Wolf Richter

Next Shoe to Drop in Broke California’s Lopsided ‘Recovery’

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If you come to San Francisco or Silicon Valley and look around, you’d think California is booming, that companies jump through hoops to hire people, that they douse them with money, stock options, and free lunches. And some do. But in other parts of the state?

What Happens Next, Now That The 10-year Treasury Yield Hit The Psycho-Sound Barrier Of 3%

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Treasuries have been skidding, and the 10-year yield hit the psycho-sound barrier of 3%. What happened last time this phenomenon occurred? Well, yields bounced off and fell – because the mayhem they’d triggered gave the Fed conniptions and caused it to back off.

When Soaring Margin Debt, Sign of Investor Confidence, Turns Into A Nightmare On Steroids

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There have been three mega-crashes in my investing lifetime, and three concurrent peaks in margin debt. In April, margin debt broke the record set in 2007 and has continued to rise. Over the last three months, it has soared 10.9%. Are we there yet?

No Money, No Problem, Bank of Japandemonium Takes Care Of It

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Just before Christmas when no one was supposed to pay attention, Japanese Prime Minister Shinzo Abe and his ministers agreed on a budget for fiscal 2014. It’s a doozy. Instead of slowing down the fiscal fiasco, Abenomics is speeding it up. With an elegant solution.

Financial Engineering Wildest Since The 2007 Bubble

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Financial engineering had a glorious year. Now finally, after five years, the crazy fun is back, and the good thing is: this time, it’s different. This time, the smart money is selling!

This Ends In A “Planned Economy” – Bundesbank President

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When Jens Weidmann, President of the emasculated Bundesbank, speaks, central bankers and money printers worldwide stuff wax into their ears. “Caution,” he started out, “the euro crisis is far from over.” Then he committed central-bank heresy.

The Natural Gas Glut Is, Like, So Over. Price Soars!

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Someone must have known something. Natural gas jumped 2% before the Department of Energy released its Weekly Natural Gas Storage Report at 10:30 a.m. Normally, the report sends gas futures gyrating up or down. Today, they gyrated up from the start of trading.

The Multi-Pronged Mortgage Debacle Next Year (So Long, “Housing Recovery”)

by Wolf Richter •  • Comments Off on The Multi-Pronged Mortgage Debacle Next Year (So Long, “Housing Recovery”)

Now part three, after soaring home prices and mortgage rates. It was drowned out by the hullaballoo over the Fed’s taper announcement. It came from Fannie Mae and Freddie Mac. It will drive up mortgage payments even more.

Junk-Debt Time Bomb: Ticking Till The Fed’s Money Dries Up

by Wolf Richter •  • Comments Off on Junk-Debt Time Bomb: Ticking Till The Fed’s Money Dries Up

Discount retailer Loehmann’s did what other retailers – and a large number of other junk-rated companies – will do once the Fed allows a sense of reality into the markets: it filed for bankruptcy. Investors had refused to fund further losses.