The bond-fund massacre is spectacular. Antsy investors yanked $7.7 billion in August out of the world’s largest bond fund, Pimco’s Total Return Fund. In July, they’d yanked out $7.5 billion, in June $14.5 billion. From May 1 through August 31, the fund’s assets shriveled 14%. Other bond funds got hit too. And September is shaping up to be even worse.
Massive Mission Creep In War On Syria (Already!)
by Wolf Richter • • Comments Off on Massive Mission Creep In War On Syria (Already!)
An American attack on Syria would just be a punitive action for the gruesome gas attacks. “Regime change” wouldn’t be part of it. That was the idea. Now the Senate Foreign Relations Committee voted to authorize President Obama to wage war on Syria, but amendments suddenly set new goals – smack-dab in the middle of a distant lala-land.
The Big Shift: Chinese, Russians Replace People From (Formerly) Rich Countries As Big Spenders At Parisian Airports
by Wolf Richter • • Comments Off on The Big Shift: Chinese, Russians Replace People From (Formerly) Rich Countries As Big Spenders At Parisian Airports
In Paris, “Chinese” has a new meaning: money. This phenomenon shows up by the busload at luxury retailers where sales staff say a few words of bad Mandarin, instead of bad English, in hawking overpriced handbags and glittery baubles. Now Aéroports de Paris has put a number on it. A glimmer of hope for France, though perhaps of the wrong kind.
Bad Hair Day In Two Decades Of German Retail Sales Quagmire
by Wolf Richter • • Comments Off on Bad Hair Day In Two Decades Of German Retail Sales Quagmire
Germany’s industrial conglomerates and the vibrant Mittelstand (privately held enterprises that were world leaders in their niche until the Chinese came along), decorated with real wage declines since the heyday of Reunification… all have been bandied about as economic model for troubled, if unenthusiastic Eurozone countries. But there is a darker side.
Abenomics Wins: Budget And Inflation Both Jump (Over The Cliff)
by Wolf Richter • • Comments Off on Abenomics Wins: Budget And Inflation Both Jump (Over The Cliff)
It would be ridiculous if it weren’t so sad: Facing exploding budget deficits and an uncircumnavigable mountain of debt over twice the size of the economy – Japan’s two largest economic problems – the government in its blind devotion to the religion of Abenomics screams, “Damn the torpedoes, full speed ahead.”
German Election Finally Gets Messy: “Euro Is More Than A Currency” And Greece “Shouldn’t Have Been Allowed In”
by Wolf Richter • • Comments Off on German Election Finally Gets Messy: “Euro Is More Than A Currency” And Greece “Shouldn’t Have Been Allowed In”
No debacle is allowed to interfere with Chancellor Merkel’s efforts to hang on to her job, and debacles get swept under the rug at least until after the elections on September 22. Every time uppity opposition voices stir up some controversy, it’s brushed off, denied, ridiculed, or minimized – and it has worked admirably well so far. But suddenly there’s Greece again.
Deluded Optimism in Corporate Earnings Growth (Now Shriveling)
by Wolf Richter • • Comments Off on Deluded Optimism in Corporate Earnings Growth (Now Shriveling)
These wildly optimistic estimates of earnings growth that analysts work on so studiously by copying and pasting what companies tell them, or by doing channel checks and poking around the industry, and that companies have to exceed at all costs “on an adjusted basis?” Well, they have been shrinking for 2013 – but only after reality forced them down.
The Undead Corporate Welfare Programs For Automakers
by Wolf Richter • • Comments Off on The Undead Corporate Welfare Programs For Automakers
They’re at it again! Originally created by Congress in 2007, the Advanced Technology Vehicle Manufacturing Program provided low-cost government loans that were subsidized, and then in part eaten as we now know, by hapless and strung-out American taxpayers. In 2011, it was left behind as dead, but now the government wants to bring that zombie back.
Stocks: “Drastic Correlation Between Printing and Pumping” – And What It means When The Printing Ends
by Wolf Richter • • Comments Off on Stocks: “Drastic Correlation Between Printing and Pumping” – And What It means When The Printing Ends
German Gov. CONFIRMS: Key Entities Not To Use Windows 8 with TPM 2.0, Fearing Control by ‘Third Parties’ (Such As NSA)
by Wolf Richter • • Comments Off on German Gov. CONFIRMS: Key Entities Not To Use Windows 8 with TPM 2.0, Fearing Control by ‘Third Parties’ (Such As NSA)
I expected the German Federal Office for Information Security (BSI) to contact me in an icily polite manner and make me recant, and I almost expected some goons to show up with an offer I couldn’t refuse, and I half expected Microsoft to shut down my computers remotely and wipe out my data. But none of that happened. Instead, the BSI confirmed the key points.