Independent thinking for complex markets and current events
Yields moving higher quickly today are a reminder that interest expense is skyrocketing at a terrifying pace because rates started moving up with ever-rising debt levels over the last two years, after being suppressed by low Fed Funds rates and QE policies in the years prior. pic.twitter.com/mxEMpkotTb — David Sommers (@dgsommersmkts) May 28, 2024 The …
The commercial real estate sector continues to experience elevated stress. The latest crack to emerge is the increasing number of delinquencies on multifamily mortgages. The borrowers who took out these loans typically used them to purchase multifamily complexes, intending to renovate and flip them at a profit. However, many are now struggling with their floating-rate …
Last December, wholesale retailer Costco announced that they had sold over $100 million worth of gold in Q3 2023. Now, Wells Fargo estimates that Costco “may now be running at” $100 million to $200 million per month in gold sales. “Our work suggests there has been significant interest given COST’s aggressive pricing and high level …
The 2023-2024 norovirus season is well underway in the United States. Cases of the highly contagious stomach bug, which causes diarrhea and vomiting, are climbing steadily across the country. Although it’s commonly called the “stomach flu,” norovirus is not actually related to the flu, which is caused by influenza viruses. Norovirus is a leading cause …
The rise of defaults and bankruptcies are just in the early stages. Plus, the dollar exposure is gigantic (CRE alone is $1.2T of distressed assets). Numerous small & medium size banks failures are coming to a community near you. — cynical1 (@eb10s) February 17, 2024
LOST DECADES: Chinese Hang Seng Index is now trading below 1997 levels following Evergrande announcement #China is a must watch! Let's see if #liquidity works this time… pic.twitter.com/XQR5XrZs7Z — CrossBorder Capital/ GLIndexes (@crossbordercap) January 30, 2024 h/t AdAlarmed69
As we enter 2024, once thriving US high streets are starting to resemble desolate ghost towns as America is taunted by the ever-looming threat of yet another financial crash. If the economy is thriving then why are we seeing more bank closures than ever before and why are retailers being forced to shutter many of …
The surge in congenital syphilis cases challenges the CDC’s claim that racism is the primary cause, as the numbers sharply increased regardless of racial disparities. In 2022 alone, cases rose to 3,700, leading to 51 deaths and 231 stillbirths. This alarming trend prompts a critical examination of the factors contributing to the epidemic. Simultaneously, the …
A sudden spike in SOFR (Secured Overnight Financing Rate) points to a mounting reserve shortage and an overnight repo spike, surprising many as SOFR printed at 5.39% on Friday. This departure from the market’s accustomed pattern, where overnight Repo GC rates spike without a corresponding rise in SOFR, underscores the imperfections of SOFR as a …
The rise of Geert Wilders and the anti-immigration PVV party in the Netherlands, securing 35 seats and becoming the largest party, sends a powerful message about the growing influence of nationalist sentiments. In the face of his impending victory, the ban on Wilders from speaking about mass immigration in the U.K. in 2009 takes on …
The collapse in the Producer Price Index (PPI) signifies a critical shift, as companies find themselves unable to command exorbitant prices from customers, leading to a significant impact on their profit margins. The era of making extraordinary profits and refinancing at 0% appears to be coming to an end, exacerbated by the Federal Reserve’s decision …
The soaring US budget deficit, which surged to $2 trillion for the fiscal year ending in September, growing twice as fast as the economy itself, exemplifies the reasons behind the 5% yield rates. This deficit spike is primarily attributed to falling revenues, alongside increased spending on debt servicing, Social Security, and Medicare. The US government …
China is surging NUCLEAR weapons production, will DOUBLE its arsenal to 1,000 warheads by 2030, and is exploring new intercontinental ballistic missile system to threaten U.S., Pentagon warns China already has more than 500 nuclear weapons That is more than U.S. officials previously thought military intelligence 2 words combined that cant make sense Beijing slammed …
The sharp increase in credit card losses, coupled with the rise in evictions and loan delinquencies, paints a bleak picture for the economy, reminiscent of the challenging times during the Great Financial Crisis. Food Prices up Over 20%, Credit Card Delinquencies Now Higher As Credit Card Debt Grows on Inflation Despite Paul Krugman’s assurance that …
Canadian mom has gone viral sharing her savings from grocery shopping in US Brandi Dustin crosses from BC into Montana for her weekly grocery trip Canadian government is under pressure to combat soaring food prices A Canadian mom is going viral after sharing her big weekly savings by crossing into the US for her grocery …
Delinquency rates on credit card loans and auto loans are rising. But delinquency rates on mortgages as near all time lower. Why? Because so many mortgages are locked-in to low rates. Truly a unique time. Follow us @KobeissiLetter for real time time analysis as this develops. — The Kobeissi Letter (@KobeissiLetter) October 11, 2023
The current situation in the US financial landscape is a cause for concern. It has been known that the top 5 US banks are over-leveraged, which can be a recipe for disaster. Over-leveraging can make these banks vulnerable to financial downturns and economic shocks. This vulnerability is further highlighted by the fact that companies are …
by MeowMeowTiger Chuck roast was $5/lb at my local walmart in 2019, $6.5 last year, and $7.5 now 🙁 A 50% increase in price. I eat at least five pounds of chuck roast per week (I don’t eat poultry and rarely eat pork), so it costs a lot of money to me. A local restaurant …
JUST IN – India's retail inflation rose sharply to 7.44% in July due to surging food costs. — Disclose.tv (@disclosetv) August 14, 2023 Retail inflation in July breached the upper-end of the Reserve Bank of India’s tolerance level for the first time in five months due to surging food costs, reinforcing the central bank’s concern …
