Everything Bubble

Will The Last Bear Please Turn Out The Lights

by Wolf Richter •  • Comments Off on Will The Last Bear Please Turn Out The Lights

When BlackRock CEO Larry Fink grumbled about “way too much optimism” in the markets, he wasn’t kidding. An entire mindset is benchmarking today’s record metrics against the splendor of 2000 and 2007: not to warn, but to prove that this time it won’t end in tears.

What Caused The Glorious Jump In Household Wealth (In One Insanely Good Chart) And Who Will Blow It Up Again?

by Wolf Richter •  • Comments Off on What Caused The Glorious Jump In Household Wealth (In One Insanely Good Chart) And Who Will Blow It Up Again?

The stock market has soared for five years, risks have ballooned, home prices have jumped. Gains built on the quicksand of endless liquidity and a lackluster economy. “Irrational exuberance” is back in the Fed’s vocabulary. As the Fed’s Fisher said, it may end “in tears.”

NASDAQ 10,000 – Or Something

by Wolf Richter •  • Comments Off on NASDAQ 10,000 – Or Something

“Paranormal liquidity stimulus” leads to “paranormal activity” to deliver that “parabolic overshoot” in asset prices. And there is no bubble in sight, not even in the Nasdaq Biotech index, which is up a cool 375%. Money is once again growing on trees.

Small Investors Exuberant, Margin Debt And Risk Of Crash Soar

by Wolf Richter •  • Comments Off on Small Investors Exuberant, Margin Debt And Risk Of Crash Soar

Small investors are having fun in the stock market again, after years of sitting out the most phenomenal rally. They’re leveraging up their portfolios. Margin debt is spiking beautifully. Alas, spiking margin debt has a nasty habit of ending in a crash. In one painful chart.

The Smart Money Quietly Abandons The Housing Market

by Wolf Richter •  • Comments Off on The Smart Money Quietly Abandons The Housing Market

National averages paper over gritty details on the ground and are a crummy indicator as to what is happening in specific metro areas. But even with this caveat, a national average suddenly sounded an alarm for the housing market: the smart money is bailing out.

California Housing Bubble: Now Even Teachers Can No Longer Afford To Buy A Home

by Wolf Richter •  • Comments Off on California Housing Bubble: Now Even Teachers Can No Longer Afford To Buy A Home

Teachers are a symbol of the middle class. In California, they earn on average $69,300 annually, fifth highest in the country. Not exactly a pittance. But it is a ludicrous pittance if they’re trying to buy a home.

Fed Lying About QE, Media Not Paying Attention

by Wolf Richter •  • Comments Off on Fed Lying About QE, Media Not Paying Attention

Since the introduction of QE 3, honest-looking Fed chairman Bernanke told the Wall-Street media circus after each FOMC meeting that the money-printing binge in the coming month would expand the Fed’s balance sheet by $85 billion. A fact cited worldwide. And a big lie.

IPO Highflyer Hits Sidewalk After Smart Money Bails Out

by Wolf Richter •  • Comments Off on IPO Highflyer Hits Sidewalk After Smart Money Bails Out

The IPO scene is sizzling: 25 pre-IPO startups, dogged by puny revenues and hefty losses, have “valuations” from $1 billion to $10 billion. But post-IPO debacles, even in the immensely hyped Cloud and Big Data sector, are already hitting the sidewalk.

Stinking Corporate Revenues, Desperately Doctored Earnings-Per-Share

by Wolf Richter •  • Comments Off on Stinking Corporate Revenues, Desperately Doctored Earnings-Per-Share

Last quarter was tough on large US corporations – those in the S&P 500 index. Unperturbed, the index soared all year. But its 343 companies that have reported so far have exposed the ugly underbelly of the worldwide economy: revenue “growth.”