UK Chaos Economics: Fretting over “Financial Stability” & “Contagion” after Gilts Plunged, Bank of England Buys Bonds by Wolf Richter • Sep 28, 2022 • 258 Comments It wasn’t big hedge funds that blew up, but £1.5 trillion in leveraged pension funds. BoE stepped in to bail them out and prevent further contagion.
My “Wealth Disparity Monitor”: QT, Rate Hikes, Dropping Stocks & Bonds Reduce Outrageous US Wealth Disparity by Wolf Richter • Sep 26, 2022 • 293 Comments Wealth of the “Top 0.1%” drops by $12 million per household; the wealth of the “Bottom 50%,” who have nearly nothing, rises.
UK Bond Yields Do Monster Spike, Pound Plunges as Bond Vigilantes Rise from Graves, Go after Government’s Fiscal Recklessness by Wolf Richter • Sep 26, 2022 • 127 Comments Bank of England: won’t “hesitate” to hike rates “as much as needed.” Bond market fears much higher inflation and interest rates, for much longer.
The Bear-Market Rally in Stocks, Bonds, Mortgages Wiped Out: Why This Nails the Parallel to the Dotcom Bust by Wolf Richter • Sep 25, 2022 • 336 Comments But this time, there’s over 8% inflation.
To Compete with Spiking Treasury Yields, Banks Now Offer 4%+ on “Brokered” CDs of 6 Months to 5 Years by Wolf Richter • Sep 23, 2022 • 210 Comments Holy-moly mortgage rates close in on 7%.
The Day Wall Street’s Narrative of “Inflation is Over” Fell Apart: A Sea of Red by Wolf Richter • Sep 13, 2022 • 221 Comments But for yield investors: Short-term Treasury yields near 4%. Six-month CD yields at 3.5%, if you shop around.
The Holy-Moly 6.25% Mortgage is Back, Treasury Yields Spike, Summer Bear-Market Rally Unwinds by Wolf Richter • Sep 6, 2022 • 204 Comments In terms of diversification between stocks and bonds, there is none. Not anymore. They even nailed the bear market rally in lockstep.
“Furthermore,” This Could be the End for Investors, Says Avaya, the Lucent Spinoff. Shares & Bonds Collapse Five Years after it Emerged from Bankruptcy by Wolf Richter • Aug 9, 2022 • 115 Comments Wait a minute… Six weeks ago, Goldman Sachs & JP Morgan talked investors into buying $600 million of new debt.
Leverage v. Stock Market “Events”: Margin Debt Plunged in June by Wolf Richter • Jul 19, 2022 • 96 Comments Few took the warning seriously that margin debt issued last year.
Can the Government Even Pay the Rising Interest Expense on its Gigantic Debt as the Fed Pushes up Rates? Yes. Here’s Why by Wolf Richter • Jun 27, 2022 • 282 Comments Higher rates eventually enforce a sort of discipline on the drunken party in government and even in the private sector. That would be a good thing.
