After Huge Plunge, Treasury Yields Are Due for a Big Bounce on Monday. Here’s Why by Wolf Richter • Mar 18, 2023 • 269 Comments What we saw on Friday was large-scale fear of taking big uninsured deposits into a potentially gruesome FDIC weekend.
The Most Splendid Housing Bubbles in Canada: March Update on the Housing Bust by Wolf Richter • Mar 17, 2023 • 209 Comments Year-over-year, home prices plunged by the most on record as the seasonal uptick in prices was far smaller than a year ago.
Fed Loaned $160 Billion to Banks and $142 billion to FDIC. But QT-Related Roll-off Continued by Wolf Richter • Mar 16, 2023 • 281 Comments At around 4.75%, plus collateral, these are expensive loans for banks.
Defying Pivot-Mongers, ECB Hikes by 50 Basis Points, QT Continues, Explains Tools to Calm a Bank Panic while Fighting Inflation Simultaneously by Wolf Richter • Mar 16, 2023 • 129 Comments A hugely important concept: “There is no trade-off between price stability and financial stability.”
Retail Sales Dip a Tad in Feb after Huge Spike in Jan. Year-over-Year: +5.4% Despite Price Drops in Durable Goods & Gasoline by Wolf Richter • Mar 15, 2023 • 132 Comments Consumers are still spending like drunken sailors, especially online, now that they don’t have to blow so much on gasoline anymore.
First Republic Downgraded by S&P from Confidence-Inspiring-LOL “A-” Investment-Grade to BB+, One Itty-Bitty Notch into Junk. Shares, Bonds Re-plunge by Wolf Richter • Mar 15, 2023 • 133 Comments We laugh, but it’s a start. SVB Financial collapsed with investment-grade ratings.
Services Inflation Rages at Four-Decade High: Fueled by Rents, Auto Insurance, Repairs, Airfares, Hotels, Pet Services, Food Services, Delivery by Wolf Richter • Mar 14, 2023 • 228 Comments But durable goods prices drop, energy inflation eases, food inflation is less bad.
Free Money = Toxic Money: First Republic Bank and Western Alliance Bank Make it into my Pantheon of Imploded Stocks by Wolf Richter • Mar 13, 2023 • 302 Comments Banks as stock-pump schemes in the era of consensual hallucination.
Silicon Valley Bank’s Uninsured Depositors Bailed Out. Crypto Signature Bank Shut Down, All Depositors Bailed Out. Senior Execs Fired. All Shareholders, Some Bondholders Bailed In by Wolf Richter • Mar 12, 2023 • 581 Comments Treasury/Fed/FDIC issue joint statement with Tough Love for investors in failed banks.
SVB Financial had Investment-Grade Credit Ratings (Moody’s, S&P) up to Collapse. Got Slashed in One Fell Swoop to Default by Wolf Richter • Mar 11, 2023 • 325 Comments Not learned a thing since the Financial Crisis. Relying on ratings, preferred stock holders found themselves bailed in, bondholders got crushed.
