Margin Debt Soars To New Record; Investor Net Worth Hits Record Low

The correlation between stock prices and margin debt continues to rise (to new records of exuberant "Fed's got our backs" hope) as NYSE member margin balances surge to new record highs. Relative to the NYSE Composite, this is the most &qu… [...]

The Biggest Disaster in SE Asia Waiting to Happen: Thailand’s Massive Real Estate Bubble

In 1997, the SE Asian Tigers all faced severe economic stresses, partially triggered by a primarily foreign capital-funded massive real estate bubble in Thailand. Today the EXACT same thing is happening as untempered foreign investment into Thailand’… [...]

6 Things To Ponder This Weekend

Submitted by Lance Roberts of STA Wealth Management, Is there a bubble in the financial markets?  This is probably been the most written about issue over the past two weeks.  However, as I stated in "Too Much Bubble Talk:" "Th… [...]

Why Has Nobody Gone To Jail For The Financial Crisis? Judge Rakoff Says: "Blame The Government"

By US District Judge Jed S. Rakoff (pdf) Why Have No High Level Executives Been Prosecuted In Connection With The Financial Crisis? Five years have passed since the onset of what is sometimes called the Great Recession. While the economy has slowly imp… [...]

"What Politicians Want Is A World Of Pure Beta And Zero Alpha"

The Levers from EpsilonTheory.com (article link) Mr. Incredible:  You mean you killed off real heroes so that you could *pretend* to be one? Syndrome:        Oh, I’m real. Real enough to defeat you! And I did it… [...]

What Will Happen To The US Credit Rating?

With short-term Treasury Bills starting to price in a missed payment possibility and USA CDS surging (though still low), the debt ceiling (and implicit chance of a technical default) is nigh. As we approach yet another debt ceiling showdown (especially… [...]

Frontrunning: September 30

Government Heads Toward Shutdown (WSJ), First U.S. Shutdown in 17 Years at Midnight Seen Probable (BBG), Congress in game of chicken (RTRS) Italian Premier Pursues Last-Ditch Rescue of Government (WSJ) Election risk rattles Italian government bonds (R… [...]

The Government Shutdown Looms: A Q&A On What Happens Next (And Who Stays At Home)

With a government’s October 1 shut down – temporary of course – now seemingly inevitable, and more importantly with the peak debt ceiling negotiations due in just about a week after which point the Treasury will run out of money, many wonder what comes… [...]

Tesla: Where Retail Investors Rushing in and Nest Eggs Cracking

By EconMattersIt seems every year there are a few momentum stocks defying logic, reality while bleeding all shorts getting in the way.  This year, Tesla Motor (Nasdaq: TSLA) is one such stock which hit $188.64 on Friday, Sept. 26.  … [...]

On This Day 15 Years Ago The LTCM Bailout Ushered In "Too Big To Fail"

While the commemoration of the 5 year anniversary of the start of the Great Financial Crisis is slowing but surely fading, another just as important anniversary is revealed when one goes back not 5 but 15 years into the past, specifically to September … [...]