Companies & Markets

Cloud Wars: Now Even the CIA Slams IBM’s Technology

Our spoiled American tech heroes yearn to get those big-fat contracts with the Intelligence Community. But it seems IBM is far better at financial engineering than actual engineering.

This Happened Twice Before, And Each Time Stocks Crashed

In 2000 and 2007. The consequences were spectacular. Now, it happened a third time in fifteen years. And it’s forming an increasingly terrifying chart.

BlackRock: Russian Bond Market “Freezing Up”

“People thought sanctions were about visas for oligarchs wanting to visit Disneyland. But they are much more important.”

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.

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.

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.

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.