Central banks — of which the Federal Reserve is, by far, the most powerful — serve banks first and foremost. Secondly, they serve their host governments.
March 30th, 2013 | The Daily Reckoning+ | 4 comments | ContinuedAll Posts Tagged With: "banks"
Why You Shouldn’t Fall in Love With Beautiful Bank Yields
Before you rush out and buy the world’s most expensive bank, the Commonwealth Bank of Australia, have a think about the following stats from yesterday’s half-yearly profit release.
February 14th, 2013 | Greg Canavan+ | 2 comments | Continued
The Game of Banks, Debt and Money
We received a message from a reader confused about the discussion we had earlier in the week about money and how banks create it. Here’s our response to it…
February 14th, 2013 | Greg Canavan+ | 0 comments | Continued
Money, the Discredited Credit
The world is confusing capital with money. Money is the problem, not capital. Too much money makes capital less productive. It can’t settle down and get to work. It takes flight and constantly looks for shelter instead of generating wealth.
February 11th, 2013 | Greg Canavan+ | 1 comment | Continued
The Nobel Prize for Quack Economists Like Stiglitz
Economist Joseph Stiglitz says ‘Inequality is holding back the recovery’. What do we know from that? Only inequality is not holding back a recovery. Inequality is what you get when the Feds manipulate, manage, and mangle an economy.
January 24th, 2013 | Bill Bonner+ | 1 comment | Continued
Can Banks Really Just Create Money?
Observers of Fractional Reserve Banking have noticed that your deposit into a bank can cause the bank to offer new loans well above and beyond the size of your deposit.
January 10th, 2013 | The Daily Reckoning+ | 2 comments | Continued
Why Banks Won’t Buy Risk Free Gold
The Basel III banking reforms have changed gold’s classification to a risk free asset. But banks won’t rush out and buy gold to take advantage of this. Here’s why…
November 15th, 2012 | Greg Canavan+ | 0 comments | Continued
Australian Banks on the Run
Many of the commercial wealth management firms in Australia are extensions of the Australian banks, just under a different label. And at the current pace, it won’t be long before the assets under management in the superannuation system exceed the assets on bank balance sheets. Which raises an interesting dilemma…
August 15th, 2012 | Dan Denning+ | 5 comments | Continued
The LIBOR Fix
Like Al Capone who was ultimately convicted of tax offences, banks may yet find that the LIBOR fix forces significant changes to banking regulation and practice.
July 24th, 2012 | The Daily Reckoning+ | 1 comment | Continued
Why Banks Worship Money
If you’d like to find out more about the nature and history of a fraudulent little enterprise known as ‘banking’, read on. You’ll find out why Jesus really threw out the ‘money changers’ from the house of God. And why the money was there in the first place.
July 21st, 2012 | Nick Hubble+ | 2 comments | Continued
The LIBOR Alarm – When Governments and Banks Disable An Early Warning System
In an abnormal world, rising LIBOR is an indicator of rising mistrust in the credit markets. When LIBOR rises, banks get defensive and reluctant to lend to one another. When it’s not being manipulated, therefore, LIBOR is a kind of alarm in the credit markets that tells you when a bomb is about to go off.
July 10th, 2012 | Dan Denning+ | 2 comments | Continued
Another Chapter Out of the Bad Banker Playbook
We have ‘banks behaving badly‘ fatigue. Regulators busted British bank Barclay’s for manipulating interest rates. But is anyone really surprised? It’s just the tip of the iceberg. The industry is full of crooks.
June 28th, 2012 | Greg Canavan+ | 1 comment | Continued
How Nice to Have Friends At the Fed
Wall Street’s perverse incentives…inequality…and the financial markets’ recent extreme instability all have the same source — the feds. Their ersatz money led to an extreme increase in the amount of credit.
June 21st, 2012 | Bill Bonner+ | 0 comments | Continued
A Financial Sector Sector in Desperate Need of Correcting
Unfortunately the Great Correction is not correcting the sector that needs correction most. The financial sector. Why? The feds protect it
June 20th, 2012 | Bill Bonner+ | 0 comments | Continued
So Much For The Planned Economy
The more the government screws with money and the more public finances are intermingled with banks, the harder it is for ordinary people to make plans. The money-tampering leads to bubbles. Bubbles destroy bank balance sheets. The disease spreads to the government and to the economy.
June 13th, 2012 | Dan Denning+ | 3 comments | Continued
Catch QE-22
We can see Joseph Heller having a quiet chuckle about this. In order to keep on ascending, global markets need another dose of ‘Quantitative Easing‘ – QE Mark III. But for the Feds to justify another round of QE or debt monetisation, they need to see the market fall considerably, perhaps by 20 per cent or more.
April 5th, 2012 | Greg Canavan+ | 1 comment | Continued
European Banks: The Biggest Fire Sale in History
Europe’s banking sector holds 2½ times as many assets as the U.S. banking sector. It’s huge. And it’s in big trouble. Europe’s banking sector needs cash – mountains of cash.
March 26th, 2012 | The Daily Reckoning+ | 1 comment | Continued
Greg Smith – A Former Goldman Sachs Insider Finally Speaks Out
Greg Smith is not exactly a prophet…and he probably isn’t a perfect saint. But he seems to know something about the difference between good and bad…between moral and immoral…and between ordinary Wall Street greed and putrid Goldman- Sachs-style greed.
March 19th, 2012 | Eric J. Fry+ | 2 comments | Continued
When People Learn That Deficits Do Matter
The public was told America was the most robust, dynamic economy on earth. They were told that housing prices would rise forever…that deficits didn’t matter…and that spending and splurging – rather than saving and capital formation – was what made a nation great.
February 29th, 2012 | Joel Bowman+ | 0 comments | Continued
The Dark Side of Profitable Banks
The Reserve Bank of Australia (RBA) left the cash rate at 4.25% last week. But one by one, the Big Four banks are raising their rates anyway.
February 13th, 2012 | Dan Denning+ | 4 comments | Continued
