S&P Global Ratings revealed that corporate defaults reached a total of 16 in August.
Read more: t.co/9aNUPiiD0A
— unusual_whales (@unusual_whales) September 13, 2023
Providing a visual pic.twitter.com/jTSPphi6pz
— Game of Trades (@GameofTrades_) September 13, 2023
The sudden shifts in consumer behavior should not come as a surprise.
We went from record levels of stimulus to the fastest rising rates in history.
Consumers got used to "free" money and are now borrowing to compensate.
Follow us @KobeissiLetter for more as this develops.
— The Kobeissi Letter (@KobeissiLetter) September 13, 2023
One of these things is not like the others
If recession was to begin in Q4, the time to buckle up would be right now. Not measurable in real time, but the worst equity market outcomes begin ~2 months prior to recession until ~4 months prior to recovery
Not a forecast, just FYI t.co/5P2hxrlnDS pic.twitter.com/vAJuyqwwBo
— John P. Hussman, Ph.D. (@hussmanjp) September 12, 2023
American Airlines off -25% into the earnings "warning…"
**AAL SEES 3Q ADJ EPS ABOUT 20C- 30C, SAW 85C TO 95C.#Energy #oilandgas pic.twitter.com/HIQ9ErnuSh
— Lawrence McDonald (@Convertbond) September 13, 2023
Mortgage market plummets further week/week
Lower than worst GFC readings
-.8% w/w to 182.2, prev 183.6 pic.twitter.com/twHv3n4D68
— Don Johnson (@DonMiami3) September 13, 2023
Long big tech, short China are the most popular trades with fund managers surveyed by BofA pic.twitter.com/QCPMHwL3VO
— Markets & Mayhem 🤖 (@Mayhem4Markets) September 13, 2023
We Are at the Point of Another Global Financial Crises: Rickards
China is facing a severe crisis with its wasted investment, leading to a debt trap and a lack of transition to consumption-driven growth. New challenges, including financial panic and corporate failures, could trigger a global financial contagion. The collapse of shadow bank Zhongrong International Trust is one example, and regulators are struggling to respond. China’s stock markets may plummet, leading to a potential collapse that will affect global markets, including the United States. Investors should prepare for a U.S. stock market crash, bank failures, and mounting bad debts.
Kyle Bass Predicts Banks Could Lose Quarter Trillion Dollars in Office Market Collapse
The financial market’s March panic over regional banks’ exposure to the struggling commercial real estate and office sectors is now forgotten, but the underlying fundamentals have worsened. Kyle Bass predicts the US banking industry will lose hundreds of billions of dollars due to office market exposure. He expects a 10% hit to US banking equity. Morgan Stanley also foresees significant declines in commercial real estate prices, especially for office space, expecting a 27.4% drop from peak to trough in 18-24 months.
Economist Warns: Crashing Office Market Deepens ‘Doom Loop’ for U.S. Cities
The declining demand for office space is pushing major US cities towards an economic crisis, warns Columbia professor Stijn Van Nieuwerburgh. Cities like Atlanta and Chicago face historic vacancy rates. This decline threatens states’ revenues from reduced property taxes. Consequently, tax rates may spike, and office property values could plummet by 35%. Additionally, banks with significant exposure to the $600 billion office building debt are in jeopardy.