Most of these are interest rate and credit derivatives. As we learned in the last two years, the big risk here is to institutions which owe and own these obligations amongst one another. In our view, the degree of interconnectedness among these obligations (they still aren’t unwound) still makes the entire global financial system vulnerable…
March 10th, 2010 | Dan Denning | 14 comments | ContinuedAll Posts Tagged With: "banking system"
Chinese Government Trying to Put Brakes on Economy
To understand what’s taking place in China today, we need to rewind the clock about a decade. At that time the Chinese government chose a policy of growth at any cost.
March 2nd, 2010 | Vitaliy N. Katsenelson | 10 comments | Continued
It All Comes Down to Debt Again for NAB
NAB came by the bonds because it accepted them as collateral for what it described as an “interbank reverse repurchase agreement.” Got that? From what we can gather, NAB may be obligated to take on certain loan obligations of its bank partner “under certain circumstances.”
December 22nd, 2009 | Dan Denning | 2 comments | Continued
Optimists Expect Mild Inflation in a Decent Recovery
Pessimists fear the feds may have waited too long; they think they see higher rates of inflation coming. Here on the back page we see no recovery…nor any inflation.
December 7th, 2009 | Bill Bonner | 3 comments | Continued
The Single Best Trade for 2010
What was the single, most damaging trade of 2009? There are a number of candidates: short stocks, short gold and long the dollar would all be in the running.
December 4th, 2009 | Steve Belmont | 0 comments | Continued
Gold Price Should Continue Going Up as the Dollar Accelerates its Terminal Decline
But first, just a reminder about the gold conference in Canberra November 2nd through 5th in Canberra. You can read about it here. Space is limited, so if you’re keen to go, you’d better move fast. Your editor will be there too, for the first time, and is looking forward to a world-class line up of speakers on gold as money and gold investments.
October 2nd, 2009 | Dan Denning | 6 comments | Continued
Jim Grant Declares Boom is Nigh
What is remarkable about the Grant conversion is that his vision gives off so little heat and light. His WSJ article shillyshallies around; rehearses the history of previous recessions…
September 28th, 2009 | Bill Bonner | 0 comments | Continued
Seems Everyone is Speculating on the Banks
“Public assistance enables the world’s largest 15 financial firms to return to the capitalization they had in September 2008,” the article continues. The largest of the largest, HSBC, is now judged to be worth $186 billion, according to the stock market.
September 2nd, 2009 | Bill Bonner | 2 comments | Continued
Nixon and Exchanging Dollars for Gold
Then Nixon said, “No more exchanging stupid paper dollars for real gold!” The reason Nixon was forced to act like a lying, thieving little creep is partly because he WAS a lying, thieving little creep, but mostly because he mirrored America perfectly since Congress allowed it…
August 4th, 2009 | Mogambo Guru | 5 comments | Continued
Bank Stress Test Not Stressful Enough
Forecasting loan losses at banks is inherently speculative. Forecasting future cash flow from existing loans is also speculative. Both estimates lie at the core of this week’s leaked (and eventually announced) stress test.
May 13th, 2009 | Dan Amoss | 0 comments | Continued
Bunch of Turkeys
A bunch of turkeys have hijacked our monetary system and all they know is how to print money. Rather than let the market clear itself out, central banks continue to use taxpayers’ money to bail out insolvent institutions. This brilliant strategy has NEVER worked in the past and it will not work this time around. Instead of robbing innocent people of their savings, the establishment must allow the weak banks to go bust…
February 26th, 2009 | Puru Saxena | 3 comments | Continued
Give Liquidation a Chance!
If our hotline rings and Mr. Obama is on the phone, we know what advice we will give: Let the banks fail. Let them go broke. Let them be liquidated. Then, the surviving banks could buy up the decent assets and emerge stronger than ever…
February 26th, 2009 | Bill Bonner | 3 comments | Continued
Obama’s Bailout: Too Little, Too Late?
The combination of falling earnings and falling P/Es does to stock prices approximately what the Romans did to Carthage in the third Punic War. That’s why we have our Crash Alert flag flying. Stock prices delenda est. Typically, depressions come with bear markets. And bear markets come with bounces and rallies. We expected an O! Bama! bounce after the election. We got one…but much less than we expected. Stocks only rallied about 15%…
February 19th, 2009 | Bill Bonner | 0 comments | Continued
Bankers Pull Another Fast One
Everybody wants to kick the bankers when they are on the ground. Heck, we’d do it too…but the crowd around them is so thick; we can’t get a boot in edgewise. Besides, there are bigger charlatans still standing. After all, bankers were just doing their jobs – separating fools from their money. What about those who were supposed to be protecting the fools?…
February 16th, 2009 | Bill Bonner | 5 comments | Continued
Tips from an Obama Insider on the Next Two Years
Now that Obama has officially dropped the “elect” from his title, what can we expect from his administration…and what does it mean for the country? Byron King passes along some rather grim predictions from an “Obama insider”, and gives us some advice on how to deal with the coming fallout…
January 23rd, 2009 | Byron King | 0 comments | Continued
