2023-09-15 What Is Lars Thinking ("WILT")

Submitted by Lars.Toomre on Fri, 09/15/2023 - 18:00

Various people have requested that Brass Rat Capital share more about what this FinTech "skunkworks" does these days professionally, especially in light of what some say is an eclectic collection of books that Lars periodically shares. After some discussions this past week, it has been agreed that each day both here on the Brass Rat Capital website and Lars Toomre's personal website, there will be at least one posting of a Lars Semantic Concept Definitions ("LSCD").

2023-09-11 What Is Lars Thinking ("WILT")

Submitted by Lars.Toomre on Mon, 09/11/2023 - 03:00

Twenty-two years ago today, the American capital markets basically shut down for a week. No one was allowed to fly. Remember the heroic efforts find office space away from downtown NYC and to get the New York Stock Exchange and bond markets functioning again? Odd thought, maybe one should just do little to nothing for the next month?

There are building pressures that will make the path forward for the economy and capital markets more than a little rough. Volatility will return big time.

2023-09-07 What Is Lars Thinking ("WILT)

Submitted by Lars.Toomre on Thu, 09/07/2023 - 07:00

NVDIA (Stock Symbol: NVDA) closed on Wednesday 2023-09-06 at $470.61 per share. This is a marker. Lars Toomre meant to post yesterday that the share price close on Tuesday was $484.48.

Nonetheless, thirty days from now and likely 60 days from now, the NVDA stock price will be lower. The valuation is stretched as are the nifty seven in the NASDAQ. However, now there are also questions now about the true demand for NVDA Graphical Processor Unit ("GPU") and NVDA's business practices. More to come...

2023-09-04 What Is Lars Thinking ("WILT")

Submitted by Lars.Toomre on Mon, 09/04/2023 - 07:00

Welcome to one of the last days before the proverbial "shit storm" hits both Main Street and Wall Street. Lars Toomre's sense in the next thirty days is what many will feel that the proverbial economic train has flipped off the tracks as suggested by the image below.

There are a series of issues that are all likely to come to a head around the first of October. The UAW may well be out on strike against perhaps all three of the Big Three traditional automakers. There certainly appears to be no compromise ahead of a September 14th strike date.

2023-08-25 What Is Lars Thinking ("WILT")

Submitted by Lars.Toomre on Fri, 08/25/2023 - 07:00

Good morning on Jackson Hole Day! This image is from the last 2019 Jackson Hole Economic Symposium Lars Toomre attended in person... Lars will not be present this year at the 2023 Economic Symposium due to some personal issues. However, Lars has the unsettled feeling that this again is a Central Bank meeting occurring ahead of a major economic storm.

2023-08-22 What Is Lars Thinking ("WILT")

Submitted by Lars.Toomre on Tue, 08/22/2023 - 09:00

Lars Toomre is simply amazed by today's capital markets, particularly the American fixed-income markets. There is considerable talk about "buying duration" because real yields are now around two percent in the longer-duration sectors. As a member of the 1980s "Bond Vigilante" traders community, Lars simply replies when asked, "Are you nuts?"

2023-05-03 What Is Lars Thinking ("WILT")

Submitted by Lars.Toomre on Wed, 05/03/2023 - 14:00

The first two days in May have been spent in San Diego at the 2023 American Bankers Payments Forum. Hence, Lars was on the West Coast among commercial bankers the two days after the failure of First Republic, a west-coast-focused bank, that primarily failed due to its loan book of self-originated mortgages.

Jamie Diamond said yesterday that the banking crisis is largely over. There is absolutely no f**kin' way that statement is true. We are in the midst of a credit crisis largely caused by unrealized losses in the commercial banking sector.

2023-03-20 What Is Lars Thinking ("WILT")

Submitted by Lars.Toomre on Mon, 03/20/2023 - 13:00

The American population is finally awakening to the steep losses various institutions have suffered in the last year. We have seen bank runs that have quickly finished off three regional banks. We have seen the Swiss virtually force the demise of Credit Suisse into UBS (thereby keeping the Americans and British from unearthing and further revealing some of the dark secrets of the Swiss banking system).

2023-03-12 What Is Lars Thinking ("WILT")

Submitted by Lars.Toomre on Sun, 03/12/2023 - 19:00

The wheels have come off the American banking system due to the failure of Silicon Valley Bank. This is more significant than the bankruptcy of Lehman Brothers back in 2008.

Lars has previously worried about how liquidity was disappearing from various corners of the global Capital Markets (see 2022-12-07 WILT). This weekend it is the smaller banks being discussed and closely examined. Just wait a few days and weeks for the market discussions to turn to the smaller pension funds that reached for yield in 2018-2022!!

2022-12-28 What Lars Is Thinking (“WILT”)

Submitted by Lars.Toomre on Wed, 12/28/2022 - 18:00

Lars Toomre now is virtually certain the American economy is tipping over into a deep recession. The key to how deep the 2023 recession will be has always been the mighty American consumer. Will the broad American population continue to spend in face of the COVID outbreak in the Far East, the steep rise in the US Treasury yield curve, the 2023-2024 European energy crisis in Europe, and …??