Wolf Richter

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

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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.

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

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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

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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

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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

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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.

Why My BS-O-Meter Redlined In The Minimum-Wage War

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“There is never a good time to raise the minimum wage,” explained Joseph Sabia, an associate professor of economics at San Diego State University. The Capitol Hill briefing was co-sponsored by the Employment Policies Institute, which is tied to the fast-food industry.

Stinking Corporate Revenues, Desperately Doctored Earnings-Per-Share

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Last quarter was tough on large US corporations – those in the S&P 500 index. Unperturbed, the index soared all year. But its 343 companies that have reported so far have exposed the ugly underbelly of the worldwide economy: revenue “growth.”

I’ve Hammered On Japan’s Fiscal Nightmare, Abenomics, TEPCO, And Debacles… But There’s More To Japan

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Dear Readers, friends, traders, gladiators, hard-working guys dreaming of retirement…. My personal relationship with Japan goes back to 1996, so here’s something different, something that isn’t cynical and harsh and dark, but appreciative and I hope enjoyable.

German High Court Blows Up Euro, Says ‘Oh Wait,’ Abdicates

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The ECB’s money-printing and bond-buying promise, lovingly dubbed Outright Monetary Transactions, became the bailing wire and duct tape that has kept the Eurozone together to this day. Turns out, it’s illegal under the EU treaties and unconstitutional in Germany.

Cracks In The Tech Bubble (That Doesn’t Exist)

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It’s “a technology everyone is going to have,” said a Bay Area real estate broker as he explained why realtors use drones to shoot aerial videos of high-end properties. And it’s illegal. But no one is going to be able to stop it, he implied.