Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.
Wednesday, December 18, 2013
Could Volcker Rule Precipitate Next Financial Crisis? / Stock-Markets / Credit Crisis 2013
By: Pete_Grant
I am not certain how we should react out of the gate to the situation with Zions Bancorp. Utah’s largest banking group revealed that it will take a one-time $387 million post-tax charge, based on its interpretation of the Volcker rule. Essentially, Zions believes that the Volcker rule dictates that it can no longer hold CDOs of bank and insurer-issued trust preferred securities (TruPS).
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Thursday, October 31, 2013
How Can We Have Record Bad Loans And Record Excess Liquidity At The Same Time? / Stock-Markets / Credit Crisis 2013
By: Raul_I_Meijer
We can read these days that Spain has come out of its recession. The Bank of Spain reported last week that GDP expanded by 0.1% in Q3. But in a country with 26% unemployment and 55% youth unemployment, such statements are devoid of any real meaning. They're mere technicality niceties. Because if anything screams recession, it's those kinds of unemployment numbers. Moreover, where do you think that 0.1%, even it you would take it seriously, came from? It's really not that hard. Spain’s return to growth is due to a 15% fall in labour costs since the 2008 financial crisis. In other words: the rich side of the economy gets to look good at the expense of the poor side. A global phenomenon.
Friday, October 18, 2013
Structured Finance: Sovereign Debt, Banks, and Gold / Stock-Markets / Credit Crisis 2013
By: Janet_Tavakoli
The U.S never really minded if a Latin American oil minister took a kickback here or a bribe there to grease the wheels for a foreign oil company or an importer of hard liquor. Latin American taxpayers wouldn’t notice. The money was really just an upfront golden parachute. No U.S. executive ever went to jail just because he voted himself a huge separation bonus as a corporate raider took over a company. Shareholders didn’t complain. The only difference between an executive and a Latin American honcho was the executive got his money after he lost power. But the U.S. minded a lot after Alan Garcia won Peru’s presidential election in 1985. Garcia announced to the world that Peru couldn’t pay back its debt. Garcia was going to mess with U.S. banks, and that was definitely not okay.
Sunday, October 13, 2013
Repo Market Implosion Financial Collapse Nightmare Scenario / Stock-Markets / Credit Crisis 2013
By: Mike_Whitney
October 11, 2013 "Information Clearing House - President Barack Obama is determined to prevail in his battle with GOP congressional leaders on the debt ceiling issue, but not for the reasons stated in the media. Obama is less concerned with the prospect of higher interest rates and frustrated bondholders than he is with the big Wall Street banks who would be thrust back into crisis if there is no resolution before October 17. Absent a debt ceiling deal, the repurchase market–known as repo–would undergo another deep-freeze as it did in 2008 when Lehman Brothers defaulted triggering a run on the Reserve Primary Fund which had been exposed to Lehman’s short-term debt. The frenzied selloff sparked a widespread panic across global financial markets pushing the system to the brink of collapse and forcing the Federal Reserve to backstop regulated and unregulated financial institutions with more than $11 trillion in loans and other obligations. The same tragedy will play out again, if congress fails lift the ceiling and reinforce the present value of US debt.
Thursday, September 19, 2013
Financial Crisis Meltdown Five Years After / Stock-Markets / Credit Crisis 2013
By: BATR
So appropriate that the architect of banking deregulation, Larry Summers pleads that he is not the right person to head up the Federal Reserve. No S$%#. Well, the Fed is certainly the hot seat under normal circumstances. What will it be like when the next crisis directly puts into play the reserve currency status of the dollar? Do not worry, anniversaries are supposed to look at the brighter side. Never mind, our benevolent government is hard at work presenting the public with the kind of assurance that would make anyone start singing happy birthday.
Monday, September 16, 2013
Credit Crisis Five Years Past or Five More in the Making / Stock-Markets / Credit Crisis 2013
By: Nadia_Simmons
Wall Street is now reflecting upon the fifth anniversary of the Lehman Brothers bankruptcy and the start of the Credit Crisis. In fact, most are celebrating the belief that the complete collapse of the American economy was avoided thanks to a massive intervention of government-sponsored borrowing and money printing.
