Author: Wolf Richter

How “NIRP Refugees” Try to Escape Financial Repression But End up in Riskiest Assets with Greatest Potential for Loss

NIRP refugees are conservative investors such as pension funds and insurance companies that manage everyone’s money. They need predictable returns from high-quality bonds for future payouts. But now their business model has collapsed under central banks’ negative-interest-rate policies. Here I am on Double...

Profits Plunge, Sales Drop at Macy’s. Slashes Jobs, Closes Stores. Stock Jumps 18%

Profits Plunge, Sales Drop at Macy’s. Slashes Jobs, Closes Stores. Stock Jumps 18%

Brick-and-mortar retail sinks artfully into coma. It’s been a tough quarter for Macy’s. Again. Sales dropped 4% to $5.87 billion in the second quarter, it reported today. It had already closed 41 “underperforming Macy’s stores” in its fiscal year 2015. So among...

When Will the Record Corporate “Debt Binge” Collapse?

When Will the Record Corporate “Debt Binge” Collapse?

“This year is unlike anything ever seen in the history of finance.” After a historic “debt binge,” leverage levels among the 2,200 largest US corporations, excluding financial institutions, have reached “record highs,” Standard and Poor’s warns. It blamed the Fed-fueled “excessive...

It’s Getting Uglier in Spain

It’s Getting Uglier in Spain

No government, no problem. By Don Quijones, With all the world’s attention focused on the slow-motion disintegration and belated — and possibly ill-fated– “rescue” of Italy’s financial system, other somewhat smaller but nonetheless important crises are going unnoticed in Europe’s...

Why this Job Market is Still Terrible: The Politically Incorrect Numbers Everyone is Hushing up

Why this Job Market is Still Terrible: The Politically Incorrect Numbers Everyone is Hushing up

For individuals, it has barely improved since the Great Recession. If you have a salary well into the six figures, stock options, nearly free healthcare, and other benefits such as access to free gourmet lunches and dinners at the company’s...