Creditors

"2017 Will Be A Tipping Point" - Why Some Think This Is The Next "Big Short"

"These malls are dying, and we see very limited prospect of a turnaround in performance" according to a January report from Alder Hill, which began shorting the securities. "We expect 2017 to be a tipping point." Indeed, cracks have appeared: prices on the BBB- pool of CMBS have tumbled from 96 cents on the dollar in late January to 87 cents last week

The US Government Now Has Less Cash Than Google

"Our modern 'experts' tell us that the US government will always pay and that a debt default is impossible. Well, we’re living in a world where the 'impossible' keeps happening."

This Is The Only Chart Americans Should Be Worrying About Right Now

While the stock market (and VIX) signal utter calm, signs of stress are very clear in America's money markets. With Treasury's cash balance plunging to just $108bn this week as the debt ceiling deadline looms, newly ensconced Treasury Secretary Steven Mnuchin will be forced to order “emergency measures” to effectively buy more time for the government to pay its creditors and cover revenue shortfalls to keep the government operating.

The "Sinister" Side Of Central Bank-Issued Digital Currency

Central banks and international financial institutions represent? - ?and work for? - ?creditors first and people second. That is why they can be serially wrong with so little direct consequence. This is the backdrop against which we are invited to trust the banking system with central bank-issued digital currency.

Number Of Distressed US Retailers Highest Since The Great Recession

"Moody's-rated US retailers rated Caa or Ca today make up just over 13% of our total rated retail portfolio, which is the highest level since the Great Recession.  As they struggle to survive, distressed retailers can take more desperate measures, including highly promotional pricing that can border on irrational.  This leaves stronger firms with the choice of either competing in a race to the bottom, or giving up sales in order to preserve margin."

When Was America's Peak Wealth?

"...was America at its richest right before or right after Nixon took the country off the gold standard in 1971?"

Frontrunning: February 23

  • Trump to Brainstorm on Job Policies With Corporate CEOs (BBG)
  • Border-Adjustment Tax Divides Energy Sector (WSJ)
  • French Bonds Rally After Macron Boosts Presidential Campaign (BBG)
  • Boeing Fighter Jet, Feared Dead, Gets New Life From Trump Tweets (BBG)
  • Treasury Secretary Steven Mnuchin Sees Tax Overhaul by August (WSJ)
  • Why Mexico Is Trump’s First Line of Defense on Immigration (BBG)

Ten Great Economic Myths

Our country is beset by a large number of economic myths that distort public thinking on important problems and lead us to accept unsound and dangerous government policies. Here are ten of the most dangerous of these myths and an analysis of what is wrong with them.

European Rally Fizzles, S&P Futures Turn Red As USDJPY Slides, Bunds Strongly Bid

What started off in familiar fashion, with Asian stocks rising, and Europe hitting multi-month highs and US futures in record territory has stumbled in recent minutes following a continued rush for safety in short-dated German Bunds (the 2Y is now trading at -0.92%) and ongoing selling in the USDJPY, which has pushed Stoxx 600 back to unchanged, and S&P futures to modestly red for the session.

Greek Bonds Rally On Revived Bailout Hopes

The yield on Greece's bonds have tumbled the most since June after creditors agreed on Monday to resume talks in Athens over steps needed to continue a bailout of the nation, driving expectations that Greece will be able to meet its deadline for debt redemption by July.