Not a good situation for the banks holding commercial property loans. Their collateral is falling in value as their borrowers have trouble repaying or refinancing their loans.
The Road to Argentina
There are only two ways to resolve the debt crisis — either inflation or deflation. Either the bad debt (as much as US$50 trillion of it, by our estimate) gets written off or inflated away.
‘All Hell Broke Loose’
Never before has tomorrow had so much to work with — so many people with college degrees, so much capital — trillions of it — sloshing around Wall Street, so many inventions, innovations, and technical breakthroughs…and over all of it, a class of elite deciders
The ‘Stealth Pivot’
What a week! Another exciting mix of the absurd, the ominous, and the sublimely ridiculous. Most likely, the Fed will publicly announce another rate increase this week…and continue with its inflation agenda, without mentioning it.
Hunting Icebergs
The middle class is getting attacked on both flanks. Its wealth falls along with house prices. And its real income falls as consumer prices rise. Adjusted for inflation, wages have fallen for 23 months in a row; for nearly two years, ordinary households have gotten poorer.
The Fed’s Magic Elixir
The second largest…and third largest…bank failures in US history continue to dominate the financial headlines. From CNN Business: ‘Dow falls 500 points as banking fears spread’.
Heaven and Hell
Will Credit Suisse be next? Will it push investors and the Fed into a panic? Will the Fed publicly reverse course and begin cutting rates?
One Giant Mess
Quick summary: It’s been a tough couple of weeks for financial markets. It started with the Chinese government’s lowered 5% growth target and renewed concerns of a property market crisis…but the icing on the cake is the SVB banking collapse in the US. As a resource investor though, China remains the central theme to the commodity outlook. So, are economic predictions of a major China slowdown REAL? We’ll try to uncover the real story today. Read on to find out more…
Crack…Crack…Crack…
Having created a dangerous and debilitating debt bubble, the Fed’s now determined to take the air out of it…as long as higher interest rates don’t cause too much trouble.
Are We ‘Too Negative’?
My colleague Tom Dyson just asked dear readers what they thought of our service. Many remarked that your editor was ‘too negative’.
