Archive for 2020
Will The Coronavirus Outbreak Cause A Massive Stock Market Crash?
Could it be possible that this coronavirus outbreak will be the trigger that finally bursts the biggest stock market bubble in U.S. history? As I have discussed previously, stock prices in the United States were the most overvalued that they have ever been during the month of January, and our stock market has never been more…
The Dilemma Facing China Is Truly Awful
As has been the case since Monday’s sell-off, there is an attempt to try to look on the bright side of the virus headlines. Chinese officials are spreading the word globally that things are under control and that other country should not be closing their borders to China, in line with the WHO recommendations that…
Coronavirus Triggers “Biggest Shock” To Oil Markets Since Lehman Crisis
Update: The Telegraph’s Ambrose Evans-Pritchard warned that the collapse in Chinese oil consumption is “the biggest shock to oil markets since the Lehman crisis.” Evans-Pritchard said the plunge in consumption could be between three to four million barrels per day, adding that this amount is twice UK’s North Sea oil output. We noted earlier (see below), OPEC+ couldn’t come to…
Former Co-Head Of Investment Banking At Goldman Asia Banned For Life By The Fed
Former Goldman Sachs partner Andrea Vella has been barred from the industry over his involvement in the Malaysian investment fund scandal known as 1Malaysia Development Berhad (1MDB), a press release from the Federal Reserve said Tuesday. Vella, a former the Goldman Sachs’ co-head of investment banking for the Asia Pacific, was placed on leave in 2018 after…
China Bloodbath: Stocks Crash; Oil, Iron Limit Down Despite Emergency PBOC Intervention, Rate Cuts
previewed on Friday and again earlier today when we noted the latest trades in China’s A50 futures… … China’s reopening from the long Lunar New Year holiday was set to be ugly, and sure enough with Chinese stocks resuming trade at 9am on Monday, a wave of selling was unleashed culminating in nothing short of a bloodbath…
Coronavirus And The “Unsinkable” Titanic Analogy
Unthinkable doesn’t mean unsinkable. As we all know, the “unsinkable” Titanic suffered a glancing collision with an iceberg on the night of April 14, 1912. A half-hour after the iceberg had opened six of the ship’s 16 watertight compartments, it was not at all apparent that the mighty vessel had been fatally wounded, as there was…
Fed Policy And The Wuhan Coronavirus
When all you have is a hammer, everything looks like a nail. Abe Maslow, the same fellow who developed the “hierarchy of needs” paradigm in human psychology, popularized that phrase to warn scientific researchers about the perils of using tools inappropriate to the task at hand. It is an especially relevant observation when it comes to…
Capitalism In America: How A Dismal Decimal Is Robbing Americans Blind
There is no hiding anymore, the United States has become an oligarch owned banana republic with nukes, and with a monopoly currency which has allowed it to rig the markets for half a century. But now we are only a couple of hours from curtain – Midnight in America. With the stock market at all-time highs, virtually…
STAGGERING GLOBAL DEBT OF $253 TRILLION IS A DISASTER WAITING TO HAPPEN
Global debt has reached a staggering $253 trillion. This is a disaster waiting to happen, as the world’s total debt surged by some $9 trillion in the first three quarters of 2019, according to data from the Institute of International Finance. That’s a terrifying 322% of its GDP; and a record high. As Axios points out, in times…
12 Signs That The Economy Is Seriously Slowing Down As 2020 Begins
Lost in all of the headlines about Iran and impeachment is the fact that the U.S. economic slowdown which began during the latter stages of last year appears to be accelerating. The final numbers which will tell us if we are officially in a recession at this moment won’t be released until months from now, but…