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Rising rates and slowing economies pose a crisis risk. This is given high global leverage built up over years of loose monetary setting, it says.
- ‘Normalize’ Doomsday? Dems Lambaste Gop’s Latest Debt-Limit Gambit
House conservatives are pushing a plan to guarantee payments to U.S. debt holders — including some foreign nations — while freezing out nearly every domestic obligation.
- The Fed Circumvented the Debt Ceiling to Borrow Billions for Failed Banks
In the past week, the Fed’s financial statement shows it borrowed an additional $143 billion to fund the FDIC’s bailout of Silicon Valley Bank (SVB) and Signature Bank.
- UK Government Debt Reaches 99.2PC of GDP as Borrowing Hits February Record
Chancellor Jeremy Hunt said: “Borrowing is still high because we're determined to support households and businesses with rising prices and are spending about £1,500 per household to pay just under half of people's energy bills this winter.
- Congress Hasn’t Passed a Budget on Time in 27 Years
Congress' end-of-year rush to fund the federal government has become the norm.
- Some Buttons That I’d Not Push, and Some That I Would Push
"There are, undoubtedly, still other unwise government interventions that I would wish to eliminate, but that I would also not willingly push a button to eliminate immediately. But there are buttons I would push." ~ Donald J. Boudreaux
- U.S. Recession Probability Shoots Over 50% on Way to 60%
A lot has happened during the last six weeks. Rising interest rates. The second and third-largest bank failures in U.S. history. Technology industry layoffs.
- Just Imagine Headlines Like: "Banks Brought To Their Knees By Rate Hikes, Face Unrepentant Fed Which Hiked Again"
We used to have winter storms, sometimes even Nor’easters, but now we get polar vortex or other more ominous sounding things. Maybe this current banking “crisis” is behind us? At least for now.
- US Existing Home Sales Plunge -22.64% YoY In February As Fed Withdraw … For The Moment (Median Prices Decline -0.2% YoY)
The good news? US existing home sales SOARED in February. Up 14.5% MoM in February to 4.58 million units SAAR sold. The bad news? On a year-over-year basis, existing home sales plunged -22.64%.
- End of the ‘Everything Bubble’ Finally Hit The Banking System. Might Be First of Many Shocks: MW
The Fed and other central banks face a difficult choice: Keep rates high to control inflation or loosen monetary policy to stabilize financial markets.
- RESERVES NOT REQUIRED
Things are truly heating up, but what caused this? Where is it going?
- Watch Live: Yellen To Reassure World That "Treasury Is Committed" To Bailing Out Regional Bank Depositors
Watch Treasury Secretary Janet Yellen will address bank leaders from across the country at the American Bankers Association's annual Washington Summit (due to start at 1000ET):
- Fed Policy: It's Not Fractional Reserve Banking, It's ZERO Reserve Banking
The above image from Fed Policy Tools. "This action eliminated reserve requirements for all depository institutions." The Fed openly encouraged and sought both inflation and speculation. It got what it wanted and then some. Now the Fed has no idea how to fix the mess it created.
- Secession Is Here: States, Cities and the Wealthy Are Already Withdrawing from Americaby Yves Smith
Alienation and separatism can go a long long way before getting to outright secession, and they still have real consequences.
- 2017 FlashBack: Fed’s Yellen Expects No New Financial Crisis in ‘Our Lifetimes'
U.S. Federal Reserve Chair Janet Yellen said on Tuesday that she does not believe that there will be another financial crisis for at least as long as she lives, thanks largely to reforms of the banking system since the 2007-09 crash.
- At Year End, JPMorgan Chase Held Over $1 Trillion in Uninsured Deposits Versus $119 Billion at First Republicby Pam Martens
At Year End, JPMorgan Chase Held Over $1 Trillion in Uninsured Deposits Versus $119 Billion at First Republic By Pam Martens and Russ Martens: March 21, 2023 ~ Jamie Dimon is the Chairman and CEO of JPMorgan Chase, the largest bank in the U.S., which is also ranked the riskiest global bank by its regulators. But instead of getting his own house in order in the midst of a banking crisis, Dimon […]
- Gold Rally Cools as Focus Turns to Fed Move
Gold continued to decline for the second day on Tuesday after rising above $2,000 an ounce in the last session, as investors turned their attention from the banking crisis to the U.S. Federal Reserve's interest rate decision.
- Too Wrong To Fail
As the old saw goes, a banker is someone who lends you his umbrella when the sun is shining and then wants it back as soon as the first drops of rain fall.
- Federal Reserve ‘Between a Rock and a Hard Place’ as Interest Rate Decision Looms
The Fed's two-day policy meeting kicks off Tuesday with the central bank perhaps facing the most uncertain landscape in recent memory as rising interest rates stand in tension with a banking crisis that threatens economic growth.
- Market Stress Indicators Flash Warnings as Banking Worries Continue
Fears of a global banking crisis are continuing to swirl, with investors keeping a close eye on a dashboard of indicators that show how stress is rippling through markets and the banking system.
- " No Financia Crises in My Lifetime"-Yellen Says US Will Intervene if Needed to Protect Banks
Treasury Secretary Janet Yellen will say on Tuesday that the US government could repeat the drastic actions it took recently to protect bank depositors if smaller lenders are threatened.
- Anxiety Strikes $8 Trillion Mortgage-Debt Market After SVB Collapse: WSJ
Investors fear other banks will sell mortgage-backed securities, pushing down prices.
- The 11 Days of Turmoil That Brought Down Four Banks And Left a Fifth Teetering: Bloomberg
The speed with which four banks collapsed — and one continues to struggle — has left investors reeling. While the failures came in the span of just 11 days, the scenarios that brought them down were each unique.
- SVB and Signature Bank Were Just the Tip of the Icebergby Michael Maharrey
The demise of Silicon Valley Bank and Signature Bank was just the tip of the iceberg. As it turns out, hundreds of banks are at risk. This explains why the Federal Reserve and US Treasury rushed to provide what is effectively a bailout for the entire banking system. In the first week, the Federal Reserve The post SVB and Signature Bank Were Just the Tip of the Iceberg first appeared on […]
- Americans To Bear Burden Of Monetary System's Gradual Deterioration, Economist Says
Ordinary Americans can expect their wealth to get repeatedly chipped away as the monetary system degrades and requires progressively more intervention by authorities to perpetuate itself, according to an influential author and economist. It may take “a very long time,” however, for the system to actually break, he told The Epoch Times.
- US Studies How To Guarantee All $18 Trillion In US Bank Deposits
"US officials are studying ways they might temporarily expand Federal Deposit Insurance Corp. coverage to all deposits, a move sought by a coalition of banks arguing that it’s needed to head off a potential financial crisis." Guess our March 12 tweet was ahead of its time yet again.
- Switzerland’s Secretive Credit Suisse Rescue Rocks Global Finance
Days before a hastily convened press conference late on Sunday that would make the world's front pages, Switzerland's political elite were secretly preparing a move that would jolt the globe.
- We've Forgotten That Business-Cycle Recessions Are Essential
A stagnating zombie economy never recovers.
- A Bear Market Could Take Much Longer Than You Expect
Well, based upon history and the analysis legacy left to us by Ralph Nelson Elliott, I think it is a strong probability that we will see a long-term bear market in the United States.
- Are Bank Failures a Sign of More Trouble Ahead?: Dr. Ron Paul
The failure of Silicon Valley Bank (SVB) on March 10 was the second largest bank failure in US history. Just two days following SVB’s collapse,...
