THE WOLF STREET REPORT Wolf Street
My husband and I went to a store to buy hiking boots for both of us. I picked a pair and asked if they had another color. They said they had one online and would ship it to my home for free. They also gave me a 20% off code for my next purchase. So my husband liked a pair that wasn’t his size. He got his size from them online with the 20% off.
Actived: 4 days ago
How a Landlord of Neighborhood Malls Deals with the
9:40 – 10:00 am: Treasury Coupons 7 to 20 year sector, for around $6 billion 10:30 – 10:50 am: Treasury Coupons 4.5 to 7 year sector, for around $11 billion 11:20 – 11:40 am: Treasury Coupons 2.25 to 4.5 year sector, for around $17 billion 12:10 – 12:30 pm: Treasury Coupons 0 to 2.25 year sector, for around $25 billion
Cash Gone Nuts: Treasury General Account Drops to $674
A massive source of liquidity is approaching peter-out moment. By Wolf Richter for WOLF STREET. The excess balances in the federal government’s checking account – the “Treasury General Account” (TGA) at the Federal Reserve Bank of New York – that had ballooned to $1.8 trillion by July 2020 plunged to $674 billion as of Wednesday, according to the Fed’s balance sheet, released today
Here’s What’s Hiding Behind the Massive Seasonal
Sales at Restaurants & Bars rose 6.9% in January from December to $55 billion (seasonally adjusted), roughly in the same range since July. This was down 16.9% year-over-year: Sales at general merchandise stores (minus department stores) rose 2.5% in January from December, to $53 billion, and were up 8.0% from a year ago.
Then Why Is Anyone STILL on Facebook
If i want to post pictures of my dog and 2 cats and Facebook sends me coupons for 50% off my favorite dog/cat food, I am grateful. If I am shopping for a new lawn mower and Facebook sends me all of the latest deals at Lowes, Home Depot, and Sears, I am also grateful.
Unemployment Crisis, “Labor Shortage,” or Out-of-Whack
Long-term dismal employment-population ratio. The employment-population ratio, which compares the number of working people to the working-age population (16+ years old), ticked up to 57.9% but remains dismal. It had been dismal even before the Pandemic, having peaked two decades ago. It always drops during a recession.
Where You Pay the Mostest and Get Approved the Leastest
It always amazes me how people who will spend hours negotiating $200 off the price of a car, will blindly sign a check for $5000 in closing costs to buy a house. When in fact, that $5000 could easily be negotiated down t o $3000 or less.
Forget 2% Inflation. With Margins Forcefully Squeezed, Big
Appian, Okta, Twilio, Zynga, Shopify, Workday, PayPal, Trade Desk, Slack (ok, a dog), Zoom (didn’t know covid was coming but it was a great surpise return). Some of these are way off their highs but they are very volatile stocks and even with some them off double digits from their highs I’m still up 100-200% or more on them.
The State of the American Debt-Slaves Q2 2020: The Credit
The Credit Card Phenomenon.. Revolving consumer credit consists of credit card debt and other revolving credit such as personal loans. Credit card debt by itself – a data set that the New York Fed provided in its Household Credit Report – fell by $82 billion in Q2, to $820 billion.. Credit card debt generally declines in the first quarter, as consumers try to get over the hangover from the
It’s Just Day 22 of CoronaCrash, and It’s Already Such a
From the intraday high to the close, the S&P 500 plunged nearly 6%. Over the past 22 trading days, it has plunged 31.9%: This move put the S&P 500 back where it had first been on February 9, 2017. Over three years of gains gone up in smoke in less than a month. However, the crazy volatility of the past two weeks seems to have lessened, with the
Yield Curve Gets Ugly, 10-Year Treasury Yield Falls Below
This was FDR’s Lite Version of “going off the gold standard”. In 1944, the Bretton Woods treaty made the USD the world reserve currency by allowing signatories to the treaty to exchange their reserves of dollars for gold at the fixed price of $35.
THE WOLF STREET REPORT: The Giant Sucking Sound of
as costs rise, I continue to cut, getting less and less for the same amount of money. I gave up my car, turned off my cell, and moved out of California, where I was born, to move to the southeast. Here at least I have a comfortable home with a roof over my head that’s paid for, and there are trade-off’s, I have some land.
