Many Americans spend every dime they make, and usually way beyond what they make. It’s not because they have confidence in the economy. They don’t! The gap in consumer confidence between these folks and those with higher incomes is at an all-time record!
by Wolf Richter • • Comments Off on ‘It’s Like We Have Developed An Inability To Even See Risks’
My convo with a wealth manager at a megabank who’s been at it for 30 years, has seen three crashes while on the job, but unlike others in finance, hasn’t re-forgotten the lessons for the third time.
by Wolf Richter • • Comments Off on UBS: The Secret Reason The Fed Is ‘Tolerating’ Bubbles
“Asset prices have reached stunning levels, obviously out of line with ‘fundamentals.’ The “most dangerous” are housing bubbles; when they burst, they “wreck whole economies.”
by Wolf Richter • • Comments Off on Federal Regulator Details Crazy Risk-Taking By Banks, Blames Fed
Banks are again taking the same risks that triggered the financial crisis, and they’re understating these risks. It wasn’t an edgy blogger that issued this warning but the Office of the Comptroller of the Currency. And it blamed the Fed’s monetary policy.
by Wolf Richter • • Comments Off on Just How Crazy Is The Biggest Credit Bubble in History? See The Doomed Muni Tobacco Bonds In Your Conservative Bond Fund
Ah, the spine-tingling pleasures of having this delicious breed of bonds in your conservative-sounding bond fund.
by Wolf Richter • • Comments Off on Investment Bank: The End Of US Economic Growth
“We fear that, once the effects of monetary stimulus disappear in the US, the weakness of the economy due to income inequalities may suddenly be revealed.”
by David Stockman • • Comments Off on Canary In A Handbag: Why Coach Hit The Skids
Coach just had an earnings fiasco. Sales plunged 21%. Prospects are worse for the period ahead. Store closings are coming. That’s the payoff for playing the destructive game of the Wall Street casino.