- U.S. Banking System Faces Worsening Crisis in Confidence
The national news cycle has careened from one extraordinary and alarming story to the next. The brewing crisis in banks remains front and center.
- "Nowhere To Hide In CMBS": CRE Nuke Goes Off With Small Banks Accounting For 70% Of Commercial Real Estate Loans
Recently we warned that the office commercial real estate implosion is rapidly transforming into the Big Short 3.0 (see "Why Small Banks Are In Big Trouble: As Hedge Funds Pile Into The New "Big Short", The Next 'Credit Event' Emerges") one which would also have a devastating impact on small banks due to their outsized exposure to the sector (Goldman recently calculated that up...
- History of Banking Crises Holds a Warning for Jay Powell: Bloomberg
Responding to bank failures in 1972 and 1984, the Federal Reserve pursued two very different paths, with very different consequences for inflation.
- Distressed Markets are Hurting Most from Rich-World Bank Turmoil
\Bond markets in some of the world’s most vulnerable economies are flashing default warnings as turmoil in the US and European banking systems makes it even tougher for emerging nations to borrow and repay debt.
- UBS Most Reliant on AT1 Bonds Wiped Out in Credit Suisse Deal
UBS Group AG is more reliant for its capital on the type of risky bonds that were wiped out in the Credit Suisse Group AG takeover than any other major lender in Europe.
- The New Central Bank Dilemma From the Fed to the Philippines
\From Washington to Zurich to London, central bankers need to make a pivotal decision in coming days: whether their biggest immediate fear is financial or price stability.
- Fund Managers’ Biggest Fear Is Now a Systemic Credit Crunch
A systemic credit event has replaced stubborn inflation as the key risk to markets for increasingly pessimistic investors, according to Bank of America Corp.’s latest global survey of fund managers.\
- JPMorgan’s Kolanovic Sees Increasing Chances of ‘Minsky Moment’
Bank failures, market turmoil and ongoing economic uncertainty as central banks battle high inflation have increased the chances of a “Minsky moment,” according to JPMorgan Chase & Co.’s Marko Kolanovic.
- The Fed Now Faces Same Destination — With a More Treacherous Path
After an incredibly volatile couple of days, stocks ended higher last week, with the S&P 500 rising 1.4%. The index is now up 2.0% year to date, up 9.5% from its October 12 closing low of 3,577.03, and down 18.3% from its January 3, 2022 closing high of 4,796.56.
- A Fed Pause Could Do More Harm After Banking Crisis
“Bottom line is we still have an inflation problem, and the Fed needs to continue to raise rates,” Paul Gruenwald, chief economist at S&P Global Ratings, told Yahoo Finance. “So, they’ve obviously got one eye on the financial sector, but we still think they’re going to go 25 basis points later this week. But the language should be sort of softer and slower.”
- BofA: 'Recession fears are up in March'
With the banking crisis rolling alone, recession risk comes back into focus.
- Latest on the Banking Crisis and Global Markets: Live Updates
US stock futures and global markets rose Tuesday after coordinated action by the Federal Reserve and other leading central banks to keep dollars flowing around the financial system appears to have calmed nerves for now.
- Peter Schiff: Investors Will Bid Up Gold When They Realize Inflation Is Winningby SchiffGold
Peter appeared on Fox Business Claman Countdown to talk about the recent bank failures and the ensuing government bailouts. During the interview, they discussed how to invest in the current environment. Peter said that right now, gold is undervalued, but investors will bid up the price much higher when they come to terms with the The post Peter Schiff: Investors Will Bid Up Gold When They […]
- Links 3/21/2023by Yves Smith
- Some US Farmers Get Behind Mexico’s GMO Corn Ban, Reports Mexican Daily La Jornadaby Nick Corbishley
"We believe that Mexico has every right to ask for what it wants," says Lynn Clarkson, chief executive of Illinois-based Clarkson Grain company. "As a supplier, the United States should give its customers what they want."
- Lack of Grownups in the Room Exacerbates Bank Freakoutby Yves Smith
The bank firefighting squad seems to be out on a bender.
- Why is America So Anti-City? It Holds Back the Entire Countryby Yves Smith
oth parties are exacerbating the city/country split. How different are their interests?
- Gold Surges Past $2,000 for Third Time in 3 Years as Global Markets Still Worry About Credit Suisse
Dubai: Gold has again shot past $2,000 an ounce as investors worldwide keep worrying about a continued crisis for the banking sector – even after Swiss bank USBS confirmed it will buy troubled Credit Suisse for $3.23 billion.
- Gold Prices Hit an All-Time High in India, Australia, and the UK
Gold prices in Australia also touched their peak of $2,922 an ounce, fuelled by the falling value of the Australian dollar against the US dollar.
- Gold Prices Set to Skyrocket
Trying to fit a square peg into a round hole. Looking for inflation in All the Wrong Places.
- Global Gold Market to Reach 6.3 Thousand Tonnes by 2030
The global economy is at a critical crossroads with a number of interlocking challenges and crises running in parallel. The uncertainty around how Russia`s war on Ukraine will play out this year and the war`s role in creating global instability means that the trouble on the inflation front is not over yet.
- Market Turmoil Linked To Credit Suisse Has Spurred Demand For Haven Assets
The best performing precious metal for the week was silver, up 10.16%, in response to the strong move in gold.
- The London Metal Exchange Rocked by New Nickel Scandal After Finding Bags of Stones
THE London Metal Exchange (LME) has discovered bags of stones instead of the nickel that underpinned a handful of its contracts at a warehouse in Rotterdam, in a revelation that will deliver another blow to confidence in the embattled exchange.
- China Finds Huge High-Quality Gold Mine; Deposit Will Yield Critical Resources
China has discovered a super-large gold deposit, the Xilaokou gold mine in Rushan, East China's Shandong Province, with an estimated reserve of 50 tons, China Media Group reported on Saturday.
- Uninsured Deposits by Bank
There are now a total of $8 trillion in uninsured deposits in the U.S. Roughly 40% of all deposits are uninsured.
- Argentina’s 100% Inflation Is Wearing Down Its Top Companies
\Inflation of more than 100% in Argentina is erasing the advantage the country’s top companies used to have by booking revenue in US dollars.
- Is it a LOLR? No, It’s a Trap
"The reason this is infuriating is that we are being told that taxpayers should be willing to double down, to reimburse even-more-careless depositors for their negligent inattention to risk." ~ Michael C. Munger
- FDIC: No Savior Then or Now
"It is not clear that some sort of enhanced stockholder liability has yet returned to the Overton Window, but it is possible that Americans will point out the hypocrisy of the Biden administration’s raising taxes on the rich with one hand while bailing them out with the other." ~ Robert E. Wright
- Don't Worry, It Will Only Cost $131 Trillion to Address Climate Change
Time is Running Out. The UN is out with another fearmongering report on climate change. It's labeled the IPCC Sixth Assessment Report (AR6).