Making Money Coming and Going: Why Wall Street Loves
The IMF swoops in and bails out Argentina with tens of billions of dollars in loans – such as $44 billion in loans in 2018 and 2019. A year later, Argentina has burned through these bailout dollars and finally defaults on its dollar-euro-CHF bonds that by …
Swiss National Bank’s Monetary Racket, US Stock Holdings
We’ll also look at its garbage pile at the bottom. These folks don’t even pretend to be stock pickers. They buy and let it stick till it falls off on its own. The Swiss National Bank, which filed its disclosure of US stock holdings today with the SEC, has figured out the best money racket of all times.
My Random Walk Down Junk-Bond Minefield: How I Lost 77%
It was junk-rated. And the company was owned by PE firms following a leveraged buyout, and was struggling, which should have been a warning to creditors. But because the coupons were 8.75% and the yield was near there, it was just too juicy to pass up. Happens a lot. “Chasing yield” — one of the most expensive things an investor can do.
“Yield-Curve Inversion” Consensus Rouses Contrarian in Me
They are NOt coupon clippers who gets puzzled by why would I clip coupons off 10 year while I can clip sale or better coupons on 2 years. Default risks are usually hedhed by default swaps and rate move is hedged by rate futures product.
Consumers and Businesses Buckle under their Debts Wolf
I found out they now accept expired coupons no matter how old and they also accept multiple coupons on the same transaction. I recently used two $5 off on one transaction which was good but somebody else buying the same thing paid $10 more. If I hadn’t had the two coupons I …
How the Crybabies on Wall Street Try to Force the Fed into
The bond market was aghast. Treasuries with longer maturities have sold off across the board since Powell spoke on Tuesday, and yields rose. The 10-year yield closed on Thursday at 1.67%, the highest all month, up 15 basis point from about 1.52% on Tuesday at the time Powell was speaking. This is not what the Crybabies on Wall Street had in mind.
Albertson’s Reveals Supermarket Meltdown as Global Deep
Coupons? What coupons? We don’t have them here. What we have are these loyalty programs where every A$1 you spend you get one point. Once you get 2000 points you get a whopping A$10 off your bill. They also run specials once in a while if you buy xyz or spend X$ a week for so many weeks you’ll get extra points.
Why Online Shoppers Face Peculiar Results on Black Friday
But for many categories of retail purchases, the business has wandered off to the internet. Online retail sales of goods in the US are now a $600-billion a year business. This is retail sales of goods only and does not include services such as airline tickets, hotel reservations, insurance products, and other services that use online pricing.
Fed’s Favorite Lowball Inflation Gauge is Red-Hot, Not
Coupons and looking for sales do both work, but require a lot of your time which you have valued at $0. I just go and buy what’s on sale. And buy enough of it to ride out until the next sale of it. Less effort required. Doesn’t work for fruits and veggies but I have a big freezer.
Central Bank Machinations with No Exit: ECB Leaks New
First the central banks will paint the inflation as welcome and a victory for their policies of promoting an inflation (2-2.5%) . Those rates rip 22-28% respectively off the dollar in ten years…(63-68% off in 20 yrs). Stable prices? Then, the central bankers will “limp in” with little 1/4pt behind the curve raises that will do little.
Panicked Fed Slashes Rates to Near 0%, Throws $700 Billion
The Sunday afternoon surprise announcement comes on top of the mother of all money-printing repo-market and Everything-Bubble surprise shock-and-awe bailouts that it had announced and kicked off on Thursday during afternoon trading hours: A series of $500-billion term repos at least through April 13, amounting to $4.0 trillion in new money over
The Weird Phenomena of “Labor Shortages” While 7.1 Million
The #1 weird phenomenon: The labor force. By Wolf Richter for WOLF STREET. Amid reports of hiring bonuses even for jobs at the lower end of the wage scale, and amid reports of companies raising wages to attract workers, and amid widespread complaints about “labor shortages” and difficulties in hiring people, and amid reports of supply chain issues because essential jobs cannot be filled
Leveraged-Loan Downgrades Spike, Collateralized Loan
“Sell first, ask questions later.” The $1.2-trillion US leveraged loan market is starting to get downgrade-indigestion. So far this year through October 11, of the 1,460 leveraged loans in the S&P/LSTA Index, 282 issues were downgraded, already exceeding the 244 downgrades for the entire year of 2018, and blowing past the 33 downgrades in 2017, according to LCD of S&P Global Market
Who’ll Rescue Thomas Cook, the Collapsing Vacation-Travel
Think of the synergies, they can even pay off the pensioners in Uber coupons for free rides. Em says: Sep 13, 2019 at 3:04 pm. And get in bed with air b-n-b instead of hotel chains. Brant Lee says: Sep 13, 2019 at 4:03 pm. You’ve got that right!! I wish I would have known about air b-n-b sooner.
