Margin Debt Drops for First Time since March 2020, After Crazy Spike by Wolf Richter • Aug 16, 2021 • 68 Comments In the stock market, rising leverage fuels buying pressure; declining leverage fuels selling pressure.
THE WOLF STREET REPORT: What’s Behind this Messed-Up Bond Market? by Wolf Richter • Aug 15, 2021 • 141 Comments The total focus on the Fed. And then the Fed steps away.
$1.1 Trillion Flood of Liquidity from Drawdown of Treasury General Account Peters Out by Wolf Richter • Aug 7, 2021 • 201 Comments And as the Fed pumps out cash via QE on one side, it mops up $1 trillion in cash via reverse repos on the other.
State of the American Debt Slaves: Forbearance & Free-Money Phenomenon amid Soaring Prices of Homes & Autos by Wolf Richter • Aug 3, 2021 • 198 Comments Mass-forbearance is the best thing that ever happened to sweeping reality under the rug. But now, there’s a huge mess under the rug.
Bond Market Has Been Clueless about Inflation for Decades, Now More so Than Ever. The Meme the Drop in Yields = End of Inflation is a Fantasy by Wolf Richter • Jul 24, 2021 • 226 Comments Even before QE, the 10-year yield lagged years behind CPI, up and down. And now, the Fed manipulates the market with QE.
Buyers’ Strike? Mortgage Applications Drop 8% Below 2019, as Home Buyers Get Second Thoughts about “Raging Mania” by Wolf Richter • Jul 7, 2021 • 129 Comments First effect of MBS taper-talk from the Fed: Mortgage rates flat since late April even as long-term Treasury yields dropped.
Most Important Measure of Fed’s Economy: My “Per-Household Wealth Effect Monitor” for Q1, Based on Fed Data by Wolf Richter • Jun 21, 2021 • 266 Comments How the “Wealth Effect” benefits Americans individually.
A Glimpse at Hidden Stock Market Leverage of “Securities-Based Lending,” as Known Stock Market Leverage Spikes to WTF High by Wolf Richter • Jun 16, 2021 • 96 Comments We don’t know how much total leverage there is, but from the trends in margin debt, we know it’s huge and ballooning.
Subprime Auto-Loan Delinquencies, Which Had Exploded, Plunged after Stimmies. These Folks Are Now on Buyers’ Strike by Wolf Richter • Jun 12, 2021 • 136 Comments Investors in subprime auto-loan Asset Backed Securities should be genuflecting in front of US taxpayers to thank them for the backdoor bailout.
Surging Inflation No Problem, Junk Bond Yields Drop to Record Low, Dish out Negative “Real” Yields to Fed-Whacked Investors by Wolf Richter • Jun 11, 2021 • 273 Comments The market is broken. “Raging mania” rules.