- We've Forgotten That Business-Cycle Recessions Are Essential
Four decades of rising markets punctuated by crisis-induced crashes seems to have fostered an unspoken belief that no one should ever get hurt in markets or the economy. Everything "should" always get better for everyone, without any messy loss or pain. Not only is this not realistic, it overlooks the role business-cycle recessions play in restoring the vibrancy of economies and markets distorted […]
- "Powell's Volcker Moment": Whatever The Fed Does On Wednesday Will Be A Mistake
A little over a week ago, when realizing the severity of the banking crisis spreading across the regional bank system (and which was about to jump the Atlantic and destroy one of the world's largest banks in a matter of hours), we said that "Powell is trapped: more hikes and CRE leads to tens of billions of incr. losses across banking system (AFS+HTM); small banks now reserve constrained […]
- Total Wipeout of $17 billion in Credit Suisse AT1 CoCo Bonds Shocked Because No One Reads Clauses Anymore?by Wolf Richter
We’re not even getting peanuts? EU regulators came out and said, no, no, no, that’s just in Switzerland, not in the EU.
- FedNow Instant Payments Are Coming And CBDCs Will Follow
There’s absolutely no doubt that our financial system is in flux right now. We’re watching a storm approach, and it’s about to envelop the entire nation in chaotic conditions. If you think things are crazy now, just hang on to your halo…it’s about to get a whole lot worse.
- Russia Bans SWIFT
Banks have been ordered to use the country’s domestic financial messaging systems for transactions...
- Fed Liquidity Boost Is Bad for the Dollar, Deutsche Bank’s Ruskin Says: Bloomberg
The rush to add liquidity into the monetary system is “the most overt sign” of financial stress and a clear negative for the dollar, according to Alan Ruskin, chief international strategist at Deutsche Bank AG.
- First Republic Bank Shares Crash To New Record Low, JPM's Dimon Reportedly Leading Another Rescue Effort
Having dumped $30 billion of deposits into First Republic Bank last week, and the bank then being rumored to be pushing for a capital raise, The Wall Street Journal reports that JPMorgan CEO Jamie Dimon is leading discussions with the chief executives of other big banks about fresh efforts to stabilize the troubled regional.
- The U.S. Banking System Was Destroyed By QE…And Negative Rates Killed It
Every time there is a banking crisis some scratch their heads and wonder; how could this happen? Surely it must be greed, bad risk management or lack of regulation. More intervention should solve it. However, all those excuses miss the most critical point: The U.S. banking system was destroyed by design, and the big banks played along with it.
- 2:00PM Water Cooler 3/20/2023by Lambert Strether
~ Today's Water Cooler ~
- The Fed's Malfeasance after SVB
This past weekend saw extraordinary actions by the Fed to address the meltdown of Silicon Valley Bank. Did the central bank break the law by effectively authorizing unsecured loans to banks based on the face value—rather than significantly lower market value—of those banks' Treasury holdings?
- Another Unstable Finger: Mauldin Economics
“There’s an old saying: Whenever the Fed hits the brakes, someone goes through the windshield,” said Michael Feroli, chief economist at J.P. Morgan. “You just never know who it’s going to be.” (The New York Times, March 16, 2023)
- Investment Banker Whalen on Bailouts: The Public ‘Will Pay Through Inflation'
During a recent appearance on Chicago's Morning Answer, Christopher Whalen, an investment banker, chairman of Whalen Global Advisors LLC, and editor for The Institutional Risk Analyst, discussed the present state of the banking industry.
- The Bank of England: Money Creation in Their Own Words
In March 2014 the world’s oldest central bank, the Bank of England (BoE), did every advocate of sound money a big but unintentional favor by publishing an official introduction to and an official detailed account of unsound money.
- Central Bank Digital Currencies Would Bring Hyperinflation: Lacalle
There are many excuses often used to explain inflation. However, the fact is that there is no such thing as “cost push inflation” or “commodity inflation.” Inflation is not an increase in prices, it is the destruction of the purchasing power of the currency.
- How the Fed’s 2008 Mortgage Experiment Fueled Today’s Housing Crisis
How should Congress assess the Federal Reserve’s track record as an investor in residential mortgage-backed securities (MBS)? Regardless of Fed spin, it merits a failing grade. The Fed’s COVID-era intervention in the mortgage markets fueled the second real estate bubble of the 21st century.
- Undun! Fed’s $8.6 Trillion Balance Sheet in Focus as Banks Seek Cash (25 BPS Increase At Next Meeting Then DOWN To 3.820% By Jan 2024)
Undun. The Fed’s balance sheet, that is. For all the focus on whether the Federal Reserve is about to pause its interest-rate hikes, there’s another critical policy decision sure to…
- Putin Tells Xi He's "Open To Negotiating Process" On Ukraine As US Says Ceasefire "Unacceptable"
Update(1017ET): What's being described as an initial, informal meeting between Presidents Xi and Putin is underway at the Kremlin. While the expected cordialities and expressions of closer relations were exchange, among the most notable early statements came from Putin, who said he's "open" to peace talks with Ukraine and China's mediation efforts.
- Amazon Prepares To Fire Another 9,000 Workers
Bloomberg reported that Amazon sent an internal email notifying its employees about an upcoming wave of layoffs, which is part of the company's continuing strategy to reduce costs amid mounting macroeconomic uncertainty.
- Wave Of Anti-Government Protests Are Setting The World On Fire
There has been a surge in protests and strikes around the world, primarily focused on economic hardships, skyrocketing inflation, political turmoil, and geopolitical issues.
- It Turns Out That Hundreds of Banks Are at Risk
It’s the weekend, but our fresh Financial Crisis does not sleep. And a recent study says we’ve only seen the tip of the iceberg.
- Robert Kiyosaki Warns Us Inflation Is Now Systemic, Says Fed Chair Was ‘Lying Through His Teeth'
Robert Kiyosaki, investor and "Rich Dad, Poor Dad" author, has issued a warning about the state of inflation in the US.
- The Wolf Street Report: Free Money Turned Brains to Mush. Now Some Banks Fail
The Fed ended Free Money, and the only thing it broke is the consensual hallucination that spawned during the Free Money era. And look what we got.
- Gov’t Gone Wild! US Treasury 2-year Yields Down -32 Basis Points As Gold Soars 3.8% On Banking Nerves And Sloppy Joe’s Budget Proposal
Its Gov’t Gone Wild! Insane spending budget by “Sloppy Joe” Biden, Yellen asking Warren Buffet for banking advice (seriously??), a war in Ukraine that America doesn’t seem to actually want to win, etc. But its the banking system where banks are getting crushed by rising inflation and interest rates (but failed to hedge). Sigh.
- No Mystery To Me! US Banks on Bumpy Path as First Republic’s Troubles Persist (Senator Warren Calls For Investigation Into Banking)
The infamous Covid surge in M2 Money supply (green line) produced a big surge in bank price stocks, thanks in part to the insane spending that Congress made following Covid (I’m looking at you, Liz!). But now The Fed is slowing M2 Money growth and banks like First Republic are paying the price.
- Strange Days! US Mortgage Rate Falls To 6.97% As Banking Crisis Persists (Yellen, Bank Consolidations, Bailouts And The Return Of QE)
Despite endless promises from Washington DC that there would never be another bank bailout, the Biden Administration bailed out Silicon Valley Bank (SVB) by removing the $250,000 cap on deposit insurance. Then Treasury Secretary Janet Yellen added that in the future, only banks that posed SYSTEMIC RISK to the economy will be bailed out. Translation: only the big four Too Big To Fail (TBTF) banks […]
- Deficit Hawk Hypocrites and Warmongers Unite, Apparently Hoping to Start WWIII
The WSJ wants to send long-range missiles to Ukraine, Lindsey Graham discusses WWIII, and Republicans want defense spending to rise 5 percent more than inflation.
