Category Archives: Credit markets

As US Markets Look a Bit Wobbly, the Press Looks for the Next Crisis in the Rear View Mirror

The Wall Street Journal worried about the giddy mood at the annual structured industry conference. But is where to look for the next crisis?

The GENIUS Act: Setting the Stage for a Federal Bailout When Stablecoins Become Insolvent

Why the GENIUS Act does not live up to its pretenses of making stablecoins safe, thus setting the stage for a Federal bailout.

DOGE Taketh Away From the Many as Trump Pays Off Crypto Bros With New “Strategic” Fund, Above All, Crypto Czar David Sacks

We warned that crypto was closely aligned with criminal activity. The open grift of the new “strategic” Trump fund proves that case.

Jane D’Arista on How the Failure of Global Finance Is Systemic

Jane D’Arista describes the internationalization of finance and how is has produced not just crises but fundamental economic distortions

How Climate Denial is Fueling a U.S. Homeowners Insurance Crisis and Risking a 2008-Style Financial Meltdown

A climate-change-driven insurance and eventual mortgage/housing price crisis is getting momentum. And unlike 2008, price recovery is unlikely

Mr. Treasury Market Tells Fed It Is Even More Worried About Inflation

The Fed vigorously backpedaled on further cuts, pivoting to wait-and-see, due to long-term rates signaling inflation concerns.

The Execution of the CFPB: Capitalism Survives Another Attempt to Save It

A discussion of Elizabeth Warren’s naivete about the predatory nature of capitalism.

Wanting More for BRICS Than BRICS Wants for Itself

More realistic takes on BRICS, including by Michael Hudson.

China’s Government Bond Market Sounding Loud Deflationary Alarm. Is the Japanification China Has Warded Off Finally Arriving?

China’s investors are in freakout mode about deflation risks. Can its government turn the fundamentals around?

Wall Street Journal Tries “Recovery Finally Underway” Office Space Patter as Securitized Office Mortgage Delinquencies Hit a New Post-Crisis High of 10.4%

The Journal gets egg on its face for trying to call a bottom in the office space market even as delinquencies were accelerating

Nissan in Crisis, “12 or 14 Months to Survive,” as Size, Difficult Conditions for Non-China Carmakers Make Rescue Seem Remote

Nissan, with intensifying cash flow woes and vultures circling, looks like a canary in the coal mine for non-China carmakers.

Longer-Term Treasury Yields & Mortgage Rates Explode, Yield Curve Un-Inverts Further as Bond Market Gets Spooked

Stock jockeys love Trump and bond vigilantes do not. What do their diverging views say about the prospects for the US economy?

Michael Hudson and Richard Wolff: BRICS High Aspirations Versus Cautious First Steps

Michael Hudson and Richard Wolff discuss the recent BRICS summit as well as its rapidly-evolving geopolitical backdrop.

Wolf Richter: Boeing Launches $22 Billion Share Offering to Get Breathing Room, Dodge Junk Credit Rating, after Having Wasted $64 Billion on Share Buybacks

With the equity raise as outlined today, the company will have some limited financial breathing room, and will likely avert a near-term down grade to junk, so one day at a time.

Private Equity Pummeled by Higher Interest Rates as Portfolio Companies and Credit Funds Struggle; Use of PIK Loans Now Recalls Late 1980s LBO Crisis

More and more private equity and private credit deals are looking over-extended. How bad might things get?