My convo with a wealth manager at a megabank who's been at it for 30 years, has seen three crashes while on the job, but unlike others in finance, hasn’t re-forgotten the lessons for the third time.
Entries in Wall Street shenanigans (206)
The smart money had a goal, which it now reached via the “multiplier effect” by which a small number of sales can have extreme consequences in price for the rest.
It's been glorious: global M&A in Q2 soared 47% to $1 trillion, highest since 2007, just before the financial crisis. In California, 30% of the people making less than $40k were in worse financial shape than last year, despite all the bubbles being inflated around them.
Banks are again taking the same risks that triggered the financial crisis, and they’re understating these risks. It wasn’t an edgy blogger that issued this warning but the Office of the Comptroller of the Currency. And it blamed the Fed’s monetary policy.
By David Stockman: Coach just had an earnings fiasco. Sales plunged 21%. Prospects are worse for the period ahead. Store closings are coming. That's the payoff for playing the destructive game of the Wall Street casino.
So what happens when these huge and reckless buyers with their nearly endless resources start cutting back after a phenomenal peak? Well, we know what happened in 2008.
By David Stockman: The headline is a thunderbolt: “Fed Looks At Exit Fees On Bond Funds”—exit fees designed to stop small investors from exiting bond funds in a crisis. But it could trigger the very kind of run on bond funds it’s designed to prevent.
By Lee Adler: Here’s something I missed that started back in May, and it just got bigger. It makes me mad as hell. And it should make you mad as hell too.
It always starts with a toxic mix: Home sales plunged and inventories jumped in May. The housing market is buckling under its own inflated weight.
By Dan Ferris: Buffett is the greatest investor, the "gold standard" for ideas about corporate governance, the bastion of good corporate behavior, a virtuoso capitalist, an unbeatable teacher. Or was. And now, I'm telling readers to sell his stock.
There comes a time when risk just disappears, when nothing can go wrong, when there are no dark clouds on the horizon. The Fed has a measure for it: the Financial Stress Index.
The European economy has been on a phenomenal roll since 2012, according to the soaring Stoxx 600 stock index. Recessions, unemployment fiascos, toppling banks, collapsing auto sales... they didn’t exist. But what the heck is wrong with this picture?
Record bullishness about the S&P 500! But beneath the largest stocks, volatility has taken over ruthlessly, the market is in turmoil, people are dumping stocks wholesale, dreams and hopes are drowning in red ink, and Wall Street doesn't want you to see it.
How the most important “data” Wall Street hands out via its army of analysts to rationalize lofty stock valuations is consistently (chart!) the biggest hoax out there.
By David Stockman: The ECB launches QE in financial drag by purchasing the kind of “toxic-waste” that took down the US financial system; but it proclaims it’s not “monetizing” any stinking sovereign debt! What it’s really up to is snookering the German sound-money camp.
This chart shows how the vision of US liquefied natural gas exports to free Europe from Russia’s clutches or make big bucks off energy-starved Japan is nothing but a juicy lure in the big money game.