- The ECB Chimes In On Liquidity, I Translate ECB President Christine Lagarde
Please consider these Statement by Christine Lagarde, President of the European Central Bank, on the announcement on 19 March 2023 by the Swiss authorities
- Janet Yellen Says "Liquidity is Strong" [Ignore the Man Behind the Curtain]
"We welcome the announcements by the Swiss authorities today to support financial stability. The capital and liquidity positions of the U.S. banking system are strong, and the U.S. financial system is resilient. We have been in close contact with our international counterparts to support their implementation."
- UBS Was Quietly Bailed Out in 2008; Now It’s Getting a $173 Billion Backstop to Buy Credit Suisse
Yesterday, the Swiss banking giant, UBS, agreed to a shotgun wedding with its collapsing long-time Swiss rival, Credit Suisse. Switzerland has committed $173 billion in loans and guarantees to the combined firm.
- Edge of the Edge: Hussman
The simplest thing that can be said about current financial market and banking conditions is this: the unwinding of this Fed-induced, yield-seeking speculative bubble is proceeding as one would expect, and it’s not over by a longshot.
- Banking on Disaster
On Sunday, March 12, regulators shut down the Signature Bank. They reason they gave for doing this is incredible. They said that the entire financial system night collapse if they didn’t. What kind of insane system is it in which a run on one bank can cause such a disaster? The crisis shows once more that the great Murray Rothbard was right. We need to end the Fed and fractiona...
- De-dollarization: World Faces Threat of Economic Catastrophe
Global use of the US dollar as a currency may decline further to 40-45% within the next 2-3 years. March 2023 brought an economic bloodbath in the United
- California’s Covid Misinformation Law Is Entangled in Lawsuits, Conflicting Rulingsby Yves Smith
California's Covid censorship law has not yet been killed by the judiciary, sadly.
- Why SchiffGold? Peter Schiff Explains (Video)by SchiffGold
Peter Schiff recently appeared on Brighteon.com with Mike Adams to talk about the failure of SVB and Signature Bank, the bailouts and the potential ramifications. During the interview, Peter explained the difference between SchiffGold and a lot of the other gold companies out there. You can watch the entire interview HERE. Gold has gone up The post Why SchiffGold? Peter Schiff Explains (Video) […]
- Learn to Read Charts Like Mike -- and see what's coming
This is the first of a series of exclusive presentations that will help you easily understand the banking crisis, as well as what may be coming next.
- UBS Was Quietly Bailed Out in 2008; Now It’s Getting a $173 Billion Backstop to Buy Credit Suisse at 82 Cents a Shareby Pam Martens
UBS Was Quietly Bailed Out in 2008; Now It’s Getting a $173 Billion Backstop to Buy Credit Suisse at 82 Cents a Share By Pam Martens and Russ Martens: March 20, 2023 ~ Yesterday, the Swiss banking giant, UBS, agreed to a shotgun wedding with its collapsing long-time Swiss rival, Credit Suisse. Switzerland has committed $173 billion in loans and guarantees to the combined firm. A key player in […]
- Got Gold?: Miller on the Money
Good friend Chuck Butler, editor of The Daily Pfennig, is a world currency expert. He constantly asks, “Got Gold?”
- Gold Prices Reflect A Shift In Paradigm, Part 2
In the first part of this report, we highlighted that observed gold prices have significantly detached from our model-predicted prices. While this has happened in the past, prices always converged eventually. However, the delta between the observed and the model predicted price has now reached a record high of around $400/ozt. We thus ask ourselves whether it is reasonable to...
- Gold Tops $2,000 for First Time in a Year as Bank Fears Continue
\Gold steadied, after rising above $2,000 an ounce for the first time in a year after a deal to buy Credit Suisse Group AG failed to entirely ease fears over the global banking sector.
- Bitcoin Climbs to 9-Month High as Bank Turmoil Sparks Rally
Bitcoin climbed to a nine-month high on Monday as turmoil in the banking sector drives some investors to turn to digital assets, as the cryptocurrency built on its best week in four years. The biggest cryptocurrency rose as far as $28,567, its highest since mid-June, and was last up 0.9%, amid growing expectations that central banks would slow the pace of interest rate hikes.
- Credit Suisse Says $17 Billion Debt Worthless, Angering Bondholders
Credit Suisse said 16 billion Swiss francs ($17.24 billion) of its Additional Tier 1 debt will be written down to zero on the orders of the Swiss regulator as part of its rescue merger with UBS , angering bondholders on Sunday.
- Bank Crisis Survivors Remember How Fast the Dominoes Can Fall
All sorts of crises have been predicted by financial Cassandras in the aftermath of 2008. In reality, they’re exceedingly rare in markets. And yet, with three US banks down, a fourth teetering and the government-brokered acquisition of a fifth — and much larger — institution in Europe, the comparisons to that episode have become a little harder to ignore.
- Things Are Only Getting Harder for the Fed, Ken Rogoff: FT
It is far easier to hold off political pressures in an era where global interest rate and price pressures are pushing downwards. Not anymore. Those days are over and things are going to get harder for the Fed. The trade-offs it faces next week might only be the start.
- Federal Reserve and Global Central Banks Act to Shore Up Dollar Access: NYT
America’s central bank and its counterparts around the world are rushing to cushion markets against the impact of bank problems.
- Fed Adds Nearly $300 Billion to Balance Sheet in One Week With Bank Bailoutsby Michael Maharrey
The Federal Reserve added nearly $300 billion to its balance sheet in a single week as it kicked off its loan bailout program for banks. In effect, the Fed loaned troubled banks $300 billion of new money that was created out of thin air. In other words, we got $300 billion in inflation in a The post Fed Adds Nearly $300 Billion to Balance Sheet in One Week With Bank Bailouts first appeared on […]
- US Credit Crunch Raises Risk of Fed Slamming Brakes Too Hard
A banking crisis in a matter of days has emerged to potentially choke off a red-hot economy, raising the odds of a recession that the Federal Reserve has been working to avoid.
- Analysis: Bank Panic Raises Specter of 2008, May Bring Lasting Change
The lightning speed at which the banking industry descended into turmoil has shaken global markets and governments, reviving eerie memories of the financial crisis. Like 2008, the effects may be long lasting.
- Bank Failures: Anger in Congress, but Division on What to Do
Bills were filed, hearings were planned and blame was cast as Congress reacted this past week to the abrupt failure of two banks .
- Banking Crisis Hangs Over Economy, Rekindling Recession Fear
Borrowing could become tougher, a particular blow to small businesses — and a threat to the recovery’s staying power.
- ‘We Never Thought a Bank So Successful Could Collapse So Fast’:WSJ
Silicon Valley Bank was a center of gravity in the tech industry. Its bankers understood technology and were eager to support unproven companies.
- Local Banks Could Leave Gaps That Are Hard to Fill: WSJ
The failures of Silicon Valley Bank and Signature Bank SBNY -22.87% as well as questions about First Republic Bank’s FRC -32.80% future have cast a sudden pall on the banking sector. An emerging concern is that customers at community and regional banks, worrying that their deposits aren’t safe, might pull their money, putting it into money-market funds or accounts at bigger banks.
- Fed Poised to Approve Quarter-Point Rate Hike This Week, Despite Market Turmoil
Chairman Jerome Powell and his fellow central bankers will want to signal that it's important to continue the fight to bring down inflation.