Bond Market Smells a Rat: 10-Year Treasury Yield Hit 1.04%
Comparing pre- and post-COVID-19 funding requirements from coupons issued during the January to March 2020 quarter of $579 billion to the most recent quarter of August to October of $934 billion is over a 60% increase in coupon issuance. ==> I …
WOLF STREET “Pickup Truck & Car Price Index” for 2021
One was a 1995 Camry I paid $1500 for and drove for 5 years. The other was a 2002 Passat that I drove for the next 5 years. Repairs were minimal. I drove a lot more than the average driver, If we went on vacation to North Carolina from CT or something similar, we would rent a car for the week. With a coupon code, the cost was not much.
I, Who Vowed to Never-Ever Short Stocks Again, Just
The real question is the extent of the t bill purchases and if they are buying coupons at the fed. otishertz says: Dec 31, 2019 at 7:58 pm. Meaning little net impact during the time frame of the average repo, provided repo volume declines. This is going to be the blow off top of all time and is, ultimately, going to end with the downfall of
I’m in Awe of How Long Zombies Like J.C. Penney Keep
Investors are certain the company will be able to make it that far and pay off the note with cash it has on hand. It’s currently trading at 99 cents on the dollar: In 2007, J.C. Penney sold $700 million of 30-year unsecured bonds, with a coupon of 6.375%.
Retail Meltdown Demolishes Mall Investors Wolf Street
Regency Centers Corp (REG), with 429 shopping centers totaling 57.2 million square feet of retail space, focuses on “grocery-anchored retail centers located in the most attractive U.S. markets.”. Its shares fell 1.9% to $61.49 on Monday and 8% over the past month. They’re down 28% from the peak at the end of July:
My Long View of the “Yield-Curve Inversion” Wolf Street
Home buyers may put their down payment in a bond and use the interest to pay off the mortgage interest and probably collateralize the bond. (coupon clipping) I am really not worried about this, the problem is the massive tsunami on new government debt and a Congress fundamentally opposed to the expansion of government.
Fed Pays Banks $12 Billion on “Excess Reserves,” Taken
This pushed up the amount it pays to the banks, despite their lower excess reserves, from $6.9 billion in 2015 to $12 billion in 2016. The Fed says that it pays the banks for these excess reserves as a mechanism to get banks to raise their own lending rates when lending to each other, which, in theory, would contribute to raising market rates.
Boeing Crashes: $43 Billion in Share Buybacks Turn into
The Iranians didn’t shut off the oil, Carter did. I could go on and on about all the wrong things Trump has done in all this, from bad mouthing the Fed into all those stupid rate cuts, and his signature Corporate Tax Cut, the extra profits from which Corporate America used to do stock buybacks out the wazoo, buying at the top of the market
Macy’s Brick & Mortar Sales -35%, Digital +21%. Walmart
44% of Macy’s total sales are now ecommerce. Mall landlords, even the biggest, are turning malls over to their lenders. By Wolf Richter for WOLF STREET. Macy’s, when it reported earnings this morning, confirmed its own brick-and-mortar meltdown, and it showed the benefits of Macy’s decision years ago to go after ecommerce in a serious way, knowing that its brick-and-mortar stores
US Companies Stockpile the Profit “Overseas.” But where
I currently live in an area with a 10% sales tax. I don’t buy anything that is not on sale for at least 10% off. I am not the only one. When there is a sale at any big retailer the store is packed, otherwise they are empty. Avoiding the sales tax is a pass time, as is hunting for coupons to avoid it.
