Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. In this column, JWR also covers hedges, derivatives, and various obscura. Most of these items are from JWR’s “tangibles heavy” contrarian perspective. Today, we look at the commercial real estate market. (See the Tangibles Investing section.)
Precious Metals:
Fitch: Platinum And Palladium: High Risk Of Future Supply Disruption.
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At Kitco.com: Gold prices treading water around $2,000 an ounce as U.S. GPD grows 1.1% in Q1.
Economy & Finance:
First Republic Bank continues to crumble: First Republic advisers have lined up potential purchasers of bank’s new stock – CNBC.
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This piece from Fortune was linked over at the Whatfinger.com news aggregation site: First Republic Bank lost more than $72 billion in deposits during the first quarter—and plans to lay off up to 25% of its workforce.
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And CBS reports: First Republic shares continue their free fall amid mounting worries.
JWR’s Comments: In early February, First Republic stock was selling at around $147 per share. Yesterday morning (Thursday, April 27), the shares were at $5.81. That’s a massive and probably unrecoverable drop. There are dozens of smaller banks — with similar levels of capitalization — standing by as the next possible dominoes. These banks are continuing to lose deposits. Their shareholders must be feeling nervous. As I’ve mentioned before, the banking crisis was caused by the Federal Reserve keeping interest rates too low for too long. Years too long. This crisis is far from being over.
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David Stockman on Why Decades of Inflationary Finance Are Finally Coming Home to Roost.
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Jobless Claims Hover Near 17-Month Highs, Flash Recession Signal.
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US Discusses Ending Trade with Russia as Economic Sanctions Fail to Halt Aggression in Ukraine.