Everything Bubble

The Last Two Times This Happened, The Stock Market Crashed

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.

Who Is Getting Crushed in This Bull Market?

by Wolf Richter •  • Comments Off on Who Is Getting Crushed in This Bull Market?

By now, this wondrous bull market constantly gets benchmarked against the dotcom bubble. It’s different this time, we’re told, even on NPR. But the wholesale destruction of financial assets has already started, one pocket at a time.

Wall Street’s “Escape Velocity” Hoax

by David Stockman •  • Comments Off on Wall Street’s “Escape Velocity” Hoax

Q1 GDP growth is trending at a tepid 1.5%. But don’t worry. It’s the weather! Wall Street is predicting “escape velocity” for the fifth spring-summer in a row. Why? Because it’s already priced into the stock market!

This Chart Is A True Picture of The Bank Credit Bubble In America, Now Bigger Than The Last One (Which Blew Up)

by Wolf Richter •  • Comments Off on This Chart Is A True Picture of The Bank Credit Bubble In America, Now Bigger Than The Last One (Which Blew Up)

For a while, rumor had it that banks weren’t lending, and that this was the reason the recovery has been so crummy. There was no demand for loans, and banks were too tight with their lending standards. Or so the story went.

Biggest Credit Bubble in History Runs Out Of Time

by Wolf Richter •  • Comments Off on Biggest Credit Bubble in History Runs Out Of Time

Yield investors, driven to insanity by the Fed’s interest-rate repression, hold their noses and close their eyes to scrape up even the crappiest paper just to get a little extra yield. “On the way in, there’s insatiable demand.” Alas, “it’s going to be a disaster on the way out.”

Richest 200 Moguls Made $13.9 Billion Today

by Wolf Richter •  • Comments Off on Richest 200 Moguls Made $13.9 Billion Today

Bernanke doesn’t regret any of the Fed’s actions, he said, except not explaining them to the people. They “really don’t understand why we did what we did,” he said. But there are a few people who do understand.

Biggest Credit Bubble in History Flashes Warning: ‘Seek Cover’

by Wolf Richter •  • Comments Off on Biggest Credit Bubble in History Flashes Warning: ‘Seek Cover’

Hidden in the IMF’s Global Financial Stability Report is a doozie of a chart. “Seek cover, implosion in sight,” it screams. It depicts the bubble in covenant-lite and second-lien loans, the same that helped blow up the banks in 2008. Only this time, they’re even worse.

Stocks on Speed: Leverage Spikes, As Does Risk Of Crash (Look at that Insane Chart!)

by Wolf Richter •  • Comments Off on Stocks on Speed: Leverage Spikes, As Does Risk Of Crash (Look at that Insane Chart!)

Margin debt is a crummy predictor of a crash. But it has a bone-chilling habit of peaking right around the time stocks do crash. In the last fifteen years, it spiked three times: during the final throes of the bubbles that imploded in 2000 and 2007; and now.