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Tag Archives: everything bubble

Airline Stocks, Battered by Coronavirus & Boeing 737 MAX, Plunge to Four-Year Low

Boeing got battered too but not nearly enough. Introducing my SADJAUS stock index tracking the 7 largest US airlines. By Wolf Richter for WOLF STREET. Boeing shares dropped 5.8% today, to $287.76, below where they’d been on that infamous December 24, 2018, and back to where they’d been on December 12, 2017. My only question to the market today is this: What took so long? Boeing’s self-inflicted problems have been dissected to the nth degree – including how it blew, wasted, and...

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Stocks Plunge (or Dip?), Traders Confused: This Wasn’t Supposed to Happen. Complacency Exacts its Toll

The coronavirus is just the latest in a long series of issues successfully brushed off as irrelevant because all that mattered was that stocks went up. By Wolf Richter for WOLF STREET. “Complacency” – brushing off big issues as irrelevant or nonexistent because they don’t fit into the buy-buy-buy scenario – has a way of serving up a surprise tab just when the party is hopping at its wildest. Today, we’re seeing a little of it. Already on Friday, some fallout had hit stocks, following a...

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Subprime Credit Card Delinquencies Spike to Record High, Past Financial-Crisis Peak, as Other Consumers Relish the Good Times. Why?

I’m not worried about banks or investors in subprime-credit-card backed securities. If they take a beating, fine. But what does this bifurcation tell us about consumers? By Wolf Richter for WOLF STREET. The rate of credit card balances that are 30 days or more delinquent at the 4,500 or so commercial banks that are smaller than the top 100 banks spiked to 7.05% in the fourth quarter, the highest delinquency rate in the data going back to the 1980s (red line). But at the largest 100...

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“Speculative Energy in the Market is Incredibly out of Control”

“It is a mind-numbing exercise for investors who see the cognitive dissonance”: CIO at Guggenheim Partners. By Wolf Richter for WOLF STREET. This market has been an astounding experience for people who’ve traded through the prior stock market bubbles and the last three crashes, who’ve seen a national and several regional housing bubbles form and implode, who’ve seen the subprime-auto-loan Asset Backed Securities bubble blow up in the mid-1990s and again during the Financial Crisis, and...

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Credit-Card Interest Rates Soar to Record High, Bond Yields Drop to Record Low: What Gives?

My “Credit-Card Spread Index” blows out. Heck if I knew what that means, but it doesn’t mean anything good. By Wolf Richter for WOLF STREET. The average yield of investment-grade bonds (as per ICE BofAML US Corporate Yield index) dropped to a record low of 2.62% this week. This comes after the Fed cut its policy rates three times last year, from already low levels, to even lower levels, and after it bailed out the repo-market with over $400 billion over a period of just three months....

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Subprime Auto Loans Explode, “Serious Delinquencies” Spike to Record. But There’s No Jobs Crisis, These Are the Good Times

Nearly a quarter of all subprime auto loans are 90+ days delinquent. Why? By Wolf Richter for WOLF STREET. Auto loan and lease balances have surged to a new record of $1.33 trillion. Delinquencies of auto loans to borrowers with prime credit rates hover near historic lows. But subprime loans (borrowers with a credit score below 620) are exploding at a breath-taking rate, and they’re driving up the overall delinquency rates to Financial Crisis levels. Yet, these are the good times, and...

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Shares of Bedding Unicorn Casper Collapsed by 72% from Magical Pre-IPO Valuation

Another overvalued money-losing unicorn in a lo-tech ho-hum business wobbled out the IPO window and crashed. By Wolf Richter for WOLF STREET. Casper Sleep Inc., a money-losing cash-burning retailer of foam-mattresses, duvets, sheets, and other bedding items, had dressed itself up as some sort of magical tech company to obtain its former hyper-inflated unicorn status with a fantastical “valuation” of $1.1 billion during its last round of funding on March 27, 2019. But it has been one...

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HELOC Balances Plunge to 15-Year Low. What’s Going on Here?

Banks are trying, but demand just isn’t there. By Wolf Richter for WOLF STREET. At the end of January, outstanding balances of home equity lines of credit (HELOC) at all commercial banks in the US – not including nonbanks, or “shadow banks,” we’ll get to those in a moment – fell to $317 billion, according to the data released on Friday by the Federal Reserve Board of Governors. They’ve plunged 48% from the peak in April 2009 and are now back where they’d been in April 2004. These are...

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The State of the American Debt Slaves, Q4 2019

Consumer credit rose to 19.3% of GDP, the highest ever. By Wolf Richter for WOLF STREET. Consumer debt – student loans, auto loans, and revolving credit such as credit cards and personal loans but excluding housing-related debts such as mortgages and HELOCs – jumped by $187 billion in the fourth quarter 2019, compared to a year earlier, or by 4.7%, to a record $4.2 trillion, according to Federal Reserve data released Friday afternoon: How much did all this borrow-and-spend contribute...

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I’m in Awe of How Tesla is Now a Supernatural Phenomenon

The WTF stock chart of the year. And another WTF chart of just how tiny Tesla is compared to the top 10 automakers. By Wolf Richter for WOLF STREET. Tesla’s shares spiked another 20% this morning, or by $160, to $940 a share. Every time I write a few words, I have to go back and change the number again, because the price just keeps shooting higher. So far this year, TSLA has shot up 120%. It could very well be that by this evening, shares are down by $300 or whatever, or that they’re...

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