Business

With one foot out of the door of Germany's finance ministry, the former head of the German economy, Wolfgang Schäuble, 75, delivered a fire and brimstone warning over the weekend, telling the FT in an interview that there was a danger of "new bubbles" forming due to the trillions of dollars that central banks have pumped into markets. Schäuble also warned of risks to stability in the eurozone, particularly those posed by bank balance sheets burdened by the post-crisis legacy of non-performing loans, something we warned about since 2012, and an issue which remains largely unresolved.

Authored by Lance Roberts via RealInvestmentAdvice.com,

Melt-Up Gains Traction

Back in November, just following the election of President Trump, I wrote about the market entering into potentially the final “melt-up” phase of the cyclical bull market.

How do you know stocks are a little overextended? A good indicator is when even the most bullish sellside analyst on Wall Street, Morgan Stanley's Michael Wilson, whose year-end price target of 2,700 is the highest of all his peers, warns that stocks may see "pullback or consolidation" and that the coming earnings season may be a "sell the news event."

Authored by Tom Sanzillo via ValueWalk.com,

President Trump, who knows a thing or two about bankruptcy, says Puerto Rico’s public debt should be wiped out. We agree.

The commonwealth owes bondholders somewhere on the order of $70 billion, with most of that debt tied to general-obligation bonds, revenue bonds and bonds issued by the Puerto Rico Electric Power Authority (PREPA).

Last week, the US Treasury Department issued its second of four reports related to President Trump’s Executive Order 13772 (on regulation in alignment with the Core Principles). The first report was on Banking, this report is on the Capital Markets, and other reports will follow over the coming months (including on asset management, insurance, products, vehicles, non-bank financial institutions, financial technology, financial innovation, and others).