- FDIC Announces Agreement to Sell Signature Bank Assets to New York Community Bancorp Subsidiary
Flagstar Bank, the subsidiary, will assume substantially all deposits and certain loan portfolios, and all 40 of Signature Bank's former branches.
- Elizabeth Warren Says Jerome Powell Has ‘Failed’ as Federal Reserve Chair
"I don’t think he should be chairman of the Federal Reserve," the Massachusetts Democrat said in an interview on NBC News' "Meet the Press."
- First Republic Shares Slide 18% Monday After a Credit Rating Downgrade
S&P reduced its credit rating to B+ from BB+ on Sunday after first lowering it to junk status just last week. The rating remains on CreditWatch Negative, said S&P.
- Peter Schiff: Americans Will Pay for These Bank Bailoutsby SchiffGold
Peter Schiff appeared on the Capitol Report on NTD News to talk about the bank bailouts and the possible ramifications. He said that no matter what President Joe Biden and others tell you, Americans are going to pay for this. The interview started with a clip of Treasury Secretary Janet Yellen assuring Congrees that the The post Peter Schiff: Americans Will Pay for These Bank Bailouts first […]
- Links 3/20/2023
- Fed, Central Banks Created the Current Crisis and Are on Course to Making Matters Worseby Yves Smith
The Fed has a lot of 'splaining to do, yet seems determined to keep doing the wrong thing.
- Turkey’s Opposition Leads in the Polls. Would They Move the Country Closer to the West? by Conor Gallagher
The Turkish opposition’s “memorandum of understanding on common policies” reveals which way they’re likely to steer the country should they win May’s election.
- Banking Crisis 2023: Deep Origins and Future Directionsby jackrasmus
By Dr. Jack Rasmus Copyright 2023 It’s been a week since the collapse of the Silicon Valley Bank, the 16th largest bank in the US at the time of its collapse and reportedly a source of funding for half of all the tech start ups in the US. It’s now become clear the more general
- Weekly Market Pulse: Been There, Done Thatby Joseph Y. Calhoun III
A bank's assets triple over a few years when interest rates are low. The bank invests those assets in long-term, higher-yielding municipal bonds with little credit risk. Inflation flares up and interest rates rise, reducing the value of the municipal bonds and funding dries up. Regulators become concerned that the failure of this bank could [...]
- THE WOLF STREET REPORT: Free Money Turned Brains to Mush. Now Some Banks Failby Wolf Richter
The Fed ended Free Money, and the only thing it broke is the consensual hallucination that spawned during the Free Money era. And look what we got.
- The Technicals: This Week Could Be the Most Important Week for Gold in Yearsby SchiffGold
Gold had a big rally last week. But is it sustainable? What are the technicals saying? The data over the last several months continues to give insight into the market. November showed the market was in neutral, but then the December analysis correctly identified an impending move upwards, the January review called for a correction and then February concluded: Currently, the data is The […]
- After Huge Plunge, Treasury Yields Are Due for a Big Bounce on Monday. Here’s Whyby Wolf Richter
What we saw on Friday was large-scale fear of taking big uninsured deposits into a potentially gruesome FDIC weekend.
- The Comex Is in Far Worse Shape Than SVB if the Run on Physical Acceleratesby SchiffGold
Given the potential impacts of the ongoing banking crisis, I will start this article with the conclusion. The current banking crisis could not have come at a worse time for the Comex system. Inventories have seen massive depletion over the last 2+ years as investors have slowly been pulling physical out of the vaults. I The post The Comex Is in Far Worse Shape Than SVB if the Run on Physical […]
- SVB Crash: A Banking System Crisis or ‘One Off’ Event?by jackrasmus
The US banking crisis erupted last week, March 10, 2023 with the collapse of the Silicon Valley Bank. Today’s Alternative Visions show is dedicated to a discussion of the events of the past week since the SVB crash. What’s the fall out from the SVB implosion? What other banks are in trouble? What’s the Fed
- The Most Splendid Housing Bubbles in Canada: March Update on the Housing Bustby Wolf Richter
Year-over-year, home prices plunged by the most on record as the seasonal uptick in prices was far smaller than a year ago.
- JPMorgan’s High Risk Footprint; Bloomberg News as PR Agent for Jamie Dimon; and the Untold Story of the Failed “Rescue” of First Republic by the Mega Banksby Pam Martens
JPMorgan’s High Risk Footprint; Bloomberg News as PR Agent for Jamie Dimon; and the Untold Story of the Failed “Rescue” of First Republic by the Mega Banks By Pam Martens and Russ Martens: March 17, 2023 ~ At 6:33 a.m. this morning, this big, bold headline appeared at the very top of Bloomberg News web page: “How Dimon and Yellen Helped Secure $30 Billion Lifeline for First Republic.” […]
- A Crack in the Dam: SchiffGold Friday Gold Wrap March 17, 2023by SchiffGold
Friday gold wrap host Mike Maharrey has been saying something is going to break in the economy for months due to the Federal Reserve’s monetary tightening to fight price inflation. Last Friday, something broke when Silicon Valley Bank collapsed followed quickly by the demise of Signature Bank. It was the first crack in the dam. The post A Crack in the Dam: SchiffGold Friday Gold Wrap March 17, […]
- Fed Loaned $160 Billion to Banks and $142 billion to FDIC. But QT-Related Roll-off Continuedby Wolf Richter
At around 4.75%, plus collateral, these are expensive loans for banks.
- Bond Market Play Reveals Systemic Crisisby Michael
Economist Michael Hudson analyzes the collapse of Silicon Valley Bank, Silvergate, and Signature Bank, explaining the similarities to the 2008 financial crash. In this discussion with Geopolitical Economy Report editor Ben Norton, Hudson also addresses the US government bailout (which it isn’t calling a bailout), the role of the Federal Reserve and Treasury, the factor Continue Reading The […]
- Dollar Diplomacy Downby Michael
RADHIKA DESAI: Hi everyone. Welcome to the fifth Geopolitical Economy Hour, the fortnightly show about the political and geopolitical economy of our times. I’m Radhika Desai. MICHAEL HUDSON: And I’m Michael Hudson. RADHIKA DESAI: So this is our third and final show on the theme of de-dollarization, based on our work, particularly on Geopolitical Economy Continue Reading The post Dollar […]
- Defying Pivot-Mongers, ECB Hikes by 50 Basis Points, QT Continues, Explains Tools to Calm a Bank Panic while Fighting Inflation Simultaneouslyby Wolf Richter
A hugely important concept: "There is no trade-off between price stability and financial stability.”
- Chinese Gold Demand Continued to Surge in Februaryby SchiffGold
After ending 2022 on an upward trend that continued into January, Chinese gold demand surged again in February as the economy continues to rebound from government-imposed COVID policies. Gold withdrawals from the Shanghai Gold Exchange (SGE) totaled 169 tons in February. This is a reflection of strong wholesale demand and signals an ongoing rebound in The post Chinese Gold Demand Continued to […]
- If It Looks Like a Bailout and Walks Like a Bailout It’s Probably a Bailoutby Michael Maharrey
As the old saying goes, if it looks like a duck, walks like a duck, and quacks like a duck, it’s probably a duck. Well, if it looks like a bailout, walks like a bailout, and talks like a bailout, it’s probably a bailout. In the aftermath of the Silicon Valley Bank and Signature Bank The post If It Looks Like a Bailout and Walks Like a Bailout It’s Probably a Bailout first appeared on […]
- Retail Sales Dip a Tad in Feb after Huge Spike in Jan. Year-over-Year: +5.4% Despite Price Drops in Durable Goods & Gasolineby Wolf Richter
Consumers are still spending like drunken sailors, especially online, now that they don’t have to blow so much on gasoline anymore.
