trillion ($82 billion) in losses across the banking system. Banks would be able to digest it. The system is safe. But then the report tallied up the losses of a 3 percentage point rise.
Ukraine & Turkey: The European Energy Coup
by Oilprice.com • • Comments Off on Ukraine & Turkey: The European Energy Coup
By Analysts of Oil & Energy Insider: The Ukraine controls the transit of 90% of Russia’s natural gas to Europe and dependents on Russia for 60% of its own gas consumption. Russia is using its gas stranglehold on the Ukraine to gain control of its transit system. The EU is involved too. An epic struggle. But now, a deal with Turkey might usurp it.
France Clamors for Currency War, Bundesbank Warns Of Housing Bubble
by Wolf Richter • • Comments Off on France Clamors for Currency War, Bundesbank Warns Of Housing Bubble
The euro, its dexterous management, the “whatever-it-takes” guarantees by ECB President Draghi, the trillions being shifted around to prop up banks and governments – all these efforts to keep the Eurozone duct-taped together have hit countries differently. Including France and Germany. They’re shooting at each other now, and hitting the ECB.
Texas Instruments CFO Admits: Stock Market Is Overpriced
by Wolf Richter • • Comments Off on Texas Instruments CFO Admits: Stock Market Is Overpriced
Stocks balloon, we’re incessantly told, because revenues are rising due to great products, ingenious strategies, or brilliant marketing; and because earnings are rising due to, well, if not rising revenues, then cost cutting, moving production overseas, squeezing suppliers…. But what if revenues sag and earnings plunge, not for a bad-hair quarter, but for years, and the stock still balloons?
Another Canadian Oil Train Derailment Punctuates The Crude Transportation Debate
by Oilprice.com • • Comments Off on Another Canadian Oil Train Derailment Punctuates The Crude Transportation Debate
By Rory Johnston, of OilPrice.com: Early Saturday morning, a 134-car freight train carrying crude oil and liquefied petroleum gas derailed and exploded outside of Gainford, Alberta. The third such CN derailment in the past month. And three months ago, the tragic Lac-Mégantic disaster claimed 47 lives and incinerated the center of the town.
Exponential Increase of US Gross National Debt 1972-2013 (Chart)
by Wolf Richter • • Comments Off on Exponential Increase of US Gross National Debt 1972-2013 (Chart)
Why I’m So Worried About Japan’s Ballooning Trade Deficit
by Wolf Richter • • Comments Off on Why I’m So Worried About Japan’s Ballooning Trade Deficit
Trade is one of the critical elements in Abenomics. Devaluing the yen would boost exports and cut imports. The resulting trade surplus would goose the economy. But the opposite is happening. And it isn’t happening in small increments, with ups and downs, but rapidly and relentlessly. It’s not energy imports. They actually dropped! It’s a fundamental shift.