Category: Credit Crisis 2016
The analysis published under this category are as follows.
Saturday, December 24, 2016
The Italian Banking Crisis: No Free Lunch -- or Is There? / Interest-Rates / Credit Crisis 2016
By: Ellen_Brown
On December 4, 2016, Italian voters rejected a referendum to amend their constitution to give the government more power, and the Italian prime minister resigned. The resulting chaos has pushed Italy's already-troubled banks into bankruptcy. First on the chopping block is the 500 year old Banca Monte dei Paschi di Siena SpA (BMP), the oldest surviving bank in the world and the third largest bank in Italy. The concern is that its loss could trigger the collapse of other banks and even of the eurozone itself.
Thursday, November 17, 2016
What Happens When The Banks Aren't Safe? / Stock-Markets / Credit Crisis 2016
By: ....
What Happens When The
Banks Aren't Safe?
I call it the 'Ice Nine Plan'...
And if I'm right, it could give the financial elite total and absolute control over you and every single penny you own during the next financial crisis.
Thursday, October 06, 2016
China Might Be Deutsche Bank’s Last Hope / Companies / Credit Crisis 2016
By: John_Mauldin
By Olivier Garret: The pressure has been mounting on Deutsche Bank (DB), with the German government spurning the possibility of a bailout and the stock slumping. DB recently hit a record low.The German titan has been trying to sell assets to raise money to pay the US Department of Justice its record US$14 billion fine. And there have been rumors that Berlin is applying pressure to get the huge fine reduced.
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Wednesday, September 28, 2016
Will Deutsche Bank’s Collapse Be Worse Than Lehman Brothers? / Companies / Credit Crisis 2016
By: Graham_Summers
Few analysts noted it, but the $USD actually staged its second strongest day of the year the Friday before last.
The only other day in which the $USD rallied more was on the day of BREXIT, a black swan event that featured EXTREME currency volatility.
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Monday, September 26, 2016
What Blows Up First, Deutsche Bank? / Companies / Credit Crisis 2016
By: John_Rubino
Calling Wall Street’s banks stupid and dangerous is like calling the sun “big and warm.” It’s a clear understatement of an obvious fact. The same goes for calling Japan and China economically clueless. Their actions pretty much guarantee that they’ll ultimately enter some sort of death spiral.
Thursday, September 22, 2016
The Implications of the Italian Banking Crisis Could Be Disastrous / Stock-Markets / Credit Crisis 2016
By: John_Mauldin
BY GEORGE FRIEDMAN : The current Italian banking crisis carries with it the possibility of bank failures. The consequences of these failures pyramid the crisis because of European Union regulations. Essentially, the position of the European Union is that the European Central Bank (ECB) and the central banks of member countries cannot bail out failing banks by recapitalizing them—in other words, injecting money to keep them solvent.
EU regulations go so far as to prohibit Italy from using its state funds to shield investors and shareholders of banks from losses, unless there is risk of “very extraordinary” systemic stress. Rather, the EU has adopted a bail-in strategy.
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Wednesday, September 21, 2016
Ignore the Fed, Something MASSIVE is Brewing in Europe’s Banks / Companies / Credit Crisis 2016
By: Graham_Summers
The Bank of Japan failed to announce any new policy initiatives today. The reasons are financial and political.
From a financial perspective, the Bank of Japan is well aware that its current tools cannot and will not generate sustained GDP growth. Bank of Japan head Haruhiko Kuroda implicitly admitted back in January that regardless of what he does, Japan has “potential growth rate of 0.5% or lower.”
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Wednesday, August 17, 2016
The Lurking Disaster Germany and Saudi Arabia Have in Common / Stock-Markets / Credit Crisis 2016
By: John_Mauldin
The global exporters’ crisis is intensifying (read my free special report on Germany’s inevitable crisis).
Germany’s largest bank said it is deeply concerned about stagnation in the United States. Separately, Saudi Arabia’s central bank gave $4 billion to the country’s banks to help them deal with liquidity issues.
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Wednesday, August 03, 2016
European Banking System on Verge of Collapse; 'No Confidence' in Italian Bank Rescue / Companies / Credit Crisis 2016
By: Mike_Shedlock
European bank shares are down for the second day following a last minute bailout package aimed at Italian banks one day before a stress test showed Monte dei Paschi would be insolvent in an adverse scenario.
The ECB's stress tests published on Friday showed Monte dei Paschi has a huge capital shortfall, with the bank's Common Equity Tier 1 (CET1) ratio of negative 2.44 percent.
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Sunday, July 10, 2016
2007 All Over Again, Part 5: Banking Crisis Imminent / Stock-Markets / Credit Crisis 2016
By: John_Rubino
Our good friend Michael Pollaro just sent a chart from the St. Louis Fed that shows the US drifting back into yet another banking crisis.
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Saturday, July 09, 2016
Deutsche Bank or Dumb Bank? / Companies / Credit Crisis 2016
By: Chris_Vermeulen
Deutsche bank (DBK) shares dropped to fresh new lows with the various news announcements, as well as a feeling that Germany will not be capable of bailing out the bank. The imminent outcome for DBK is ‘bankruptcy’ while the world will have to bear the brunt of the fallout from all of the complicated ‘derivatives’ which are being held by Deutsche Bank.
DBKs’ outstanding ‘derivatives’ exposure is 20x the German GDP and 5x the Eurozone GDP.
