Friday , October 18 2019
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Tag Archives: everything bubble

There Are a Couple of Things Not Coming Together Here

I Get it: Stock-Market Shorts Sit on Sideline, Fearing Rally. Investors Deleverage, Fearing Sell-Off. VIX Falls Asleep, Fearing Nothing. Of the total shares outstanding of the SPDR S&P 500 ETF, only 2.6% were out on loan to short sellers this week, the lowest since early October 2018, and down from 7% during the summer, according to IHS Markit data cited by Bloomberg. Meaning that short-sellers who want to short the entire market, and not specific companies, are worried that the...

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Why Banks Didn’t Lend to the Repo Market When Rates Blew Out: JPMorgan CEO Dimon

“Does that mean that we have bad markets?” This still doesn’t show who or what triggered the fire in the repo market in mid-September when overnight lending rates more than quadrupled and briefly hit 10%, but it confirms who sat there and watched the fire and fanned it though they could have extinguished it. During the earnings call today, JPMorgan Chase CEO Jamie Dimon told analysts that the bank had $120 billion in cash on deposit at the Fed in the morning of those days, and that...

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10-Year Yield Jumps, Yield Curve Steepens, on Fed’s Plan to Buy $60 Billion a Month, But Only Short-Term Treasury Bills

Ending the repo market blowout and un-inverting the yield curve. Since Fed Chair Jerome Powell’s initial explanation of the Fed’s new plan, and with a big push this morning from the Fed’s announcement of the actual details of the plan, the 10-year Treasury yield has jumped 23 basis points, from 1.52% when he was speaking on Tuesday to 1.75% at the moment. And the yield curve has steepened and is getting close to un-inverting. Here is what happened. The New York Fed released a statement...

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How the Crybabies on Wall Street Try to Force the Fed into QE-4

The repo blow-out — whoever instigated it — comes in real handy. Fed Chair Jerome Powell’s explanation on Tuesday and the FOMC minutes released yesterday were a bitter disappointment for the Crybabies on Wall Street – the broker-dealers and banks: They’d expected a massive bout of QE, and perhaps some of the players had gleefully contributed to, or even instigated the turmoil in the repo market to make sure they would get that massive bout of QE as the Fed would be forced to calm the...

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How the SoftBank Scheme Rips Open the Startup Bubble

This scheme worked wonders for a while but has now run into trouble, and a lot is at stake. This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: The biggest force behind the startup bubble in the United States has been SoftBank Group, the Japanese publicly traded conglomerate. It has been the biggest force in driving up valuations of money-losing cash-burn machines to absurd levels. It has been the biggest force in flooding Silicon Valley, San Francisco, and many...

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When Was Peak-Insanity of the Unicorn-Startup Bubble That’s Now Imploding?

WeWork was just late to the defenestration party. Everyone – including infamously me – has been trying to pinpoint the exact moment when the magnificent startup-unicorn-bubble broke, and I mean not just broke but imploded spectacularly. All of the biggest upcoming IPOs were cancelled. All the biggest ones that got out the IPO window this year crashed and burned. And the $47-billion WeWork unicorn is now awaiting dismemberment or a bailout from Softbank after its IPO hopes were...

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THE WOLF STREET REPORT: How the SoftBank Scheme Rips Open the Tech Bubble

The biggest force behind the startup bubble in the US has been SoftBank. But the scheme has run into trouble, and a lot is at stake (12 minutes). Enjoy reading WOLF STREET and want to support it? Using ad blockers – I totally get why – but want to support the site? You can donate “beer money.” I appreciate it immensely. Click on the beer mug to find out how: Would you like to be notified via email when WOLF STREET publishes a new article? Sign up here.

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IPOs Crash & Burn, Debris Hits Housing, Office Markets

Signs are now all over Silicon Valley and San Francisco. This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: OK, here’s a sobering thought. Some of the biggest IPOs in 2019 trade at record lows and all of the biggest IPOs have seen their shares plunge from their peaks. All of these companies have growing revenues but huge losses that in many cases are growing faster than revenues. But they still sport gigantic market valuations, meaning that there is a lot more...

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US Gross National Debt Jumps by $1.2 Trillion in Fiscal 2019, to $22.7 Trillion, Hits 106.5% of GDP

But what happens if there’s actually a recession? The US gross national debt jumped by $110 billion on the last two business days of Fiscal Year 2019, and by a breath-taking $1.2 trillion during the entire fiscal year, after having already jumped by $1.27 trillion in Fiscal 2018, the Treasury Department reported today. This ballooned the US gross national debt to a vertigo-inducing $22.72 trillion. These beautiful trillions whipping by are a joy to behold: so much action in so little...

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Silicon Valley Is Slowing, Whether for a Quick Breather or Extended Time-Out, I Have No Idea (Guessing the Latter)

Strongest argument in favor of an air-walking economy is WeWork, Uber, Lyft, and other unicorns destined to never make a dime. Throwing billions of dollars at these losers is a recessionary harbinger. By John E. McNellis, Principal at McNellis Partners, for The Registry: It is a well-established law of cartoon physics that characters may walk on air as long they are unaware of doing so. Once Bugs Bunny realizes he’s airborne, however, gravity reasserts itself, and he plummets to earth....

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