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Sunday, August 11, 2013
Effects of Malaysia Credit Squeeze on the Housing and Stock Market / Stock-Markets / Credit Crisis 2013
By: Sam_Chee_Kong
Malaysia’s current Household debt problem is not the result of our government’s recent policies to encourage private expenditure. In actuality the current debt problem has been accumulated from the past 15 years. The history of Malaysia’s Household debt can be traced back to 1997 where the household debt to GDP was only 39% then. This was also the year Malaysia is engulfed by the Asian Financial crisis.
Sunday, August 11, 2013
Banking and Financial Collapse - We Can’t Take the Chance / Stock-Markets / Credit Crisis 2013
By: John_Mauldin
What would it have been like to be in the decision-maker's seat at a central bank in the midst of the crisis in 2008-09? You'd know that you won't have the luxury of going back and making better decisions five years later. Instead, you have to act on the torrent of information that's coming at you from every quarter, and none of it is good. Major banks are literally collapsing, the interbank market is almost nonexistent, and there is panic in the air. Perhaps you feel that panic in the pit of your stomach. This week we'll perform a little thought experiment to see if we can extrapolate what is likely to happen in when the next crisis kicks in.
Thursday, July 18, 2013
Capital Requirements Won’t Save Us From Fundamentally Unstable Monetary System / Stock-Markets / Credit Crisis 2013
By: Frank_Shostak
On Tuesday July 2, 2013 US central bank policy makers voted in favor of the US version of the global bank rules known as the Basel 3 accord. The cornerstone of the new rules is a requirement that banks maintain high quality capital, such as stock or retained earnings, equal to 7 percent of their loans and assets.
The bigger banks may be required to hold more than 9 percent. The Fed also drafted new “leverage ratio” rules to limit how much banks can borrow to fund their business.
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Sunday, June 30, 2013
Bankster Bankruptcy Bail-Ins Are Retirement Accounts Next? / Stock-Markets / Credit Crisis 2013
By: Andy_Sutton
One of the biggest concerns of savvy investors since the ongoing crisis began in 2008 has been the safety and longevity of the various types of retirement accounts and systems. Throwing gasoline on the flames have been the decisions rendered by courts of ‘law’ regarding the treatment of customer money in the case of the bankruptcy of several brokerage firms, most notably, MFGlobal. The susceptibility of bank deposits has already been firmly established in prior issues of this column. To our alarm and dismay it appears, at least on the surface, as though few are doing anything to prepare for such an eventuality.
Tuesday, June 25, 2013
Warning China’s “Lehman” Moment Could Cause Another 2008 Financial Crisis / Stock-Markets / Credit Crisis 2013
By: Graham_Summers
The global Central Banks are in damage control mode.
The big story here is China, which is fast approaching its “Lehman” moment with interbank liquidity drying up rapidly and overnight rates are soaring.
As I’ve warned Private Wealth Advisory subscribers before, China’s shadow banking system equal to over $18 trillion (more than 200% of China’s GDP), so this could be the mother of all bubbles bursting.
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Sunday, June 23, 2013
Has the Great Financial Crisis Finally Arrived? / Stock-Markets / Credit Crisis 2013
By: Graham_Summers
The technical damage from yesterday’s bloodbath was severe.
Spain, which lead the “Europe is saved” party from the lows last year has just taken out its trendline. So much for the “crisis is over” proclamations. We’re heading back down in a big way.
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Thursday, June 13, 2013
Financial Crisis 2008 Style Can Absolutely Still Happen Again / Stock-Markets / Credit Crisis 2013
By: Bloomberg
John Thain, former chairman and CEO of Merrill Lynch and COO at Goldman Sachs, told Bloomberg Television's Erik Schatzker and Sara Eisen on "Market Makers" today that a crisis like the one in 2008 could "absolutely" happen again." Thain said, "If anything, too big to fail is a bigger problem because the biggest financial institutions are more concentrated today than they were. Dodd Frank did not solve too big to fail."
