Today’ Age reports that the Trust will try to raise $280 million from the issue. Some of that will be used to pay off nearly $450 million in securities that mature in December. Hmm. Selling more debt to pay off old debt. There’s never a bad time for that if you don’t have cash.
August 27th, 2009 | Dan Denning | 6 comments | ContinuedAll Posts Tagged With: "banks"
Roubini Says United States Will Climb Out of Recession Towards End of Year
Maybe he will be right. Maybe this downturn will resemble Japan’s multiple recessions over the last two decades. Or maybe it will be a single, deeper and longer lasting slump – like the one in the early ’30s. We don’t know. Either way, it should be thought of as a depression…
August 19th, 2009 | Bill Bonner | 0 comments | Continued
Banks or BHP?
Are Australian banks going to be able to sustain their dividends? Over the last ten years, bank fee income has become a big driver of bank profitability (and the source of the dividends paid by banks). The credit crunch has crunched the amount of money banks make lending money.
August 13th, 2009 | Dan Denning | 3 comments | Continued
The FDIC Is in Trouble
As we all know, the Federal Deposit Insurance Corporation (FDIC) guarantees depositors that they’ll get their money back if a bank fails, at least up to a certain amount. To fund its operations, the FDIC collects small fees from the banks…
August 6th, 2009 | Bud Conrad | 3 comments | Continued
Does Bernanke Really Not Understand His Fate?
Mr. Bernanke defended himself and the Fed against suggestions that he was too eager to aid large financial institutions last fall and winter, while sacrificing the interests of small businesses and everyday American citizens.
July 31st, 2009 | Byron King | 13 comments | Continued
Investors in China Have Learned Nothing From the Crash of ‘07-’08
With no barriers to entry, profit margins are always squeezed by competition. And growth is limited too – other builders are always starting up. If the investor paid 40 times earnings, he can only get 2.5% on his money…
July 31st, 2009 | Bill Bonner | 0 comments | Continued
What’s Good for Goldman is Generally Bad for the Country
Goldman makes money by separating investors from their money. Nothing wrong with that; someone has to do it. But the big banks are most profitable when speculation is rampant and debt is growing. That is, when people are going further and further into debt…
July 27th, 2009 | Bill Bonner | 1 comment | Continued
Federal Reserve and the Huge Tsunamis of Money
Then, to add that essential touch of surreal whimsy that seems to permeate all things fiscal and monetary these days, I additionally note that not only did Total Reserves go down in the banks by $48 billion to $848 billion, but I will note that Total Reserves one year ago were a miniscule $41 billion! Hahahaha!
July 7th, 2009 | Mogambo Guru | 3 comments | Continued
Iran Suffering from Own Version of Peak Oil
What’s going on in Iran? When the old guard starts shooting the young people, that’s not a favorable sign for the long term.
Last time Iran had a revolution, in 1979, it ushered in turmoil in the oil (and gold) markets for several years. Of course, the invasion by Iraq in 1980, and subsequent war, had something to do with it as well.
Hyper-Deflation on the Streets of Paris
Scarcely a block from our office in Paris is a monetary phenomenon that has escaped the financial press. In one of the highest-cost economies in the world, you can buy a woman’s shirt for 2 euros. A dress? Four euros. A man’s jacket can be had for the price of a cup of coffee.
June 29th, 2009 | Bill Bonner | 19 comments | Continued