tyb's
Yellen Blames "Enormous Debt And Buybacks" For Coming Default Wave; Morgan Stanley Says It's All The Fed's Fault
In June 2017, Janet Yellen decided to wave a red flag before the bulls of fate, and responding to a question on financial system stability, the then-Fed chair said post-crisis regulations had made financial institutions much "safer and sounder", and as a result she went on to predict that there would never again be a financial crisis "in our lifetimes" to wit:
"Will I say there will never, ever be another financial crisis? No, probably that would be going too far. But I do think we’re much safer and I hope that it will not be in our lifetimes and I don’t believe it will."
While the bulls cheered this idiotic prediction, some were quick to compare this statement by Yellen to Neville Chamberlain's infamous - and very, very wrong - "peace in our time" speech. In retrospect the some were right because less than three years later, the world is going through the biggest financial crisis in every living person's lifetime, which has resulted in the most aggressive central bank market stabilization and intervention in history. Also in retrospect, it is clear that Yellen didn't have any bloody idea what she was talking about (then, or any other time when she was boring traders and analysts to death with her droning, narcoleptic monotone) even as we - among others- were warning that it was her monetary policy decisions that guaranteed the next crisis would put 2008 to shame. And sure enough, while the current crisis was sparked by the coronavirus pandemic, it is what comes next that the financial crisis will truly strike home as thousands of companies that loaded up on cheap, cheap debt during the Bernanke, Yellen and Powell Feds, default.
Amazingly, it was again this same intellectual and otherwise midget, that last week had the audacity to deflect blame for the current crisis (which she said would never happen in her lifetime) when last Monday, Yellen said that choices by broad swaths of the financial industry and companies were going to make it harder for the economy to recover from the coronavirus crisis. Choices, which apparently, took place in a vacuum in which the Fed did not keep interest rates at the lowest level in history while blowing the biggest asset bubble ever. Or at least that's how the recent past looks like through Yellen's revisionist perspective.
Commenting on Yellen's video broadcast hosted by the Brookings Institution, the WSJ wrote that while the banking and financial sector was in “generally in good shape” ahead of the crisis, problems were already taking shape according to Yellen, who three years failed to predict the future with her patently idiotic "no crisis in our lifetimes", and now also appears unable to accurately discuss the past, where she just happened to be a key catalyst for the epic crash that is coming. Blaming everyone but herself, Yellen said that "non-financial corporations entered this crisis with enormous debt loads, and that is a vulnerability. They had borrowed excessively” and they did it not so much for productive purposes like investment, but for buying back stocks and paying dividends to shareholders. And while these firms borrowed, investors also let their guards down in their hunt for high yields, the former central bank official said, shocking oblivious of the Fed's role in permitting all of this behavior to continue for years and years, building up massive imbalances which are now finally being unleashed and forcing the Fed to do absolutely everything in its power to prevent true price discovery which would take place… about 60% below current S&P levels.
This blameless narrative continued, with Yellen having the gall to go so far as saying that the corporate borrowing binge - which she helped unleash - “creates risk to the economy. And I’m afraid we’ll see that in spades in the coming months, because it may trigger a wave of corporate defaults. Even where a company avoids default, highly indebted firms usually cut back a lot on investment and hiring, and that will make the recovery more difficult,” the former central banker said, once again hoping to never be named in the list of antagonists whose actions led to the biggest US depression in a century.
rest at link
https://www.zerohedge.com/markets/yellen-blames-enormous-debt-and-buybacks-coming-default-wave-morgan-stanley-says-its-all
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VVLL857 00000000 LLVV817 P-8 Poseiden Update out of NAS JAX
Cap#4 is VVLL857 trace over and around Robins AFB
LOBO474 C-560 from MCAS Cherry Pt nws and VENUS40 G5 from JBA nw
Zoom shares slip over security concerns, rising competition
Shares of Zoom fell 6% on Monday, adding to their sharp declines in the past few days, as the video conferencing app battles privacy concerns and increased competition from deep-pocketed rivals. The stock had surged to a record high in March as demand for the app skyrocketed with millions of people around the world using it for everything from school lessons to business meetings amid lockdowns imposed to slow the spread of the coronavirus.
But multiple reports last week that questioned the company’s data privacy practices have spooked investors, erasing over a third of the company’s market value from its record high.
Brokerage Credit Suisse downgraded Zoom Video Communications Inc’s stock to “underperform” from “neutral”. Analysts, on average, rate the stock “hold,” according to Refinitiv data. “While implied new customer growth may seem undemanding compared to recently disclosed 20x participant growth, we expect much of the recent surge will prove ephemeral, and/or comes from free users or education, which are very difficult to monetize,” Credit Suisse analysts wrote in a note.
Last week, at least two U.S. state attorneys had sought information from Zoom following multiple reports that questioned its privacy and security. Some school districts in the U.S. have started to ban the app for online learning from home because of growing security concerns, while the New York City Department of Education said teachers should instead work through Microsoft Teams, Washington Post reported on Saturday.
Reuters also reported last week that Elon Musk’s rocket company SpaceX had banned its employees from using Zoom, citing “significant privacy and security concerns.” The company’s daily users ballooned to more than 200 million in March from a previous maximum total of 10 million, Chief Executive Officer Eric Yuan said last week.
Microsoft’s Teams, which competes with Zoom, had 44 million users globally as of March 18, Microsoft said last month, more than double the 20 million daily active users it reported in November.
https://www.reuters.com/article/us-zoom-video-commn-stocks/zoom-shares-slip-over-security-concerns-rising-competition-idUSKBN21O1MJ
CMO
https://www.finviz.com/insidertrading.ashx?oc=1773299&tc=7
CEO
https://www.finviz.com/insidertrading.ashx?oc=1773298&tc=7
fuck off prude. You began this bullshit.
Blame it all on others but not YOUR projection of being offended.
that is the most logical explanation. Very few people who last that long look as good as that at 94.
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P-8's are done in the Gulf of Mexico-heading back to NAS JAX
PAT621 C-560 east from Buckley AFB after ground stop-started at JB Lewis-McChord earlier