Monthly Archives: February 2014

The Madness of Abenomics In One (Crazy) Chart

by Wolf Richter •  • Comments Off on The Madness of Abenomics In One (Crazy) Chart

Abenomics, a democratically elected economic religion, was to save Japan. But the plan has already gone to heck. Not in small increments over the years with minor ups and downs, but in relentless month-to-month leaps whose viciousness surprised even the deep cynic in me.

Housing Bubble II: What’s Ruining Home Sales? Not The Weather!

by Wolf Richter •  • Comments Off on Housing Bubble II: What’s Ruining Home Sales? Not The Weather!

OK, I get it. Life-threatening cold temperatures, polar vortices, and snow mayhem can put a damper on home construction, mortgage applications, first-time buyers, and home-builder confidence. But they also plunged on the West Coast where the weather was gorgeous.

The Young Subprime Debt-Slave Generation

by Wolf Richter •  • Comments Off on The Young Subprime Debt-Slave Generation

Rising household debt would be a hopeful sign that consumers are again living beyond their means, finally spending money they don’t have in a heroic effort to stimulate Wall Street, corporate earnings, and the Fed’s self-esteem. So we jubilate. We’ve waited for it too long.

Fed Lying About QE, Media Not Paying Attention

by Wolf Richter •  • Comments Off on Fed Lying About QE, Media Not Paying Attention

Since the introduction of QE 3, honest-looking Fed chairman Bernanke told the Wall-Street media circus after each FOMC meeting that the money-printing binge in the coming month would expand the Fed’s balance sheet by $85 billion. A fact cited worldwide. And a big lie.

The Mind-Game Of “Fixing” Europe’s Big Zombie Banks

by Wolf Richter •  • Comments Off on The Mind-Game Of “Fixing” Europe’s Big Zombie Banks

Danièle Nouy, chair of the ECB’s newfangled bank regulator that doesn’t exist yet, had a term for it: “do whatever has to be done” so that the banking sector “is seen as sound and safe and transparent.” Is seen as…. Smoke and mirrors.

Obama Furiously Pushes Secret Trade Deal, Opposition Grows

by Electronic Frontier Foundation •  • Comments Off on Obama Furiously Pushes Secret Trade Deal, Opposition Grows

By Maira Sutton, Electronic Frontier Foundation: Under pressure from multinational corporations, the White House wants authority from Congress to run over Congress’ constitutional powers. The zany, secretive power play of trade deals.

“Foreclosure Rebound Pattern”: Foreclosures SUDDENLY Jump 57% in California (And Soar In Much Of The Country)

by Wolf Richter •  • Comments Off on “Foreclosure Rebound Pattern”: Foreclosures SUDDENLY Jump 57% in California (And Soar In Much Of The Country)

The cynic in me says the dizzying jump in foreclosure starts in January in much of the country, after years of sharp and consistent declines, must be some kind of data problem. Maybe RealtyTrac’s computers got hacked, or something. But that’s wishful thinking.

No Crisis? France’s Private Sector In Deeper Trouble Than In 2009

by Wolf Richter •  • Comments Off on No Crisis? France’s Private Sector In Deeper Trouble Than In 2009

His US visit might give the French President the boost he sorely needs at home, because at home, things are getting mired down. The economy shriveled or had no growth in five of the last eight quarters. The dominant government sector is well, but businesses are failing in record numbers.

California MUST Have Magnificent, Endless Bubbles in Housing, Stocks, And IPOs – Or Go Broke Again

by Wolf Richter •  • Comments Off on California MUST Have Magnificent, Endless Bubbles in Housing, Stocks, And IPOs – Or Go Broke Again

My beloved state of California, whose $2 trillion economy is the eight largest in the world ahead of Italy and Russia, has a new problem: it’s awash in cash. It’s projecting multi-billion dollar surpluses for years to come. The feeding frenzy in Sacramento is a sight to behold.

IPO Highflyer Hits Sidewalk After Smart Money Bails Out

by Wolf Richter •  • Comments Off on IPO Highflyer Hits Sidewalk After Smart Money Bails Out

The IPO scene is sizzling: 25 pre-IPO startups, dogged by puny revenues and hefty losses, have “valuations” from $1 billion to $10 billion. But post-IPO debacles, even in the immensely hyped Cloud and Big Data sector, are already hitting the sidewalk.