Firesale

Firesale

The sudden firesale of real estate loans is perhaps the surest sign that the stars are aligning for a historic real estate crash, which Darren Winters flagged back in July 2022.   “The last shoe to fall could be a real estate crash, which now seems highly likely as the Fed tightening continues into a recession,” …

Systemic Crisis

Systemic Crisis

A systemic crisis in the debt market festers as the Fed’s pitiful fight against inflation, which has not even raised the Fed fund rates above the pampered core inflation rate, threatens to collapse the house of cards bond market, taking banks with it. US annual core inflation, the data that strips out everything relevant, like …

Bank Runs

Bank Runs

It is game over for central bank inflation hawks; there have been two bank runs in the US in as many days, and policymakers have been working overtime, weekend to prevent a systemic financial meltdown. So let’s get to the bones of why Silicon Valley Bank, the 16th largest commercial US bank in Santa Clara, …