Feb 08

Dot Com 2.0 — The Sequel Unfolds

“Like a phoenix rising from the ashes of the post Dot-Com ruins people were told not only was it “different this time,” they were also instructed to observe even the phoenix bird itself had morphed into what is now commonly referred to as a “Unicorn.” And any comparisons to the prior meltdown in the land of Dot-Com were met with howls and scowls of, “You just don’t get it!” or worse.

Feb 08

Wall St. in selloff mode as techs extend rout, oil falls

“Wall Street was deep in the red in volatile trading on Monday, as technology stocks continued to sell off and oil prices remained under pressure, sending investors scurrying to safe-haven assets.” — You mean like gold? Oh yes, that which cannot be named in polite company is up by over 2% so far, meaning its performance relative to stocks on the day is approximately +4%.

Feb 08

Why a selloff in European banks is ominous

“There is more to the sector slump than just the individual bank problems, according to Garnry. The negative interest rates set by the ECB means that banks effectively have to pay to have cash on their balance sheets, while at the same time getting squeezed on their net interest margins. Debt levels are already really high on the continent, which means further loan growth is expected to be low, he said.” — See also Deutsche Bank is shaking to its foundations — is a new banking crisis around the corner?

Feb 08

Janet Yellen is finding herself increasingly fenced in


The problem is that the labor market seems to be tightening — despite a comedown in the pace of U.S. economic growth as well as slowing corporate earnings growth. The labor tightness is resulting from falling productivity, fewer qualified applicants and the still-low percentage of Americans in the labor force. Wage inflation is also on the rise.

Taken together, all of this feels a little “stagflation-y” because it suggests the economy could get the job and wage gains we’ve been waiting for, but in a way that’s bad for the stock market and the overall economy. If that dynamic deepens, Yellen will have no easy policy prescriptions…

Feb 08

China’s looming debt crisis is no cause for alarm, says PBOC expert

“Joe Zhang says while some analysts cite China’s credit-to-GDP ratio as the main reason for an impending disaster, a number of economies with high ratios have defied the doomsday forecasts for decades.” — SCMP is heavily PRC-biased (if not controlled); but here’s the “opposing view” of China-debt-doomsaying, for what it’s worth…