Office of Financial Research Warns of Corporate Debt Defaults, Particularly Related to Energy Loans, as Stability Risk
Nothing like the downgrades and the prospect of default to focus the mind….
Read more...Category Archives: Economic fundamentals
Are Economists in Denial About What’s Driving the Inequality Trainwreck?
Today’s richest Americans may soon blow past the tycoons of the Roaring Twenties.
Read more...Former BIS Chief Economist Warns of Massive Debt Defaults, Need for Debt Jubilee; Fingers Europe as First in Line
Even though the former chief economist of the BIS calls for a debt jubilee, it’s only part of the medicine needed to get the economy out of the ditch.
Read more...Wolf Richter: Moody’s Explains Why Junk Bonds Will Sink Stocks Further
Why the high risk spreads in the junk bond market bode ill for the stock market.
Read more...Ilargi: Square Holes and Currency Pegs
The difficultly of maintaining currency pegs, most important the renminbi and riyal versus the dollar, will put even more stress on financial markets.
Read more...The 0.1%’s Marie Antoinette Moment
A card-carrying member of the 0.1%, Steve Schwarzman of Blackstone, has reveled himself to be dangerously out of touch.
Read more...Robert Reich: Why the White Working Class Abandoned the Democratic Party
The history of the political calculus that led the Democratic Party to turn its back on its traditional base, the working class, and how that’s coming back to bite now.
Read more...Funds Hold Most Cash Since GFC
Fund manager cash holdings are at crisis-bottom levels, typically a sound bullish indicator. But will history predict the future this time?
Read more...US Oil Futures Plunge by Nearly 7%, to $26.55 a Barrel; Stocks Swoon
Oil has ratcheted down again and stocks are getting hammered.
Read more...Ann Pettifor: Why Radical Monetary Policy Failed in the UK
The failure to use fiscal policy in tandem with monetary policy means that the timid and short-sighted private sector has lacked confidence to ratchet up investment in productive, income-generating activity – as opposed to speculative activity.
Read more...Investment Manager GMO Debunks Mythology of “Sound Finance,” or Deficit Hawkery
Yves here. Sometimes it is best to let things speak for themselves. In that spirit, I am embedding a very important paper by the well-respected investment management firm GMO which debunks the tenets of “sound finance,” meaning the claim that governments need to balance their budgets. I expect to be referring to it regularly, particularly […]
Read more...Don Quijones: “Everything Has Come to a Standstill”- Political Fallout Hits Business in Spain
By Don Quijones, Spain & Mexico, editor at Wolf Street. Originally published as Wolf Street. On Friday, Spain’s benchmark stock index, the Ibex 35, plumbed depths it had not seen since the worst days of 2013, the year that the country’s economy began its “miraculous” recovery. Of the 35 companies listed on the index, 15 […]
Read more...Edward Lambert: Forecasting the Stock Market thru Effective Demand
Dave here. The markets have taken a beating in 2016, and while the fallacy of thinking the market=the economy seems like an oversimplification, this post provides a competing viewpoint that, without taking a position in affirmation or dissent, I thought I would offer up for discussion. For some background, you can read Edward’s other posts […]
Read more...Capitalism Versus The Social Commons
How the struggle over who controls the commons, the monied classes or a broader group of citizens, reveals the fundamental contradictions of capitalism.
Read more...Eurozone Delays and Half Measures
Are the eurozone’s continuing woes the result of its incomplete construction or because of policy errors in responding to the crisis?
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