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After Skyrocketing in Majestic Short Squeeze, GameStop Shares Collapse 54% in Hours: The Zoo Has Gone Nuts

Via Wolf Street What a show! Smallish traders, by colluding on Reddit, have fabulously succeeded in what famed big short-sellers have done for years in the opposite direction. Pump & dump for both. By Wolf Richter for WOLF STREET. When I say that “the zoo has gone nuts,” I mean, “literally,” as in scientifically proven and peer-reviewed. But...

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Historic Mania in SPACs, IPOs. Huge Fees for Wall Street Banks. Mega Paydays for Insiders. Disdain for Valuations. Blind Confidence that “This Time It’s Different”

Via Wolf Street Another sign the zoo has gone nuts. “If you don’t have your own SPAC, you’re nobody.” By Wolf Richter for WOLF STREET. The business of SPACs is setting stunning records. A SPAC (special-purpose acquisition company) is a “blank-check company” with no business activity that raises funds from investors via an IPO and will then attempt...

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Eurostar Near Collapse, Asks for Bailout, Becomes Hot Potato

Via Wolf Street Traffic down 95%. To run out of money by April. By Nick Corbishley, for WOLF STREET: Eurostar, the company that operates the cross-Channel train service that connects the UK with France, Belgium and the Netherlands, is on the brink of collapse, the company’s management warned this week. With passenger numbers down 95% in the...

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Inflation Is Spreading Broadly into the Economy. Amid Surging Costs, Companies Raise Prices, and Customers Pay them, Despite Weak Economy, 10 Million Missing Jobs

Via Wolf Street “Not only have the last two months seen supply shortages develop at a pace not previously seen in the survey’s history, but prices have also risen due to the imbalance of supply and demand.” By Wolf Richter for WOLF STREET. The signs of inflation building up in the economy are now everywhere. IHS Markit, in...

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Time to Worry About Stock Market Leverage Again: Another WTF Sign the Zoo Has Gone Nuts

Via Wolf Street In a world where valuations are irrelevant. By Wolf Richter for WOLF STREET. Margin debt – the amount of money that individuals and institutions borrow against their stock holdings – spiked by 56 billion in December, after having already spiked by 63 billion in November, by far the two largest month-to-month increases on record, to...

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Eviction Bans, Surging Apartment Vacancy Rates Trip up CMBS Backed by 43 Apartment Buildings

Via Wolf Street “Physical occupancy” rate (tenants living in the apartment) v. “economic occupancy” rate (tenants actually paying rent). By Wolf Richter for WOLF STREET. A $481-million loan that had been securitized into a Commercial Mortgage Backed Security (CMBS) in July 2019 by JPMorgan Chase and is backed by 43 apartment buildings with 8,671 apartment units in 25...

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Central Bank Machinations Getting Absurder and Absurder: ECB Leaks New Thingy, It’s Doing Yield Spread Control

Via Wolf Street This is not your grandmother’s “yield curve control.” By Wolf Richter for WOLF STREET. The ECB, which is already infamous for imposing negative interest rates, has been doing something new, something no other central bank has done before or even needed to do before. Sources familiar with the matter told Bloomberg that the ECB is...

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To Put it Succinctly about Services: Everything Drops, incl. Jobs, but Prices & Wages Rise

Via Wolf Street The service sector, including finance and insurance, in the New York Fed’s district, reports rising prices and wages, despite further deterioration in their business. Weirdest economy ever. By Wolf Richter for WOLF STREET. This is another moment in the Weirdest Economy Ever, driven by stimulus, forbearance, bailouts, record money printing, record government-deficit spending, exuberant financial...

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Techsodus & Unwind of Office Hogging Sink San Francisco Office Market. Sublease Vacancies Explode to All-Time High, Leasing Activity Freezes up, Rents Drop

Via Wolf Street From fake “office shortage” to historic glut in no time. By Wolf Richter for WOLF STREET. Oracle, after announcing in December that it would move its Corporate Headquarters from Redwood City in Silicon Valley to its campus in Austin, Texas, and after putting its 17-story office tower in San Jose up for sale, thereby becoming...

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Massive Inflation in Shipping Costs. And the Reasons

Via Wolf Street Rates for trucking, ocean containers, airfreight, parcels, you name it, the costs for shipping consumer & industrial goods are surging. By Wolf Richter for WOLF STREET. The dollar-amount spent by shippers, such as manufacturers or retailers, on shipping their goods jumped by 13% in December from a year earlier, driving the Cass Freight Index of...

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Where Americans Splurged, Where They Cut Back: Have “Seasonal Adjustments” to Retail Sales Gone Awry?

Via Wolf Street Third month in a row of declining retail sales, “seasonally adjusted.” But the curveball from ecommerce caused me to dig, and I share my doubts about “seasonal adjustments.” 15 whiplash charts of retail sales in the Weirdest Economy Ever. By Wolf Richter for WOLF STREET. Retail sales in December fell for the third month in...

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“Keeping a Business Alive that’s Generating No Revenues is an Uphill Struggle”: Friend and Hostel Owner in Barcelona. An Industry Collapses

Via Wolf Street Bankruptcies, glut of hotels for sale, few buyers, prices plunge. Nobu, de Niro, and Teper take big loss on sale of luxury hotel Nobu Barcelona that was open for only six months. By Nick Corbishley, for WOLF STREET: “Keeping a business alive that is generating no revenues is an uphill struggle,” Pol told me....

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Stunning Brick & Mortar Meltdown, Manhattan Style: The Collapse of Retail Rents Before & Now During the Pandemic  

Via Wolf Street Store rents had already plunged, amid a surge in vacancies. Then in the spring, the market froze; when it thawed, rents dropped to 10-year lows. By Wolf Richter for WOLF STREET. In the major shopping corridors in Manhattan, where sidewalks are lined by ground-floor shops, retail rents have been declining for years – and not...

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Electricity Has Been in a Slump for 14 Years, But All Heck Has Broken Loose in How it’s Generated

Via Wolf Street Electricity generating capacity additions & retirements in 2021, and the long-term change in the power mix. By Wolf Richter for WOLF STREET. In 2021, developers and power plant owners plan to bring 39.7 gigawatts (GW) of new electricity generating capacity on line, and retire 9.1 GW in generating capacity, for a net increase in capacity...