Archive for June 2020
US Bankruptcies Busting Out to Match 2009 Peak Mean Trouble for Stock Market
The following article by David Haggith was published on The Great Recession Blog: Bloomberg reported this week that thirteen US companies (in the 50-million-plus size) filed for bankruptcy last week. That brought the total for the big boys and girls this year to 117, which matches the record peak for the first half of a year set in…
Who Is The Next Wirecard?
Now that the multi-year saga of German fintech megafraud Wirecard is finally over, the pain is only just starting for disgraced German regulator BaFin (with the EU launching an investigation into its borderline criminal “regulation” which punished short sellers while never once looking at the real fraud). Also let’s not forget about the company’s “auditor” EY (aka…
COVID-Comeback Batters Big-Tech & Black Gold, Sparks Bond Bid
Just when you thought it was safe to buy any stock – selected at random via Scrabble letters – on any dip, with levered money you can’t afford to lose, COVID-19 reappears in size to steal the jam out of your donut. Last Friday saw surges in COVID cases across many states and news that…
“Watershed” Moment: Is Gold Signaling Stocks Now On “Shaky Footing”?
I rarely discuss financial markets these days. Although I pay attention, it’s not in the obsessive manner I did a decade ago. I mainly keep my eyes out for potential big macro turning points, and if I see something interesting in that regard, I try to share it with readers. This means I might not mention markets…
COVID-Crunch? Fed Begins Rationing Coins As Americans Horde Cash
Having closed the US Mint and halted production (blaming COVID-19) after a surge in demand for gold and silver coins, and warned of the danger of using bills (once again blaming the pandemic and choosing to “quarantine” cash for the sake of Americans’ health), Fed Chair Powell quietly admitted to lawmakers this week that The Fed will be rationing coins…
This Can Not Continue, “A Staggering Number”: Over $18 Trillion In Global Stimulus In 2020, 21% Of World GDP
On Friday, we relayed the latest observations from BofA chief investment officer, Michael Hartnett who concluded that there is just one bull market to short – namely credit – “and the Fed won’t let you” by which he means all central banks. As the following table shows, the balance sheet of the G-6 central banks has exploded,…
HSBC Resuscitates 35,000 Job Cut Plan As Banking Troubles Persist
Back in February, HSBC, Europe’s largest bank and troubled lender, announced a plan that would slash upwards of 35,000 jobs. Shortly after, the lender put restructuring plans on hold for three months due to the COVID-19 outbreak. Now, Bloomberg reports, HSBC is resuming plans to cut tens of thousands of jobs as a way to boost profitability in today’s challenging environment. “Since February, we have pressed…
Soaring Food & Energy Costs Spark Rebound In Producer Prices
Producer Prices rebounded MoM in May with headline Final Demand PPI rising 0.4% (against +0.1% exp) but it left PPI YoY still down 0.8%… Source: Bloomberg Some serious dispersion in the various sector’s price swings… This rebound was driven by a record surge in food prices… Source: Bloomberg Two-thirds of the May increase in the index…
Civil War 2.0 Weather Report: The Tsunami Begins, But You Knew That…
If we can stop him, we shall prevent the collapse of Western Civilization. No pressure.” – Sherlock Holmes: A Game of Shadows In the first issue of the Civil War Weather Report, I put together ten steps to a new civil war. I did not expect that on the one year anniversary of that first report we’d move from step…
Pandemic, Economic Collapse, Full Societal Breakdown
“And the will of Zeus was moving towards its end.” – Homer Symbiotic Disharmony The recline and flail of western civilization beats on. Pandemic, economic collapse, full societal breakdown. The sequence grooves from one to the next with the symbiotic disharmony of a minor pentatonic scale. Peaceful protests devolved to rioting, looting, and structure fires…