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Home / Tag Archives: everything bubble (page 10)

Tag Archives: everything bubble

Swiss National Bank’s Monetary Racket, US Stock Holdings & the Wild Ride of its Own Shares

We’ll also look at its garbage pile at the bottom. These folks don’t even pretend to be stock pickers. They buy and let it stick till it falls off on its own. The Swiss National Bank, which filed its disclosure of US stock holdings today with the SEC, has figured out the best money racket of all times. It works because currency speculators are eagerly gobbling up Swiss francs. In January 2015, the SNB started to print Swiss francs ostensibly to depress the value of the CHF, a tiny...

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THE WOLF STREET REPORT: How the Fed Boosts the 1%, as Told by the Fed

Even the upper middle class loses share of household wealth to the 1%. The bottom half gets screwed. 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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Negative Yielding Bonds Turn into Punishment Bonds

After peak negative-yield-absurdity in August, bond prices fell – the “bond bloodbath” – and the mountain of bonds with negative yields has plunged by $5 Trillion, or by 30%, despite rate cuts. The 10-year US Treasury yield rose on Friday to 1.94%. That’s still very low, and below inflation as measured by core CPI (2.4%), but it’s up nearly 50 basis points from the lows at the end of August. During this time, the Fed has cut its interest rate target twice, by a total of 50 basis...

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The State of the American Debt Slaves, Q3 2019

Paying the University-Corporate-Financial Complex and the big bifurcation. Student-loan balances jumped by 5.1% in the third quarter compared to Q3 last year, or by $80 billion, to a new horrifying record of $1.64 trillion, having skyrocketed by 120% in the 10 years since Q3 2009, according to Federal Reserve data released Thursday afternoon. Over the same 10-year period, when student loans soared 120%, the Consumer Price Index has increased 19%. Student loan balances are 7.6% the size...

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Fed Goes Nuts with Repos & T-Bills but Sheds Mortgage Backed Securities

The fastest increase in assets for any two-month period since the post-Lehman freak show in late 2008 and early 2009. Total assets on the Fed’s balance sheet, released today, jumped by $94 billion over the past month through November 6, to $4.04 trillion, after having jumped $184 billion in September. Over those two months combined, as the Fed got suckered by the repo market, it piled $278 billion onto it balance sheet, the fastest increase since the post-Lehman month in late 2008 and...

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What’s Behind the Fed’s Bailout of the Repo Market?

Whose Bets are Getting Bailed Out by the Fed’s Repos & T-Bill Purchases? This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: The repo market blew out in mid-September. It had already briefly blown out at the end of 2018, then settled back down. But the issues started bubbling up again. By the end of July, the repo problems made their way into the Fed’s meeting, as we learned when the minutes of that meeting were released in August. The repo market is huge....

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Yield Curve Un-Inverts, 10-Year Yield Spikes, Middle-Age Sag Disappears

Yield Curve Spaghetti! It happened. Hallelujah. Or maybe better: Watch Out! The yield curve, after having been at least partially inverted all year, un-inverted today. The yield curve still kind of flat at the short end, but the middle-aged sag is gone, and the long end with maturities of seven years and up is higher than the short end. It’s not exactly spectacularly steep, but all the long-dated yields are higher than the shorter-dated yields. The chart shows the yield of each...

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Leveraged-Loan Downgrades Spike, Collateralized Loan Obligations Get Cold Feet, Selloff in B-Rated Loans Ensues

“Sell first, ask questions later.” The $1.2-trillion US leveraged loan market is starting to get downgrade-indigestion. So far this year through October 11, of the 1,460 leveraged loans in the S&P/LSTA Index, 282 issues were downgraded, already exceeding the 244 downgrades for the entire year of 2018, and blowing past the 33 downgrades in 2017, according to LCD of S&P Global Market Intelligence. On a rolling three-month basis, the ratio of downgrades-to-upgrades spiked to 4.9,...

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Uber Loses Another $1.2 billion, Stock Dives Again

Burning cash is easy; It’s quite flammable and just goes up in smoke. Here it is in a nutshell, the philosophy of “growth at all costs.” Uber’s total revenue increased 29% to $3.81 billion in the third quarter compared to a year earlier, the company reported this afternoon. And that’s very good revenue growth. But to get this revenue growth, the company threw everything at it that it had. So, expenses increased even faster, and the operating loss ballooned. Revenues by segment:...

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What Will Stocks Do When “Consensual Hallucination” Ends?

The phenomenon works – until it doesn’t. What’s astonishing is how long it works. This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: There is a phenomenon in stock markets, in bond markets, in housing markets, in cryptocurrency markets, and in other markets where people attempt to get rich. It’s when everyone is pulling in the same direction, energetically hyping everything, willfully swallowing any propaganda or outright falsehood, and not just nibbling on it,...

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