Markets, Regulators Ignore Ticking Time Bomb Of Shadow Margin Loans
Authored by Wolf Richter via WolfStreet.com,
Magnitude unknown but huge. Brokerages push it to new heights.
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Bank of America: "Tick Tock"
The drums of doom from BofA's Michael Hartnett (most notorious for his recent prediction of when "the Fed will crash the market", and warning that "The Most Dangerous Moment For Markets Will Come In 3 Or 4 Months") are beating louder, and in his latest Flow Show report titled "Tick Tock", he doubles down on his recent forecast that "positioning is becoming more consistent with autumn top in risk assets", but more importantly than just making a forecast, Hartnett lays out the key catalysts that would confirm an imminent market "crack": a dollar
We Need A Social Economy, Not A Hyper-Financialized Economy
Authored by Charles Hugh Smith via OfTwoMinds blog,
The key to broadly distributing opportunity and capital is to nurture the source of social capital: the community economy.
Oil & Gas Earnings Expectations Are Collapsing
Much of the recent ebulient narrative about equity markets has been based on the promise of an earnings rebound - due to beneficial comps in the oil & gas sector. That narrative just hit a wall...
As Bloomberg notes, analysts haven’t rushed to upgrade their outlook on earnings per share at Europe’s biggest energy companies, even as Royal Dutch Shell Plc, Total SA and Statoil ASA beat estimates for a second straight quarter.
"This Is A Full-Blown Scandal: It’s Unbelievable, Outrageous" - Comptroller Demands Heads Roll At Wells
Wells Fargo is in boiling hot water. Again.
One day after the NYT reported the latest major scandal involving Warren Buffett's favorite bank, in which the bank was busted less than a year after its miss-selling fraud cost the former CEO his job, revealing that the bank charged some 800,000 customers for auto insurance they did not need (with some still paying for it), the demands for resignation have arrived.