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Thursday, July 07, 2016
Europe In Chaos - Can You Imagine The Fed Raising Interest Rates In This World? / Interest-Rates / Credit Crisis 2016
By: John_Rubino
Two short months ago it was generally expected that US interest rates would rise for the balance of the year — a move made possible by steady economic growth and general global stability. Here’s a representative piece of reporting from early April:
Friday, July 01, 2016
Italian Banks & Moving The Risk During Crisis / Companies / Credit Crisis 2016
By: Dan_Amerman
Europe is changing by the hour and the day at this point. In this analysis, I'm going to take a quick look at critical events that have happened in Italy in the last day or so, and how they relate to my recent Video Guide To Bail-Ins series. I will be using three current Bloomberg articles that came out in the space of about 7 hours as references.
Italy did a bail-in of four banks at the end of 2015, which inflicted bail-in losses on many individual savers, using the process explained in Video #2 of the series, "Comparison Of Bail-Outs vs Bail-Ins For Banks", linked below.
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Sunday, May 29, 2016
“Debt, Not The Economy, Reaches Escape Velocity” With Graham Mehl / Interest-Rates / Credit Crisis 2016
By: Andy_Sutton
One of the biggest buzz-terms of the falsetto, faux recovery has been ‘escape velocity’. If there are any NASA engineers left, they can correct me, but I believe the term was used in physics or perhaps rocket science to describe the velocity an object must reach to break the hold of the Earth’s gravity. And you think Economics has some formulas? I’d LOVE to see the one for the real escape velocity.
Getting back to the economic version of rocket science (don’t even tell me that isn’t funny), we have been hearing the term for the past several years. Ironically it started with the central banking crowdlthough they never quite told us what exactly the economy had to do to accelerate beyond the grasp of the ‘great recession’.
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Thursday, May 26, 2016
Cash Holdings of Apple and Other Tech High Fliers Are A Massive Risk in This Debt Jubilee Era / Interest-Rates / Credit Crisis 2016
By: Jeff_Berwick
Throw every “norm” out the window. This Keynesian, central banking world has everything so distorted that nothing makes sense anymore.
There are currently more than $7 trillion in bonds, worldwide, offering a negative interest rate. Wrap your head around that! People are actually paying trillions of dollars to give their money to mostly bankrupt governments with the promise they will receive less at a later date.
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Thursday, May 19, 2016
Bank Bail-Ins Pose Risks To Retail Depositors / Interest-Rates / Credit Crisis 2016
By: GoldCore
Bank bail-ins pose risks to retail investors and especially savers throughout the western world. The new bail-in rules have been made operational since the beginning of this year in the EU and in many other countries yet the risks and ramifications of bail ins have been largely ignored in most of the media.
Tuesday, May 03, 2016
Derivatives Crisis Of Banks…Worldwide / Companies / Credit Crisis 2016
By: I_M_Vronsky
Derivatives are weapons of mass destruction” – Warren Buffett
The WHAT AND WHY Of Derivatives
"Megabanks trade risk via derivatives contracts to another firm while keeping the underlying asset on their books. This way they can bypass capital requirements and take on more debt. This, in turn, allows them to make more trades, but it also means that if a sudden downturn surfaces in the markets, the firm which borrowed way beyond their means may quickly go bankrupt. Lehman Brothers experienced this after they’d borrowed 30 times more money than they had in reserve. In that case, a relatively small loss of a mere 3% meant that Lehman no longer had reserves (i.e. capital), and they therefore collapsed…i.e. totally wiped out. The leverage that derivatives allow is incomprehensible. They are betting 30 TIMES MORE MONEY THAN THEY HAVE. This is financially insane." (Source: http://www.huffingtonpost.ca/nick-fillmore/banks-derivatives_b_4408856.html )
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Thursday, April 14, 2016
Why We’re About to See the Largest Wealth Drought in Modern History / Stock-Markets / Credit Crisis 2016
By: Harry_Dent
If there’s anything the Chinese have going for them, it’s savings. Only a handful of countries have a higher savings rate than they do. For a still relatively poor emerging country with GDP per capita about a fifth of that in the U.S., the Chinese get an A+ in this area.But if diversification and asset allocation are the key to preserving wealth, then the Chinese get an F!
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Wednesday, April 13, 2016
Janet Yellen Meets With Obama In Emergency Meetings As Crises Erupt Worldwide / Interest-Rates / Credit Crisis 2016
By: Jeff_Berwick
The Credit Suisse Fear Barometer just hit an all-time high as reports circulated through the alternative media that Barack Obama discussed the imposition of martial law when he and Vice President Joe Biden met with Yellen on Monday in an “emergency meeting.”
The reports may be exaggerated but not the crisis-like feel of the meetings. This was reportedly a first: having the president and VP meeting directly with the Fed head. Does it have something to do with the “survival of the government” at a time when the US banking system may be facing a general default? According to some reports: “Members of the House and Senate are said to have been ‘up all night’ in discussions and meetings; with floods of phone calls back and forth. ”
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Monday, April 11, 2016
Bank Bail-Ins In EU as Heta "Bailed In" In Austria / Stock-Markets / Credit Crisis 2016
By: GoldCore
Bank bail-ins in the EU are here after Austria’s financial markets regulator FMA imposed a hefty haircut on creditors in an Austrian bank. Creditors in the bank Heta Asset Resolution will receive less than half of their money back according to the country’s financial regulator, the FMA.
Senior bondholders in the so called “bad bank” could expect to receive around €0.46 for each euro which would be paid from the realisation of assets by 2020, according to the FMA statement. It said that this had been calculated using “very conservative” assumptions.
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