Wolf Richter www.wolfstreet.com
Another retailer is heading for bankruptcy. This time Aeropostale, with 800 teen-clothing stores, after three years in a row of losses. It’s “preparing to reorganize under a Chapter 11 bankruptcy, and could file as soon as this month, according to people familiar with the matter,” Bloomberg reported today.
After warning last year of a "practically unavoidable" hard-landing to come in China, George Soros unleashed his central-planner-crushing self last night on the great red ponzi. As we noted last night, Soros warned the "parabolic" rise in credit is very worrisome, and "eerily reminiscent of US in 2007-8," specifically adding that "most of the money that banks are supplying is needed to keep bad debts and loss-making enterprises alive." Soros' full discussion can be found below...
Submitted by Simon Black via SovereignMan.com,
I’ll start with a confession.
Based on the returns I’ve just prepared for 2015, my tax bill for the year amounts to exactly $0.00.
In fact, for the second year in a row, I legitimately owe zero tax. And I’m damn proud of that.
(And no, it’s not from any illegal tricks. I’ll explain how I did it later.)
Not a shred of my efforts goes to help finance bombs, wars, debt, and utterly useless waste.
For those who believe that broad-based stimulus is coming to save the world from China (via RRR cuts or even pure QE) - as opposed to the hole-filling credit pump they just supported - think again. As we warned last year, this is 'western' thinking as the go to policy of the rest of the world's central banks has been - put on pants, print money, paper over cracks, proclaim victory. However, in China there is one big problem with this... stoking inflation...
Submitted by Thad Beversdorf via FirstRebuttal.com,
When people stop trusting a market they stop using that market. Trust is at near 20 year lows. The conundrum is that as volumes decline it becomes ever easier for price insensitive participants to manipulate the market only furthering the distrust. This first three charts depict the deterioration of volumes and capital outflows in the face of a ‘7 year bull’. A hard to explain phenomenon.
Raw Price to Monthly Volume:
And the capital outflows….