- First Republic Downgraded by S&P from Confidence-Inspiring-LOL “A-” Investment-Grade to BB+, One Itty-Bitty Notch into Junk. Shares, Bonds Re-plungeby Wolf Richter
We laugh, but it’s a start. SVB Financial collapsed with investment-grade ratings.
- Career Cushioning—The Latest Trend in Employmentby Bob Williams
You may have had the same experience I had as a kid. When I wanted to know how to spell a word or what it meant, my mom would say, “Look it up in the dictionary.” But the dictionary on the shelf then would be woefully out of date today. Every year lexicographers, the people [...]
- The Mechanics of a Bond Market and its Impact on the Banking Crisisby Michael
Why the Bank Crisis is Not Over The crashes of Silvergate, Silicon Valley Bank, Signature Bank and the related bank insolvencies are much more serious than the 2008-09 crash. The problem at that time was crooked banks making bad mortgage loans. Debtors were unable to pay and were defaulting, and it turned out that the Continue Reading The post The Mechanics of a Bond Market and its Impact on the […]
- Services Inflation Rages at Four-Decade High: Fueled by Rents, Auto Insurance, Repairs, Airfares, Hotels, Pet Services, Food Services, Deliveryby Wolf Richter
But durable goods prices drop, energy inflation eases, food inflation is less bad.
- My Monday, March 13 Radio Interview on the SVB Bank collapseby jackrasmus
Check out my radio interview of Monday, March 13, 2023 which was dedicated to a discussion of the Silicon Valley Bank collapse, the role of the Fed, and the coming Fed 180 degree ‘about face’ on rate hikes (and what that means for inflation) GO TO: https://drive.google.com/file/d/18nJ5RSJWcUksFDD90o5rs6uoAZ96QO17/view
- Free Money = Toxic Money: First Republic Bank and Western Alliance Bank Make it into my Pantheon of Imploded Stocksby Wolf Richter
Banks as stock-pump schemes in the era of consensual hallucination.
- Silicon Valley Bank Collapses-Canary in the Banking Coalmine?-audioby jackrasmus
This past friday, March 10, the Silicon Valley Bank, the 16th largest bank in the US, collapsed and was seized by the US govt’s FDIC. In my morning Alternative Visions show, as this was happening, I discussed some of the implications of the crash. Since friday, March 10, two more small banks associated with the
- Weekly Market Pulse: It Isn’t A Bailout!by Joseph Y. Calhoun III
Last week started with investors focused on Jerome Powell's testimony before Congress and any hints about future monetary policy. During the course of two days of testimony, which was deemed more hawkish than expected, the market priced in another rate hike and pushed out the possibility of a rate cut all the way to January [...]
- 2 Radio Interviews: Week of March 6-10by jackrasmus
Here are 2 latest radio interviews on the US economy, jobs reports, Biden budget, etc. (Watch here soon for future interviews on the collapse of the Silicon Valley Bank on friday, March 10, and its consequences for US banking stability and Fed rate hike policy) 1. CRITICAL HOUR RADIO Show interview https://drive.google.com/file/d/1eKth6Y88yl5PSiunH8uArtIdvHmfVsl6/view 2. BY ANY
- Why the Banking System is Breaking Upby Michael
Support my work via Patreon The collapses of Silvergate and Silicon Valley Bank are like icebergs calving off from the Antarctic glacier. The financial analogy to the global warming causing this collapse is the rising temperature of interest rates, which spiked last Thursday and Friday to close at 4.60 percent for the U.S. Treasury’s two-year Continue Reading The post Why the Banking System is […]
- Demolishing 8 Retirement Planning Mythsby Bob Williams
Isn’t it what we all plan for? At some point in your life, you’ll stop working and enter “The Retirement Zone.” It will require income that may come from Social Security, retirement accounts, annuities, investments, or any number of sources. Yes, being a successful retiree requires planning. But you have to know what’s good planning [...]
- Weekly Market Pulse: What Moves Marketsby Joseph Y. Calhoun III
With the 1-year Treasury bill paying 5%, why would anyone take the risk of owning stocks? - Everyone It is a good question and I can't tell you what investors will do this year or how stocks will perform, but history says it isn't the level of rates that matters for stock returns. Believe it [...]
- 2 Radio Interviews on Ukraine, US Economy, Inflationby jackrasmus
1. (Critical Hour Radio Show: 3-3-23) https://drive.google.com/file/d/1fLl-UyPHcNOlXTQguZT4C_idTDfT9srd/view 2. (Political Misfits Radio Show: 3-1-23)
- The Lowest Medicare Part D Premiums Aren’t Always the Best Dealby Bob Williams
It’s just human nature. When we buy something, we want to pay the lowest price and get the best deal. That same principle applies to America’s seniors when they turn 65 and have to choose a Medicare Part D Prescription drug plan. The problem, though, is that choosing the lowest premium Part D plan may [...]
- Revisiting ’10 Reasons Why the US May Want Russia to Invade Ukraine’ One Year Afterby jackrasmus
by Dr. Jack Rasmus Copyright 2023 It has been roughly a year since Russia invaded Ukraine on February 24, 2022. A month before that invasion, in January 2022, this writer published an article ’10 Reasons Why the US May Want Russia to Invade Ukraine’ (see https://jackrasmus.com and other sources, LA Progressive, Counterpunch, et. al). In
- An Hour with Michaelby Michael
Come spend an hour with Michael! Thurs March 2nd 5.30pm EST Register via zoom. If you are a Patron Plus supporter on Patreon, you will be able to register. We have 247 Patreon supporters, can you get us to 250? The day before the Q&A you’ll receive an email with the link to join. Anyone Continue Reading The post An Hour with Michael first appeared on Michael Hudson.
- Trade Theory: No Room for Gunboatsby Michael
RADHIKA DESAI: Hello everyone. Welcome to the fourth Geopolitical Economy Hour, our fortnightly show on the political and geopolitical economy of our times. I’m Radhika Desai. MICHAEL HUDSON: And I’m Michael Hudson. RADHIKA DESAI: Today we are continuing our discussion of de-dollarization. As many of you know we have structured our discussion around some Continue Reading The post Trade […]
- Weekly Market Pulse: Good News Is Good Newsby Joseph Y. Calhoun III
I think everyone can agree that stocks and bonds sold off last year because interest rates rose. You might get some argument about why rates rose but the fact they did is sufficient to explain the drop in stocks and bonds. It doesn't matter if you think rates went up because the Fed raised their [...]
- Ukraine War at One Year-Revisiting My January 2022 Article ’10 Reasons Why the US May Want Russia to Invade Ukraine’by jackrasmus
This past year marks the one year anniversary of the start of the US/NATO-Russia war in Ukraine. In January 2022 I wrote a piece entitled ‘10 Reasons Why the US May Want Russia to Invade Ukraine‘. (see re-posting of that January 2022 article below). The article stated the objectives the US and its NATO allies
- Weekly Market Pulse: Patience is Requiredby Joseph Y. Calhoun III
The hardest thing about investing is the patience it requires. Markets can and do go through long periods of stagnation that test every investor's commitment to their strategy. The last year has been a tough one for investors but the frustration actually extends back further than just 2022. The total return of the S&P 500 [...]