Saturday, June 08, 2013
How to Protect Your Cash in Times of Crisis / Stock-Markets / Credit Crisis 2013
By: Don_Miller
The large depositors at Cypriot banks are shouldering a heavy burden. You’ll recall what happened back in March when the Eurozone financial wizards forced average citizens to participate in what was called a “bail-in.” It seems downright unfair for depositors with more than 100,000 euros to suffer a levy on up to 60% of their deposits. That’s about $140,000, give or take, at current exchange rates. And if you’re a retiree, having the government swipe $84,000 from your $140,000 account just to bail out feckless bankers is a pretty big deal
Friday, May 10, 2013
The Most Predictable Financial Crisis in America's History / Stock-Markets / Credit Crisis 2013
By: Investment_U
Alexander Green writes: There’s a great tug-o-war going on in the stock market right now. And the stakes are huge. How it turns out will determine not only the future prosperity of the country but whether you have an opportunity to achieve your financial dreams.
Every investor has a stake in this contest. And the outcome will be critical: the difference between comfortably reaching your investment goals and spending your golden years counting nickels. So let me describe this dangerous game and suggest how you should play it… and why.
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Friday, May 10, 2013
Canada Prepares to Follow Cyprus Debt Crisis Bank Deposits Theft / Stock-Markets / Credit Crisis 2013
By: Casey_Research
By Jeff Thomas, International Man
An intriguing article titled "Canada Includes Depositor Haircut Bail-In Provision for Systemically Important Banks in 2013 Budget" was recently published in SD Bullion.
The somewhat lengthy title offers all the information necessary, but for those who – quite understandably – may not be able to accept that they have just watched Canada tumble down the Cypriot rabbit hole, here is a bit more detail from the approved budget itself:
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Wednesday, May 08, 2013
Russian Money Burnt by Cyprus Turns to Luxembourg Safe haven / Stock-Markets / Credit Crisis 2013
By: Pravda
The debt crisis in Europe has hit big business hard, and Russian business was no exception. Problems with Cypriot banks raised many questions about the appropriateness of keeping money in the Cypriot offshore. Some businessmen began to seriously consider Luxembourg as an economic partner.
Luxembourg will help Russian businesses
Luxembourg intends to serve as a platform for the Russian capital in Europe, Minister for Economy and Foreign Trade of Luxembourg, Etienne Schneider stated.
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Thursday, May 02, 2013
The Next Wall Street Mega-Scandal Has Arrived / Stock-Markets / Credit Crisis 2013
By: Money_Morning
Shah Gilani writes: Well, it looks like the major financial institutions can't learn a lesson. They're neck deep in yet another financial scandal of global proportions.
U.S. and international securities regulators investigating manipulation of LIBOR, the world's most important set of benchmark interest rates, have uncovered another price-rigging scheme, this one in the $379 trillion market for interest rate swaps.
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Tuesday, April 23, 2013
There is No Such Thing as a "Safe" Big Bank / Stock-Markets / Credit Crisis 2013
By: Money_Morning
Shah Gilani writes: Thank goodness we have the FDIC and the Federal Reserve and Congressmen and women.
Thank goodness they're willing to tap the captive citizenry for as much cash as they need to back the Fed and the FDIC to safeguard our big, beautiful banks from... themselves.
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Thursday, April 11, 2013
Why Bank Bail in and Bail out Wont Work. Case study Iceland and Greece / Stock-Markets / Credit Crisis 2013
By: Sam_Chee_Kong
As most of us can remember that Iceland was the first country that went down during the last Global Financial Crisis in 2008. During that time Iceland had done something remarkable and that is during the five years prior to the crisis, managed to transform its economy from a fishing industry to a mega hedge fund country. Many of its citizens left their traditional trade which is fishing to become fund managers and salesman. As a result Iceland’s banking assets (physical assets + Loans + Reserves + Investment securities) grown to more than 10x its GDP of $14 billion. With such high leverage, when the financial crisis struck it is unable to defend its economy and hence its house of cards collapsed.
The purpose of this article is a post-event analysis of the performance of the Icelandic economy that refuses a bailout as compared to Greece which went for a bailout with the injection of funds from Troika. To simplify matters, we shall coin the bail-in and bail-out as (BIBO) for short. Of course in the short term it helped stabilized the Greek economy for a while but we want to know to what extent it had transformed the Greek economy in the long run with the accompanying terms and conditions and austerity measures. In this article we shall compare the performance of both the economies of Iceland and Greece with the economic indicators or metrics below from the year 2002 to the present. We believed we have been fed with too much toxics by the mainstream medias which are also own by them that capitalized on the age old investment axiom of good-to-good.
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