Restaurant Industry Suddenly Tanks, Worst Plunge since the
As for me – I use Ent book coupons and Groupon when they offer 20% off as restaurant food prices have really crept up in SF area in last couple of years except for family favorite Chinese and Japanese restaurants that offer excellent value (price/taste/portion) for lunches and early burd specials.
Shanghai Containerized Freight Index Collapses: China-US
Heck even the KTV and saunas vices biz were hawking for customers outside which is pretty rare with 50% off coupons for sauna happy hours (1 to 3 PM for relaxation to work off lunch and just in time to show your face in the office before leaving for another lavish dinner and KTV).
Surging Inflation No Problem, Junk Bond Yields Drop to
The market is broken. “Raging mania” rules. By Wolf Richter for WOLF STREET. In these wondrous credit markets were everything is now completely out of whack, the first thing that happened, after the freak show of CPI inflation hitting 5.0%, was that junk-bond yields fell to new record lows.Even the average yield of B-rated junk bonds – considered “highly speculative,” per my cheat
First US Economic Data of the COVID-19 Era Emerges. It’s
10:15 – 10:30 am: Treasury Coupons 0 to 2.25 year sector, for around $10 billion 11:00 – 11:15 am: Treasury Coupons 2.25 to 4.5 year sector, for around $8 billion 11:45 am – 12:00 pm: Treasury Coupons 4.5 to 7 year sector, for around $9 billion 12:30 – 12:45 pm: Treasury Coupons 7 to 20 year sector, for around $5 billion
What’s Behind the Fed’s Bailout of the Repo Market
The repo market is huge. According to the Securities Industry and Financial Markets Association SIFMA, the average daily repos and reverse repos outstanding in 2018 totaled nearly $4 trillion. Repos accounted for $2.2 trillion, reverse repos accounted for $1.7 trillion. The Fed is now playing in both, repos and reverse repos.
QE-4 Cut in Half this Week. Fed’s Helicopter Money for
Regular folks need not apply. By Wolf Richter for WOLF STREET. Total assets on the Fed’s weekly balance sheet jumped by $272 billion in one week, to $6.08 trillion, according to the Fed’s release Thursday afternoon. Since the Fed started this spree of Wall Street and asset-holder bailout programs four weeks ago, total assets have exploded by $1.77 trillion.
This is What Happens to Inflation when a Currency Gets
On November 11, the IMF stopped dragging its feet and ratified the $12-billion loan. At today’s rate of 17 pounds to the dollar, the currency has lost 48% of its value since November 3. This chart, showing the value of each pound in US cents, depicts that plunge in its horrific brutality: But Egypt imports about $60 billion per year in fuel
Trump Talked, the Fed Listened: Let’s Shrink the Balance
If it is a bond with “interest coupons”, then each bondholder will get the interest payment each month (or whatever agreed-upon cycle) by submitting such a coupon. This could be done electronically, and not with a paper coupon, of course, although at some point all interest coupons were a physical paper coupons and perhaps some still are).
Silicon Valley Commercial Property Boom Ends, Totally
Once my favorite micro-brews were duly recorded in The Cloud, then I could tell my Uber driver where to drop me off next, having examined my coupons. With such enormous ramifications it’s hard to believe the startups won’t find new money. Wolf Richter says: May 13, 2016 at 7:24 am.
Great Debt Unwind: Bankruptcies by Consumers and
For bankruptcy filings by businesses from large corporations to tiny sole proprietorships, the dance started in November 2015. At first it was the energy bust. But bankruptcies of energy companies have tapered off with new money surging into the oil & gas sector once again.
Banking Crisis in Europe
The Stoxx 600 Europe Banks index dropped to the lowest level since the gloomy days of the Eurozone debt crisis in 2012. At the time, Draghi’s whatever-it-takes pledge kicked off a bank rally. When it petered out, Draghi came up with negative deposit rates and QE, which in early 2015 kicked off another bank rally.
The US and the World: Wolf Richter on the Keiser Report
Welfare money – food stamps – coupons are the currencies of the nations of the Almighty New World Order. Welfare money – food stamps – coupons make up the lucrative profit margins of Corporate – US – UK – Australia – Germany – France – in fact – the whole of the Western business & banking conglomerate’s.