The FED has officially wasted their ultimate

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by Vi0lentByt3 Barely a week into the unofficial self quarantine and papa J has already wasted one of the FEDs most powerful tools, literally just buying every fucking bond they can. It was said here before, the Federal gov is throwing money at a problem that doesnt accept cash. There is no way to prop … Read more

America Throwing Elderly to the sideline to save the markets

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by megachirops95 Tx Lt Gov Dan Patrick says grandparents would be willing to die to save the economy for their grandchildren pic.twitter.com/wC3Ngvtsbj — Andrew Lawrence (@ndrew_lawrence) March 24, 2020 LT Gov. Dan Patrick went on fox and said that Grandparents should die so the whole country shouldn’t be sacrificed.    

75% of small businesses cannot last a month with zero revenues. Morgan Stanley expects initial jobless claims to rise to 3.4 million

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75% of small businesses cannot last a month with zero revenues. The median cash buffer is 27 days. This is why we need serious supply measures to allow businesses to survive a mandatory shutdown. pic.twitter.com/XpeQPi2sK4 — Daniel Lacalle (@dlacalle_IA) March 24, 2020 More than 47,000 U.S. chain stores have temporarily shut their doors. “In the … Read more

China’s economic slowdown and nascent recovery in charts

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by cefpodoxime FT China economic activity index https://ig.ft.com/autograph/graphics/china-economic-activity-indicator.svg?frame=webM FT China subindices https://ig.ft.com/autograph/graphics/china-economic-activity-indicator-subindices.svg?frame=webL Shanghai composite stock index stood at 3115 on Jan 13 before China shutdown. Then it fell to a short term bottom of 2746 on Feb 3, recovered to 3071 on March 5, before plummeting past it’s nadir now (2660 right now on March 23). Perhaps … Read more

Helicopter Money: Short-Term Relief Won’t Cure our Financial Disease

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by Charles Hugh-Smith The collateral supporting the global mountain of debt is crumbling as speculative bubbles deflate. A great many freebies are being tossed in the Helicopter Money basket. That households experiencing declines in income need immediate support is obvious, as is the need to throw credit lifelines to small businesses. But beyond those essentials, … Read more

Here comes first of many High Yield defaults… Junk bond default rate to triple within 12 months, S&P says

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here comes first of many High Yield defaults$NMG #NeimanMarcus pic.twitter.com/FyQXGcUXCd — Gold Mansacks (@Gold_Mansack) March 23, 2020 $HYG $JNK $BKLN $LQDJunk bond default rate to triple within 12 months, S&P says – CNBC*S&P Global Ratings said the default rate for high-yield, or junk, bonds is heading to 10% over the next 12 months, more than … Read more

Spend! Spend! Spend!

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by Shaun Richards The weekend just passed was one which saw one of the economic dams of our time creak and then look like it had broken. This was due to the announcements coming out of Germany which as regular readers will be aware has a debt brake and had been planning for a fiscal … Read more