It’s Like Ford, GM, FCA Got Run Over by a Tesla on Autopilot

By Wolf Richter for WOLF STREET.

Ford today gave another signal in a series of signals – it’s planning to cut production of its F-150 Lightning by half in 2024 to just 1,600 trucks a week – that proves the point: Two years ago, Ford, GM, and FCA (owned by Stellantis) were 10 years behind Tesla. Today, they’re 14 years behind, and they’re in the process of throwing in the towel. Every executive from the CEO on down three levels should be fired on the spot. I’m furious. I have been waiting for years for the legacy automakers to put the heat on Tesla to knock it off its high horse.

But no. Instead of focusing on designing competitive EVs – cost-competitive EVs – and to build the supply chains needed to produce them, GM announced $10 billion in share buybacks two weeks ago, and Ford $5 billion in share buybacks, to kowtow to Wall Street and keep their shares from plunging further. The CEOs should be fired on the spot, or did I already say that?

A Move That Will Spark This Sector's Rally in 2024

By Chris Igou

The feds are getting in the way of one sector's rise...

Their actions have been hurting these companies for years. And with their thumb pressing down on a key figure, the feds have a big impact on what comes next in this sector.

I'm not talking about police oversight or the FBI knocking on doors. I mean the other Feds... the ones that determine the world's most important figure in finance...

They monitor how easily and cheaply companies can grow their business. For almost two years, they've made it more difficult across the board. But that's all likely to change starting next year.

The Halving Could Send Bitcoin’s Price Surging 4,200%

By Michael Gross

We’re six months away from a rare phenomenon in crypto. In fact, it’s only happened three times over the past 15 years.

It’s called the “halving.” And if history is any guide, it will ignite the price of bitcoin.

If you have yet to prepare for this event, today’s essay is for you.

That’s because a clear and predictable pattern has played out prior to each halving.

If you’re aware of this pattern, you can potentially maximize your returns as the next bull market in bitcoin kicks off.

Failure to do so could mean missing out on a 4,200% price surge that bitcoin has averaged in the two years following its past halvings.

Today, I’ll go over what the halving event is… the pattern that emerges before each one… and how you can take advantage of it.

A Sneak Peak of Mega Bull Markets in a Forgotten Sector

Rare earth elements (REEs) are set to become the epicenter of a high-stakes global market.

This is a market where 1000%-2000% gains come and go faster than the hottest crypto token of the day.

These elements are not just materials; they’re the backbone of world-class magnets, far beyond the simple fridge adornments.

From sleek smartphones to robust wind turbines, REEs are the secret sauce in cutting-edge tech.

They’re not just components; they’re catalysts of innovation, making modern gadgets faster, smaller, and more efficient.

These magnets are the lifeblood of contemporary technology.

In wind turbines and electric vehicles, the role of REEs is pivotal.

Their magnetic properties are transforming wind energy with direct-drive turbines and driving electric vehicles with unparalleled torque and precision.

Each electric vehicle requires about 1 kilogram of neodymium-praseodymium oxide,

While a single wind turbine needs over 200 kilograms.

In a market that China has had a stranglehold on for decades, breaking into the market is no easy task.

Understanding REE Supply: The Chinese Dominance

Bitcoin derivatives traders target $40K BTC price now that Binance is resolved

By Marcel Pechman

BTC futures and options held firm despite a wave of negative news, and data shows traders targeting $40,000.

The cryptocurrency market recently experienced events that were previously expected to present a severe negative price impact, and yet, Bitcoin (BTC) traded near $37,000 on Nov. 22 — essentially flat from three days prior.

Such performance was utterly unexpected given the relevance of Binance’s plea deal on Nov. 21 with the United States government for violating laws involving money laundering and terror financing.

Bearish news has had limited impact on Bitcoin price

One might argue that entities have been manipulating Bitcoin’s price to avoid contagion, possibly involving the issuing of unbacked stablecoins — especially those with direct ties to the exchanges suffering from regulatory pressure. Thus, to identify whether investors became highly risk-averse, one should analyze Bitcoin derivatives instead of focusing solely on the current price levels.

The U.S. government filed indictments against Binance and co-founder Changpeng “CZ” Zhao in Washington state on Nov. 14, but the documents were unsealed on Nov. 21. After admitting the offenses, CZ stepped away from Binance management as part of the deal. Penalties totaled over $4 billion, including fines imposed on CZ personally. The news triggered a mere $50 million in BTC leveraged long futures contracts after Bitcoin’s price momentarily traded down to $35,600.

Could it Be the Fed’s Mega-QE Created so Much Liquidity that Tightening Doesn’t Work until this Excess Gets Burned Up?

By Wolf Richter for WOLF STREET.

One of the big surprises this year is that the Fed’s 5.5% policy rates and $1.1 trillion in QT have neither meaningfully tightened financial conditions nor slowed the economy.

The Fed has been “tightening” since early 2022 in order to “tighten” the financial conditions, and these tighter financial conditions are then supposed to make it harder and more expensive to borrow which is supposed to slow economic growth and remove the fuel that drives inflation. “Financial conditions,” which are tracked by various indices, got a little less loose, and then they re-loosened all over again. It’s almost funny.

The Chicago Fed’s National Financial Conditions Index (NFCI) loosened further, dipping to -0.36 in the latest reporting week, the loosest since May 2022, when the Fed just started its tightening cycle. The index is constructed to have an average value of zero going back to 1971. Negative values show that financial conditions are looser than average, and they have been loosening since April 2023, after a brief tightening episode during the bank panic (chart via Chicago Fed):