Despite Banking Turmoil, ECB Accelerates QT plus Hikes by 25 Basis Points. Balance Sheet Plunged by €1.12 Trillion so Far by Wolf Richter • May 4, 2023 • 36 Comments “We’re not pausing, that’s very clear,” Lagarde said. “We know we have more ground to cover.”
Powell Swats Down Rate Cut in 2023, Purposefully Leaves in Doubt a “Pause” for June Meeting by Wolf Richter • May 3, 2023 • 132 Comments “We’re going to be looking at those factors to determine whether there is more to do.”
Here’s the Great Deal JP Morgan Got on First Republic, according to JP Morgan’s Victory Lap in front of Investors by Wolf Richter • May 1, 2023 • 183 Comments A one-time “bargain purchase gain” of $2.6 billion, “over $500 million” in net income accretion, lots of other goodies amounting to an IRR of “over 20%.”
Spring Selling Season Already Goes to Heck, Pending Home Sales Plunge. Banking Crisis to Blame? by Wolf Richter • Apr 27, 2023 • 101 Comments A harbinger for closed sales in April and May.
Consumers, Governments Spent like Drunken Sailors in Q1. Private Investment Plunge & Inventory Change Dogged GDP by Wolf Richter • Apr 27, 2023 • 71 Comments Americans came out of their funk they’d been in late last year. They’re 70% of GDP. They blew money left and right; spending on durable goods spiked!
What Are We Going to Do with All these Unicorns? by Wolf Richter • Apr 26, 2023 • 91 Comments Another Easy-Money hangover.
Second PE-Firm-Owned Subprime Auto Dealer & Lender Suddenly Shuts Down after its Subprime Auto-Loan Bonds Make a Huge Mess by Wolf Richter • Apr 18, 2023 • 127 Comments “Net losses and gross charge-offs were understated” – Oopsie?
Another CRE Giant, Brookfield again, Defaults on Floating-Rate Office Mortgage. Again, CMBS Get this Mess, Not Banks by Wolf Richter • Apr 18, 2023 • 66 Comments Maybe banks, instead of keeping the riskiest CRE loans, securitized them? Would be a hoot to find out over the next few years as this plays out.
What Would Happen if the Fed Caves to 4%-5% Core PCE Inflation, Gives up on 2%, as some Folks are Clamoring For? by Wolf Richter • Apr 16, 2023 • 349 Comments The economy would muddle through, but in the markets, all heck would break loose. Here’s why.
Banks and Commercial Real Estate Debt, a Deep Dive: Investors and Government on the Hook for the Majority of CRE Debt by Wolf Richter • Apr 10, 2023 • 95 Comments Retail CRE debt has been crappy since 2017, and banks managed without collapsing. Now Office goes to heck. Multifamily, the biggie, is following.
