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Whiff of Panic? Global Bear-Market Progress Report, by Wolf Richter

From Wolf Richter at wolfstreet.com:

Watch the banks.

For once, aggrieved investors can’t blame China. Markets in China are closed for the New Year’s holidays. 348 more words

Financial Markets

The Adjustment Cycle, by Doug Nolan

From Doug Nolan at creditbubblebulletin.blogspot.com:

Crude has rallied about 5% off of last month’s low. The Brazilian real closed Friday at 3.90, having posted a decent rally from the January closing low of 4.16 to the dollar. 324 more words

Financial Markets

Another Sign of Rough Sledding Ahead: Dividend Cuts Surpass 2008, by Luke Kawa

From Luke Kawa at bloomberg.com:

Tightening credit puts pressure on companies to scale back payouts.

In 2015, equity investors looking for yield suffered death by 394 cuts. 254 more words

Financial Markets

$100 Trillion Up in Smoke, by John Mauldin

The numbers are staggering; the destruction of wealth vast. This is how debt contractions work. From John Mauldin at mauldineconomics.com:

If energy powers the world, then whoever owns that energy must have power over the world. 408 more words

Economics

Shorting the yuan is dangerous, by Alasdair Macleod

The trading world is short the yuan, expecting a substantial devaluation of the yuan as the Chinese spend down their foreign exchange reserves. The financial press and blogosphere are filled with predictions of devaluation. 632 more words

Government

"Folly For The Ages": After Buying Back 63 Million Shares At $83, Hess Just Sold 25 Million Shares At $39, by Tyler Durden

By the way, Hess’s CEO, John B. Hess, has an undergraduate degree and an MBA from Harvard. From Tyler Durden at zerohedge.com:

Having long mocked the sheer idiocy of using organic cash or worse, debt proceeds, to fund buybacks just so management can eek out a few more million in equity-linked compensation while activists enjoy a few extra points in P&L on the back of naive bondholders managing ‘other people’s money’, we were delighted to see the buyback bubble begin to burst in the middle of 2015 starting with Michael Kors (as detailed in “When Stock Buybacks Go Horribly Wrong”) and Monsanto (“When Buybacks Fail…”), when each respective stock plunged far below the average buyback price. 279 more words

Financial Markets