- Is Inflation Really Slowing? – audioby jackrasmus
Listen to my Alternative Visions radio show presentation of Friday, February 17, 2023 and an in depth analysis of latest US consumer price and producer price inflation statistics. Is Inflation really slowing after a year of Federal Reserve rapid interest rate hikes? Barely so? How will further Fed rate hikes in 2023 impact inflation? To
- 3 Short radio interviews on Economic News of the Past Weekby jackrasmus
Here’s updates on my take on key economic news events of the past week (US inflation reports, Fed, etc.). 1. Critical Hour Radio (Feb. 17, 2023) https://drive.google.com/file/d/1k9v1qgdLR2o2M74l_RY2ZU0Mk8SofdiJ/view 2. Political Misfits Radio Show (Feb. 13, 2023) https://drive.google.com/file/d/1J-LWoWKSLLtmt6LSi7tFmrMDa9HqfxT1/view 3. Critical House Radio (Feb. 10, 2023) […]
- Gary Null Interview – The Rules Are Changingby Michael
An interview with Gary Null on the longstanding Progressive Commentary Hour, where he asks me to give my State of the Economy briefing. The post Gary Null Interview – The Rules Are Changing first appeared on Michael Hudson.
- Abolishing the IRSby Bob Williams
What’s that I hear? It’s very faint, but it sounds familiar. I cup my hand around my ear to hear better and, yes, I’ve heard it before. In the distance, there are shouts of “Abolish the IRS. We want a Fair Tax.” The idea of a Fair Tax was first introduced in 1999 by former [...]
- The Perks of Having an Online Social Security Accountby Bob Williams
It’s called a “My Social Security” account. It’s often thought of as something for people getting Social Security benefits. In reality, there are positives for anyone who’s working and paying Social Security taxes. Protect Your Social Security from Identity Thieves Once you set up a “My Social Security” account, you’re protected. There can never [...]
- Since Money is Politicalby Michael
“Understanding money and the dollar system,” Geopolitical Hour Episode 3, February 9, 2023, with economists Radhika Desai & Michael Hudson. podcast: Radhika Hello and welcome to this third Geopolitical Economy Hour. I’m Radhika Desai. Michael And I’m Michael Hudson. Radhika As many of you know, in this collaboration with Ben Norton’s Geopolitical Economy Report, Michael Continue […]
- The Hypocrisy Just Makes Me Cryby Michael
Danny: Greetings everyone. [We] have two very special guests today. [This] is the first conversation of a series that we will be having on The Left Lens leading into the one year anniversary of the official beginning — or at least what the mainstream may say is the beginning — of the Ukraine proxy war — really Continue Reading The post The Hypocrisy Just Makes Me Cry first appeared on […]
- Inflation’s Drivers on The Geopolitical Hourby Michael
In this episode of Geopolitical Economy Hour, economists Radhika Desai and Michael Hudson discuss inflation: what it is, what causes it, and what are the problems in how the Federal Reserve and other central banks respond to it. Transcript RADHIKA DESAI: Hello, everyone. Welcome to the second Geopolitical Economy Hour. I’m Radhika Desai. MICHAEL HUDSON: Continue Reading The post Inflation’s […]
- Introducing the Geopolitical Economy Hourby Michael
Radhika: Hi everyone, and welcome to this Geopolitical Economy Hour. I’m Radhika Desai. Michael: And I’m Michael Hudson. Radhika: Every fortnight we are going to meet for an hour to discuss major development in the fast-changing geopolitical economy of our twenty-first-century world. We’ll discuss international developments. We’ll discuss their roots in individual countries and […]
- Systemic Sponsors of Self-Interestby Michael
Q & A transcript from our 4th Patreon event. Please join Michael’s Patreon group as a Patreon Plus member, so that you too can join us and ask Michael any question at our next session in March. Karl Fitzgerald (KF): To start off with our typical end-of-year topic: How have you seen this year’s economic Continue Reading The post Systemic Sponsors of Self-Interest first appeared on […]
- China the Change Agent – Patreon Q&A #3by Michael
Each quarter, Patreon Plus supporters can ask Michael questions. Here is a transcript of the most recent one, just in time for our next Q&A this Thursday. Please support Michael’s work via his Patreon page. Karl Fitzgerald: Alright, let’s get into it. We’ve got lots of good questions. Welcome, everyone. My name is Karl Fitzgerald. Continue Reading The post China the Change Agent – […]
- Michael Hudson’s Patreon Q&Aby Michael
It’s time for our quarterly Q&A with Michael! Please support Michael’s important work via his Patreon page. Theme: NATO’s provocative role in Eastern Europe. If you are a Patron Plus supporter on Patreon, you will be able to register. Anyone upgrading to Patron Plus at least 24 hours prior to the event is invited. **Register Continue Reading The post Michael Hudson’s Patreon Q&A […]
- Oligopoly Uncheckedby Michael
Platypus interview on The Destiny of Civilization The destiny of civilization: An interview with Michael Hudson On July 15, 2022, Platypus Affiliated Society member D. L. Jacobs interviewed Michael Hudson to discuss his new book, The Destiny of Civilization: Finance Capitalism, Industrial Capitalism or Socialism (2022). An edited transcript follows. D. L. Jacobs: Can tell us Continue Reading […]
- EU Pressures – Al-akhbar Newspaperby Michael
Questions from Al-akhbar Newspaper, Lebanon. Mohammad Itmaizeh 1 – In light of the conditions that Europe is experiencing, in terms of high energy prices and the repercussions on the industrial sector, like the closure of factories and the high cost of production. In your opinion do European countries have the capacity and resources to prevent Continue Reading The post EU Pressures – […]
- War and Debt to Ruleby Michael
Cross posted from La Tribune Diplomatic International. French version Mohsen Abdelmoumen: Your analysis of Mesopotamian times and the wise rule of Emperors embodied by the practice of the Jubilee (compared to the predation of oligarchies) resonate with the Islamic economic theory which forbids riba (meaning usury) and imposes that banks and creditors share the risk Continue Reading The post War […]
- The Rentier Economy is a Free Lunchby Michael
The Real Progressives Live with Michael Hudson on The Destiny of Civilization [00:00:06] Luke Parcher: All right. For those who might not know me, I’m Luke Parcher, I’m a student and activist. I volunteer with Real Progressives. I’m on our leadership team and I also do a show on Sundays covering politics and current events, Continue Reading The post The Rentier Economy is a Free Lunch […]
- Germany’s position in America’s New World Orderby Michael
Germany has become an economic satellite of America’s New Cold War with Russia, China and the rest of Eurasia. The article this talk was based on: Germany and other NATO countries have been told to impose trade and investment sanctions upon themselves that will outlast today’s proxy war in Ukraine. U.S. President Biden and his Continue Reading The post Germany’s position in America’s New […]
- We Do Read Comments: Re Naderby Michael
Some follow up comments to my appearance on the Ralph Nader show. I am looking forward to our next Q&A session with Patreon Plus supporters this Friday. Photo by John Cameron on Unsplash The post We Do Read Comments: Re Nader first appeared on Michael Hudson.
- Please Use Zerohedge.orgby Tyler Durden
As zerohedge.com is currently experiencing technical issues, please use the following website for all the latest updates: www.zerohedge.org while we resolve our issues.
