Wolf Richter

So This Isn’t Exactly A Rosy Outlook For 2014, Or Something

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Central banks rule! We’ve seen it in 2013. They’ve accomplished the impossible: separating stock markets from the economies they’re based on. But in 2014, the US and China are trying to unwind these crazy policies – without taking down the entire global economy.

Cracks Forming In Housing Bubble II (But This Time It’s Different)

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Number one is Palo Alto, epicenter of Silicon Valley craziness, where home prices are now 40% higher than they were at their prior bubble peak. What are we calling this phenomenon? Bubble? Nope. “Housing recovery.” But the middle class has hit a wall.

LEAKED Confession: Cesspool Of Greek-German Corruption

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Apparently, it has been impossible to sell Greece any weapons at all, not even a water pistol, without bribing officials at the Defense Ministry. But it takes two to tango. And in holier-than-thou Germany, the defense industry has been all too eager to dance with Greece.

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.