The Fed is in deep fear, while also in deep denial, about what happened last December. Its fear is that it could happen again this December. Its denial is that its lax supervision of the Wall Street mega banks is largely responsible for the mess. The stock market news on December 24 of last year […]
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As the Fed Throws Hundreds of Billions a Week at Wall Street Banks for Liquidity, JPMorgan’s IIF Can Afford to Buy El Paso Electric…
David Dayen of American Prospect has a must-read article. The headline and subhead read: “JPMorgan Gets Back Into the Electricity Business: An El Paso, Texas, electric utility is being purchased by an investment fund with deep, undisclosed ties to the big bank.” Dayen is not buying into the idea that it’s an investment fund at […]
“It’s Incredible. The Scale of What JPMorgan Is Doing Is Mind-Boggling”…
Shortly after our latest discussion how JPM’s drain of liquidity via Money Markets and reserves parked at the Fed may have prompted the September repo crisis and subsequent launch of “Not QE” by the Fed in order to reduce its at risk capital and potentially lower its G-SIB charge – currently the highest of all […]
‘Blowout Numbers’ as Black Unemployment Reaches Record Low, Beating Forecasts…
The Bureau of Labor Statistics (BLS) on Friday released its monthly Employment Situation Report (pdf), which showed continued employment growth and near record unemployment rates in October. Employment gains among African-American women and Latinos were particularly impressive. The unemployment rate for African Americans reached a record low of 5.4 percent—a fall of 2.6 percent since […]
China Says It’s Reached a Consensus in Principle with the U.S. During This Week’s Trade Talks…
China said Friday that it has reached a consensus with the U.S. in principle after a phone call among high-level trade negotiators this week. The Chinese Ministry of Commerce said Vice Premier Liu He had a phone call with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Friday. It said the two […]
Stupendously Splendid Jobs Report – October Jobs +128,000, Aug/Sept Revisions +95,000, Wage Growth +3.0%…
Jumpin’ ju-ju bones, the October jobs report has blown away all expectations in every possible metric. It’s not just the top-line job gains, the two month revisions are huge. The Bureau of Labor Statistics (BLS) report for October shows 128,000 job gains; and that number includes absorption for negative impacts due to -20,000 census workers […]
DoJ Strikes Deal to Recover $1 Billion from Mysterious Fugitive Mastermind Behind 1MDB Fraud…
The U.S. Justice Department has struck a deal with fugitive financier Jho Low – the mysterious financier who allegedly masterminded the theft of more than $4 billion from Malaysia’s 1MDB development fund – to recoup almost a billion dollars from Malaysian investment fund 1MDB – “I am very pleased” that a global settlement has been […]
What in the World Is the Federal Reserve Thinking???…
You don’t use up all of your ammunition before the battle even begins. The U.S. economy has not even officially entered recession territory yet, although many experts are definitely anticipating one in 2020. When that recession arrives, the Federal Reserve is going to want as much ammunition to fight it as possible. So I was […]
New York Fed’s Repo Loans Are Foaming the Hedge Fund Runways…
There is growing evidence that the New York Fed, the Wall Street feeding tube team of the Federal Reserve Board of Governors, is using its massive new repo loan operations to securities firms (primary dealers) to foam the Wall Street runways to try to avoid a crash landing as money gushes out of hedge funds […]
China’s IP Theft Remains a Thorny Issue in Trade Talks…
Whether the United States and China will sign the first part of a trade deal at the APEC meetings in Chile isn’t yet certain, and one obstacle in the ongoing talks is China’s stance on intellectual property. This is one of the most problematic issues in the trade talks, as Beijing wouldn’t “move the needle” […]
‘A Government of the Millionaires, by the Millionaires, for the Millionaires…
Way back in 1863 Abraham Lincoln gave his famed ‘Gettysburg Address’. In it he described ‘a government of the people, by the people, for the people’. Great words. But words are all they were. Fast forward 250 years or so and those famous words have now mutated into ‘government of the millionaires, by the millionaires, […]
Krugman Admits He and Mainstream Economists Got Globalization Wrong…Ya Think?…
Paul Krugman, Nobel-prize winning economist and avowed champion of free trade, admits he and his colleagues got a few things seriously wrong about globalization, in particular around its downside impact on local labor markets. “We missed a crucial part of the story,” Krugman wrote in a Bloomberg article in October, referring to members of the […]
The Fed Fears an Explosion on Wall Street: Here’s How JPMorgan Lit the Fuse…
JPMorgan Chase is the largest bank in the United States with $1.6 trillion in deposits from more than 5,000 retail bank branches spread across the country. When it withdraws liquidity from the U.S. financial system, that has a reverberating impact. According to the filings that JPMorgan Chase makes annually with the Securities and Exchange Commission […]
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UAW-GM Strike Ends, Union Turns to Ford…
The longest nationwide strike against General Motors Co. in nearly 50 years ended Friday, when a majority of members ratified a new four-year deal with General Motors Co. and the union turned its attention to Ford Motor Co. The week-long vote ends a 40-day strike that cost members thousands of dollars each, GM as much […]
‘Millennial Millionaires’ Banking on $68 Trillion “Great Wealth Transfer” from Parents…
A new report published by Coldwell Banker Real Estate LLC and Coldwell Banker Global Luxury details how “The Great Wealth Transfer” of the 2020s has already begun, which is a period when baby boomer wealth is transferred to their millennial offspring. The report titled “A Look at Wealth 2019: Millennial Millionaires,” notes how the already […]
Nancy Pelosi ‘fiddles while the USMCA is in the deep freeze’…
The U.S-Mexico-Canada Agreement is ready to go, but the Trump administration blames one person for holding it back: House Speaker Nancy Pelosi. “She fiddles while the USMCA is in the deep freeze,” White House trade adviser Peter Navarro told FOX Business’ “Mornings with Maria” on Thursday. “The false narrative here is this whole issue about […]
Meet The Lender That Turned the U.S. Farming Industry Into a Vortex of Defaults and Lawsuits…
BMO Harris is leaving a trail of defaults and lawsuits in the agriculture industry after being one of its most aggressive and prominent lenders in the 2010’s, according to Reuters. Ohio corn and soybean producer Greg Kruger experienced the investment bank’s lending practices firsthand. He had asked the bank for a $2 million loan to […]
Peter Navarro Discusses Structure of USMCA to Create North American Manufacturing Base…
White House Trade and Manufacturing Advisor Peter Navarro appears on Fox Business to discuss the purpose and intent of the USMCA and the ongoing China trade discussions. What Navarro skims upon is the heart of the economic purpose behind the USMCA as requested by President Trump and constructed by USTR Lighthizer. The USMCA establishes an […]
WeWork’s Unraveling Is Another Indictment of Wall Street’s Universal Bank Model…
WeWork is just one more in a long series of Wall Street scandals that prove that the universal banking model is little more than a thinly-disguised wealth transfer system from the pockets of average Americans to the 1 percent. Just two months ago WeWork’s two lead Wall Street underwriters, JPMorgan Chase and Goldman Sachs, were […]
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The Brexit Deal, The EU, and the North American Trade Aspect…
Trying to find the details within the U.K-EU Brexit deal is more difficult than finding evidence of a Yeti. The negotiating team secrecy is inherent to the way the elites within the European systems work. Essentially the “betters” rule the proles by hiding the details and relying upon the electorate to “trust” the outlined framework […]