- Moving Onby Tyler Durden
Dear Zero Hedge readers and blogger fans, it is time to move on......to our new home: www.zerohedge.comFor a little over 6 months blogger has served us well, and yet it reached its limitations some time ago. Our new website, in addition to all currently existing features, now has a full RSS feed, a Contributors section, a complete term Glossary, and a full Forum for reader initiated content, and […]
- Ron Insana On HFTby Tyler Durden
Hey Ron, didn't realize your new position as a contributing editor on CNBC came with the contributing title of "Portfolio Manager." Didn't Stevie put a one year kibbosh on that? But I digress... And in all honesty I am surprised that you seem to have the correct spin on things (as per letter below from Jim Cramer's failed media experiment TheStreet). When you say: I'd prefer that regulators look […]
- 1 To 3 Years Of Securities Recalls Aka Forced Squeeze To Goby Tyler Durden
After numerous posts on this blog discussing speculation of assorted forced buy ins, it seems that this phenomenon is quite factual and quite pervasive among the asset management community. As Zero Hedge has noted previously, forced buy-ins are a critical issue as it leaves shorts at the mercy of their securities lenders and repo desks (most of which are TARP recipients and thus beneficiaries of […]
- NYSE Claims It Does Not Engage In Flash Tradingby Tyler Durden
From an interview earlier with NYSE's Larry Leibowitz, who is surprisingly vocal against Flash trading. Larry - since the NYSE does not engage in Flash trading, can you please indicate whether or not the SLP program provides advance notice to Goldman Sachs ala Direct Edge's ELP program. Regardless, the escalation in the ECN wars is starting and should be a very interesting one to follow, […]
- The Goldman VaR Exemption Question Escalatesby Tyler Durden
It seems only yesterday that Zero Hedge had some questions in regard to Goldman's VaR Fed exemption. No response was received from 85 Broad. Today it appears several Congressmen, lead by Alan Grayson, are willing to drive a sharp stick pretty deep into the hornets' nest, by sending a letter directly to Wall Street Don Ben Bernanke, demanding an explanation exactly to the question of Goldman's VaR […]
- Schumer Letter To Mary Shapiroby Tyler Durden
"I write out of concern that the integrity of our capital markets is being compromised by the ability of some insiders to view order information before it is available to the entire market, and use electronic trading strategies to profit from that information at the expense of other investors."Full letter here:Schumer Letter
- Goldman's Ed Canaday On The Requirements For High Frequency Trading Oversightby Tyler Durden
Damage control... Or is Goldman a little worried what Direct Edge may disclose.From the appended Schumer piece on Bloomberg:“Goldman Sachs believes high-frequency trading should have an accompanying obligation to provide liquidity, and be subject to appropriate regulatory oversight,” Canaday said.Ed, we have been giving you the chance to provide your side of the story for months. Please take […]
- Paul Tudor Jones Exposedby Tyler Durden
The mythical "TRADER - The Documentary" is finally available on You Tube. Relevant "full frontal" insights on the making of a hedge fund legend, and a paleolithic market dominated by monochrome PCs (what, no Bloomberg?), running to the municipal library for that 10-K, and no Flash orders frontrunning every trade. Part 1, and related series (2-7) are on You Tube.hat tip j.m.
- The ETF Gloves Are Offby Tyler Durden
Bearish bets made impossible, compliments of UBS. Either that, or UBS' recently upgraded (with i7 chips of course) computers just cant handle the basis calculations. Either way, is something very fried with ETFs going on behind the scenes? IMPORTANT NOTICE: Inverse, Leveraged and Inverse-Leveraged Exchange Traded Funds are no longer available for new or additional purchases at UBSEffective July […]
- Daily Highlights: 7.27.09by Tyler Durden
Administration looking for Chinese help to narrow trade gap and boost US jobs.Advertisers are getting cheaper rates than a year ago on television commercials.Aetna 2Q profit dropped to $346.6M due to greater commercial expenses and cuts full year forecast.Asian markets were higher Monday on hopes for further earnings recovery, Nikkei hits 10,000 mark.China's new small-company stock exchange gets […]
- Frontrunning: July 27by Tyler Durden
Tenacious G - Is Goldman Sachs evil? Or really good? (NY Mag)Bernanke feared a second great depression; he may still very well get it (WSJ)Europe braced for rising credit card defaults (FT)Loans by U.S. banks shrink as fear lingers (WSJ)Credit crunch part deux (Merk Mutual Funds)Real yields highest since 1994 aid record debt sales (Bloomberg)Ryanair plunges on outlook for fares, earnings […]
- The End Of The End Of The Recessionby Tyler Durden
Zero Hedge, in collaboration with David Rosenberg, Chief Economist & Strategist, Gluskin Sheff + Associates, Inc., is pleased to release the attached analysis "The End Of The End Of The Recession." It is our hope that this piece will provide some badly-needed perspective on "the recession is over" debate, a topic that has become as one-sided as it is wrong-headed. Our purposes is to promote […]
- Some Weekend Thoughts By John Mauldinby Unknown
Some interesting stuff in John Mauldin's latest piece. We'll include some pertinent quotes along with our thoughts.China is growing by about 8% a year, which is amazing on the surface of it, as their exports are down about 20% (more in some sectors). How can that be? I continually read about how China is going to lead the world out of its global funk. And 8% growth in GDP does seem pretty strong. […]
- Guest Post: 30 Year Review Ahead of Short Term Auctions, Q2 adv-GDP and Aug 7 NFPby Tyler Durden
Submitted by John Bougearel of Structural Logic
- Weekend Readingby Tyler Durden
Must read: Fast-on-the-draw trades need spot of marshalling (FT, h/t Joe)Roubini Op-Ed on Bernanke: The Great Preventer (NYT)Lennar signals fleeting buildling rally as buyers flee (Bloomberg)JP Morgan to raise banker salaries (FT)The man spreading false rumors about Harman and Textron takeovers (that fooled fast-money's Najarian) found dead in suicide (Bloomberg)Chinese steel executive beaten to […]
- JPM's Carl Carrie On Algorithmic Tradingby Tyler Durden
When the former head of product development in the electronic client solutions group at none other than JP Morgan, Carl Carrie, was last quoted on Zero Hedge, he had some very nasty words for High Frequency Trading. Today, in a podcast transcript by algotradingpodcast Carl shares much more light in just why any reform movement against HFT and PT in general will be met by a huge pushback by […]
- The Flash Trading Org Chartby Tyler Durden
Zero Hedge will attempt to categorize all the relevant players in FlashTradingGate. This is the initial focus of Senator Charles Schumer's recent campaign for market equality and transparency. As we will undoubtedly miss critical connections between these and other pertinent industry players, we solicit readers' insight as we develop this org chart: we invite readers to send emails to: […]
- HFT And Goldman Sachs Boiling Point: NYT And Max Keiserby Tyler Durden
Great recap piece in the New York Times on whether or not Wall Street is picking the pockets of "non-club" investors (read - the guys who do not generate 80% returns with a Sharpe > 5.0 - can someone explain how risk/return works again). The consensus sure looks good for class action lawsuit lawyers. The piece also recognizes the tremendous contribution that Zero Hedge's readership has had in […]
- The New Model?by Tyler Durden
It seems 1-2's and Marla's post earlier could not have come at a more opportune time. In a presentation by Andrew Gluck of Advisor Products, the author touches on some starkly comparable points (and, usefully, those with acute ADHD may find this presentation a tad more palatable, hehe, just kidding Marla) in the context of the epic paradigm shift occurring in the media world. Zero Hedge […]