Category Archives: Economics

Escape from New York

NYC commercial real estate on increasingly shaky ground? Well, as Kathy Wylde (Partnership for New York City) told Bloomberg: “All the banks, insurance companies, and hedge funds are considering options.” NYC office space available for rent are now at levels not seen since 2003. Where is everyone going? Florida for starters. Just like Goldman. AsContinue reading “Escape from New York”

Bill Blain on Bonker Markets

“It’s been truly extraordinary. DoorDash, a food delivery company that’s never made a penny profit is worth $70bln? It exists in a no-barriers-to-entry, highly price competitive, and ultimate risk sector – where if Micky D makes a bad burger they get the blame. It’s also a concept that’s shifting on the value curve. Money ain’tContinue reading “Bill Blain on Bonker Markets”

Oligarchy – so easily sold, so easily bought

Orwell in 1984: “If you want a picture of the future, imagine a boot stamping on a human face – for ever”. It could be a Chinese Communist Party official. Or, a corporation serving their Chinese Communist Party business associates. Or, a corporation engaging a Chinese Communist Party enterprise. All the same. https://www.theepochtimes.com/facebook-fact-checker-funded-by-chinese-money-through-tiktok_3610009.html?utm_source=share-btn-copylink

Lies, Damn Lies, and Statistics

Maybe Chinese exporters are overstating their exports, in general and to the United States. Overstating exports is a classic way of getting capital into a country with capital controls. Or, maybe US tariffs have created a strong incentive for firms importing into the United States to go to some lengths to understate their imports from China. Thus, U.S.Continue reading “Lies, Damn Lies, and Statistics”

Hostile Power – the source of US fentanyl addictions adds narco-terrorist money laundering to their portfolio

“Routing cartel drug profits from the United States to China then on to Mexico with a few clicks of a burner phone and Chinese banking apps – and without the bulky cash ever crossing borders. The launderers pay small Chinese-owned businesses in the United States and Mexico to help them move the funds. Most contact withContinue reading “Hostile Power – the source of US fentanyl addictions adds narco-terrorist money laundering to their portfolio”

Canary in the Mine: Car Wreck Portends November Retail Crash

November dive followed by a return to the rolling-over trend. Christophe Barraud: confirms my view that, at best, 4Q GDP growth will slow dramatically compared to 3Q while another GDP contraction still looks possible at this stage. The fact is the rapid spread of Covid-19 will force more states to implement restrictive measures before quarter-end.Continue reading “Canary in the Mine: Car Wreck Portends November Retail Crash”

John Tuld: “If you’re first out the door, that’s not called panicking.”

“Margin Call” is a 2011 film that follows the key people at an investment bank, over a 24-hour period, during the early stages of the financial crisis. Written and directed by J.C. Chandor, we learn from the firm’s CEO, “John Tuld” (played by Jeremy Irons) that successfully running a banking business can come down toContinue reading “John Tuld: “If you’re first out the door, that’s not called panicking.””

Zombie Apocalypse

With interest rates at subatomic levels, “zombie” companies continue to defy the laws of physics. As discussed in ZH below, “it started in December 2017, when the IMF published a blog discussing the “Walking Debt: China’s Zombies” (a topic we first covered in October 2015 in “More Than Half Of China’s Commodity Companies Can’t PayContinue reading “Zombie Apocalypse”

While Household Income Falls, Central Bankers Are Pushing for Higher Prices | Daniel Lacalle

“We have not crashed yet, let’s accelerate.” Central banks continue to be obsessed with inflation even as household income and balance sheets continue to weaken in real terms. Source: While Household Income Falls, Central Bankers Are Pushing for Higher Prices | Daniel Lacalle