This Economic Indicator Says to Tread Carefully

By Joel Litman

Editor's note: Today, we're breaking from our usual fare to cover one critical reason why it's time to be selective as an investor. In this piece, Joel Litman – founder of our corporate affiliate Altimetry – highlights an indicator you should be watching right now... And he reveals why it means many industries are already vulnerable.

The outlook isn't great for a lot of industries right now...

This week, the Institute for Supply Management ("ISM") announced its Purchasing Managers' Index ("PMI") rating for April. The index measures how strong manufacturing activity is in the U.S.

A PMI rating below 50 indicates economic activity is shrinking. April's rating was 47.1... And while that was better than expectations, it marked the fifth consecutive month of contraction.

Mastercard Launches Crypto Credential Service for Cross-Border Transfers

The set of verification standards uses technology from CipherTrace, the well-known blockchain analytics platform Mastercard agreed to acquire in late 2021.

By Ian Allison

AUSTIN, Texas — The executive in charge of crypto products and blockchain at Mastercard (MA) said the payment processing company is bringing out a service designed to ensure transactions between users’ wallets are verifiable and compliant, beginning with transfers of digital assets between countries.

In this first cross-border use case, the Mastercard Crypto Credential service, announced Friday by Raj Dhamodharan from the stage at Consensus 2023, allows wallets to be identified in transactions that are compliant with requirements such as the Financial Action Task Force's (FATF) "travel rule."

First Republic Bank, Without the $30 Billion in “Rescue” Funds, Lost $102 Billion in Deposits in One Quarter or 58 Percent

By Pam Martens and Russ Martens: April 24, 2023

Give First Republic Bank an A+ for arrogance and an F for its ability to hold on to its customers’ deposits, despite all that incessant talk about how loyal they are.

The A+ for arrogance comes from the bank’s refusal to take even one question from reporters or bank analysts on today’s first quarter earnings call. The call began at 4:30 p.m. ET and lasted approximately 12 minutes. It was heavy on spin.

For example, a big effort was made to dress up the amount of deposits the bank still had on hand at the end of the first quarter, which is necessary if anyone is to believe the narrative that it has “retained 97 percent of client relationships” over the quarter. (The relationships may, indeed, still be there in some fashion but deposits have flown the coop.)

Second PE-Firm-Owned Subprime Auto Dealer & Lender Suddenly Shuts Down after its Subprime Auto-Loan Bonds Make a Huge Mess

“Net losses and gross charge-offs were understated” – Oopsie?

By Wolf Richter for WOLF STREET.

U.S. Auto Sales, a dealer chain owned by a private equity firm and focused on selling and financing lower-end older used vehicles to subprime-rated customers, suddenly “temporarily” shut its 39 dealerships in six southern states today, with a terse announcement on its website:

Attention U.S. Auto Customers. We have temporarily closed our dealerships and are working on a solution to re-open them as soon as possible. But don’t worry, we aren’t going anywhere! U.S. Auto’s affiliated loan servicing company (USASF Servicing LLC) is still open to accept your payments and assist in servicing your account. Please continue to make your payments as scheduled and reach out to us with any account questions.

Sincerely, -The U.S. Auto Team

Ukraine War Causes Inflation & Higher Rates – Martin Armstrong

By Greg Hunter’s USAWatchdog.com (Saturday Night Post)

Legendary financial and geopolitical cycle analyst Martin Armstrong was forecasting “chaos” in 2023. The Ukraine war is ramping up. China looks like it’s getting ready to invade Taiwan. President Trump was indicted by radical Deep State Democrats. The FDIC had to rescue some big banks and stop an economic implosion, and it’s just the first few weeks of spring. Don’t look for things to get better. Armstrong explains, “Bidens approval rating is collapsing. “Socrates” (Armstrong’s predictive computer program) has it now at 9.5%. . . .What they are going to do is try to start war before the election, and that’s what this is all about. Their theory is no president that has ever been engaged in a war has ever lost an election. You don’t change horses in midstream. So, they intend to actually start war.”

America’s Power Play: Unlocking Mother Nature’s Metal

An invisible chain shackles America.

It’s an obstruction that leaves it vulnerable and dependent on foreign powers.

Contrary to what you might think, no, it’s not copper, oil, or natural gas. It’s the lifeblood of our clean energy and electric vehicle future.

But fear not, for America is poised to break free from these bonds and seize control of its mineral destiny.

Mother Nature’s Metal – Lithium

In this age of uncertainty, lithium is poised to become one of the most valuable and sought-after resources on the planet, driving a revolution that could redefine the way we live, work, and interact with the world around us.

This isn’t some wild speculation or far-off fantasy – it’s a reality that’s unfolding as we speak.

In fact, the lithium revolution has already begun, and those who recognize its potential now stand to reap the rewards in the years to come.