“Why worry if the price can only go up” – Societe Generale’s Head of Quantitative Equity Research. Now even after companies cut earnings-per-share estimates, their stocks go up. Because everyone believes that everyone believes that....
March auto sales trickled out today. Beneath the wondrous hype about how they’d finally exceeded expectations, after they’d been perfectly awful for five of the prior six months, was a doozie. And the media, which normally fawns all over Tesla, covered it with a blackout.
By James Burgess: In the Lone Star state, famous for oil and gas, the wind industry hit a new record for power generation – and leads the US by far in installed capacity.
Sunday, when no one was supposed to pay attention, PayPal sent its account holders an innocuous-sounding email with the artfully bland title, “Notice of Policy Updates.” PayPal didn’t want people to read it – lest they think the NSA is by comparison a group of choirboys.
By Bianca Fernet: “Head in hands” photos or “plunging value” graphs that are traditionally displayed when markets fall were selected to accompany news that Argentine warrants tied to GDP crashed when the government revised 2013 GDP growth down to 3%.
By Michael Lombardi, Profit Confidential: There are two important facts about our rising national debt that don’t get a lot of mainstream attention (and I certainly don’t hear politicians talking about them).
Margin debt is a crummy predictor of a crash. But it has a bone-chilling habit of peaking right around the time stocks do crash. In the last fifteen years, it spiked three times: during the final throes of the bubbles that imploded in 2000 and 2007; and now.
By Don Quijones: It was the first nationally coordinated grassroots response to repressive social and economic policies and widespread corruption of Spain’s ruling political caste. But it descended into violence – as the government is playing a dangerous game.
The word dollar didn’t even come up when the Bundesbank signed the agreement with the People’s Bank of China. President Xi Jinping and Chancellor Angela Merkel looked on. It was serious business. Everyone knew what this was about. No one had to say it.
By David Stockman: China, the greatest construction boom and credit bubble in history, has gone mad building, borrowing, speculating, scheming, cheating, and stealing. The source of this outbreak is monetary madness with a red accent.
By Nick Cunningham: That the US could unleash a flood of oil from the Strategic Petroleum Reserve to drive down prices has been pushed for weeks, most recently by George Soros, but has been dismissed as not a serious option. Then Obama went to Saudi Arabia.
This winter, polar vortices sent the price of natural gas into dizzying spikes and plunges, head fakes, and whiplash-inducing turnarounds. But now winter is petering out, and we’re left with a peculiar situation.
By David Stockman: The Fed prints $4 trillion and the national debt jumps $9 trillion in six years. We’re now in month 57 of the expansion, beyond the average 53 months – already on borrowed time. Now comes Professor Krugman proposing to “do something.”
By Eva Galperin and Danny O'Brien, Electronic Frontier Foundation: Sophisticated surveillance seems unlikely for one of the poorest countries. But now you can be spied on not only by the NSA but by any government with a few hundred-thousand bucks to spare.
By Michael Lombardi, Profit Confidential: Copper is an industrial metal; when the price falls, it can be an indicator of a global economic slowdown. But gold is used as a hedge against global uncertainty. And the gold-to-copper ratio is now sending a strong signal.
What can possibly go wrong with stocks these days? Five years of the Fed’s QE and zero-interest-rate policy, and look what happened: risks no longer exist. They’ve been priced out of the equation. But now the illusion is ending.
By John Daly, Oilprice.com: On 14 February, the Waste Isolation Pilot Plant near Carlsbad, NM, admitted belatedly that a radiation leak exposed 17 workers to radiation. They’d inhaled plutonium and americium particles. That’s when the complications started.
Japanese corporations no longer even try to invest in Japan, but they’re falling all over each other grabbing the Bank of Japan’s freshly printed dough to invest it overseas.
Stocks down, bonds down, ruble down, interest rates up: the pinpricks of the sanction spiral are painful – for foreign investors.