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Tag Archives: everything bubble

Is the Corporate-Debt Bubble Ripe Yet?

What does it mean when the Fed and other central banks jointly bemoan the effects of their own policies? Worried about not being able to keep all the plates spinning? This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: The Federal Reserve, the ECB, the individual central banks of Eurozone countries, such as the Bundesbank and the Bank of France, the central banks of negative-interest-rate countries outside the Eurozone, such as in Switzerland and Sweden, they’re...

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Brick & Mortar Meltdown Manhattan Style: Lenders Foreclose on Times Square Tower whose Six Retail Floors are 90% Vacant

Wow, that was fast: In default is a $650 million portion of a $2 billion loan package, signed in 2018. By Wolf Richter for WOLF STREET. “20 Times Square,” a newly built tower at 701 Seventh Avenue in Manhattan, has six retail floors, two underground and four above ground, totaling 75,000 square feet of rentable space. On top of the retail space is the 452 room Edition Hotel. Work started in 2015, when Manhattan’s brick-and-mortar retail properties were still flying high. The property...

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The Chilling Thing Subprime Retailer Conn’s Said About the Sudden Deterioration in New Accounts

Rising first-payment defaults and 60-day delinquencies, which are “leading indicators,” caused the retailer to become “prudent.” Shares plunged 33%. By Wolf Richter for WOLF STREET. Conn’s – a retailer with 137 stores in 14 states that sells household goods and electronics to subprime customers preferably financed at blistering interest rates or on a lease-to-own basis – had a five-year anniversary of a crash on December 10. Its shares plunged 33% on Tuesday after it reported earnings,...

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THE WOLF STREET REPORT: Is the Corporate-Debt Bubble Ripe Yet?

What does it mean when the Fed and other central banks jointly bemoan the effects of their own policies? Worried about not being able to keep all the plates spinning? (11 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. I appreciate it immensely. Click on the beer and iced-tea mug to find out how: Would you like to be notified via email when WOLF STREET publishes a new...

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Fed Goes Hog-Wild with T-Bills, But Repos Drop from a Month Ago, and MBS Shrink by $22 Bn

Bailing out its crybaby-cronies on Wall Street, even when there isn’t a crisis. By Wolf Richter for WOLF STREET. The total amount of repurchase agreements (“repos”) on the Fed’s balance sheet as of December 4, released today, declined to $209 billion, from $215 billion a month ago. These repos included: $70 billion in overnight repos, issued on Wednesday morning that unwound today; all prior overnight repos had already unwound. $88 billion in multi-day repos with maturities of up to...

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Inflation Is Coming: All the Trends That Were Deflationary Are Slowly Going in Reverse

But of all potential economic outcomes, the one least anticipated and least priced in, is an uptick in inflation. By Harris “Kuppy” Kupperman, founder of Praetorian Capital, Adventures in Capitalism: Investing is all about probabilities. If the perceived odds of an event are high, certain securities will be priced based on those expected probabilities. The corollary is that when an event is perceived as almost impossible, securities do not price in any chance of it occurring. If that...

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THE WOLF STREET REPORT: What’s Behind the Subprime Consumer Loan Implosion?

These are the good times, but why are subprime credit cards, auto loans, and short-term installment loans blowing out? (11 minutes) By Wolf Richter for WOLF STREET. 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. I appreciate it immensely. Click on the beer and iced-tea mug to find out how: Would you like to be notified via email when WOLF STREET publishes a new article? Sign...

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Fracking Blows Up Investors Again: Phase 2 of the Great American Shale Oil & Gas Bust

Including billionaires who thought they’d picked the bottom in 2016. By Wolf Richter for WOLF STREET. In 2019 through third quarter, 32 oil and gas drillers have filed for bankruptcy, according to Haynes and Boone. Since the end of September, a gaggle of other oil and gas drillers have filed for bankruptcy, including last Monday, natural gas producer Approach Resources. This pushed the total number of bankruptcy filings of oil and gas drillers since the beginning of 2015 to over 200....

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Chinese Stock Collapses 98% in Hours After MSCI Flip-Flops: How Index Providers Saddle US Pension Funds with Stock Scams

Despite my assurances that “Nothing Goes to Heck in a Straight Line,” a Chinese stock just did. I’m infamous for saying that “Nothing Goes to Heck in a Straight Line.” This piece of immortal wisdom even made it onto our official beer and iced-tea mugs. But today, I was proven wrong. A Chinese stock just went to heck in a straight line. ArtGo Holdings, a Chinese company that mainly quarries marble and processes it into blocks and polished slab and that has recently been trying to expand...

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Fear of “Reversal Rates” Sets in, Says the Fed

The fear that today’s negative or low interest rates render central banks helpless in face of the next economic crisis. This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: There is now a new theory cropping up in Fed-speak and more generally in central-bank speak. It’s not actually a new theory. I have been saying the same thing for years. In fact, it’s not even a theory, but reality. But it’s newly cropping up in reports from the Fed and the ECB. It’s the...

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