Business

Having single-handedly hounded Home Capital Group - the company which we predicted in 2015 would be "ground zero" for any potential Canadian financial crisis, and has emerged as the Canada's equivalent to the infamous New Century which in 2007 presaged the upcoming global financial crisis - into near oblivion, noted chicken-farmer and short-seller, Marc Cohodes, over the weekend revealed the full details behind his latest short thesis: Canadian oil and gas service provider, Badger Daylighting.

Submitted by Mish Shedlock of MishTalk

In response to California Banker: Views from the Business Banker’s Chair I received a pair of emails from readers tuned into Virginia.

Livs in Virginia (LIV) writes …

Hi Mish

 

Richmond VA, where I live, is inundated with radio commercials to get rich quick by flipping houses. And I’ve seen articles in the paper about flippers. I, too, viewed this as being indicative of a top.

 

We’ve also seen a huge surge in new restaurants.

 

Another day, another warnings about China's fading credit impulse (see here in February, and Pimco most recently), and market complacency about what the recent monetary tightening and drop in commodity prices in Chinese markets means for global markets, this time from Citigroup.

Step aside Citi US Economic Surprise Index, which after a "surprising" streak of negative economic data, recently crashed to the lowest level since October 2016...

... and make way for Morgan Stanley's ARIA, a monthly US macro indicator based on data collected through primary research on key US sectors (consumer, autos, housing, employment, and business investment).

The U.S. economy is suffering from a major long-term problem: business investment is weak. Unless President Trump solves this problem, it will prove to be his Achilles’ heel.