by Wolf Richter • • Comments Off on Russian Bank Lures German Savers As Russians Yank Out Money
Smart Russians are voting with their bank accounts, dumping rubles at the fastest rate since the financial crisis, and yanking dollars and euros out of banks at a record pace. So where do the teetering banks go to refill these holes? Where the dumb money is: German savers.
by Wolf Richter • • Comments Off on The Brutal, Beneath-the-Surface, Slo-Mo Crash of Stocks
Even while the googly-eyed mainstream media celebrate the Dow’s record high, beneath the gloss, thousands of stocks are getting gutted. And the carnage is spreading.
by Wolf Richter • • Comments Off on When $1.2 Trillion In Foreign Bank Funds In The US Dissipate
It fits the pattern of gratuitous bank enrichment perfectly. This time, the big beneficiaries of the Fed are foreign banks. An unintended consequence, with big impact on the “recovery.”
by Wolf Richter • • Comments Off on Explosive Hidden Leverage Threatens To Blow Up the Markets
We don’t know what hedge fund manager Steven Cohen will do with the money he borrowed from Goldman Sachs. We don’t even know how much it is, though it’s a lot; the personal loan is backed by his $1 billion art collection. But we know how he’ll use it: cheap leverage.
by Wolf Richter • • Comments Off on Banks And Hedge Funds Make Curious Deal On New Structured Toxic-Waste Securities
New regulations force banks to get rid of CLOs. They’re similar to subprime-mortgage-backed CDOs that blew up in 2008. But CLOs are backed by junk corporate loans, including malodorous “leveraged loans.” And they’re booming again. So the banks made a deal.
by Wolf Richter • • Comments Off on Biggest Credit Bubble in History Cracks, Trips Up The Smart Money
For years, nothing could slow the tsunami of junk debt. But suddenly, something happened, and investors in leveraged-loan mutual funds, where the crappiest junk debt accumulates, ran scared and started pulling their money out. Consequences were immediate.
by Wolf Richter • • Comments Off on The Last Two Times This Happened, The Stock Market Crashed
It happened in 2000 and in 2007. With spectacular consequences. Now, it happened again. And hidden beneath the blue-chip highs, parts of the market are already crashing.
by Wolf Richter • • Comments Off on Housing in Six Cities in the West
That’s how it always starts: with a deadly mix. Home sales are collapsing while inventories are soaring in six housing markets that had been white-hot just a few months ago.
