Matt Taibbi — like many other cynical financial market observers — has learned to regard every pronouncement from Goldman Sachs with suspicion. Recent experience has demonstrated that “tame” and “harmless” are attributes that rarely operate within the Goldman Sachs business model.
February 6th, 2012 | Eric J. Fry | 0 comments | ContinuedAll Posts Tagged With: "European banks"
Debts With Unsolvable Insolvency
Even before debt became such a big problem, real growth had already begun to disappear from the developed world. There has been none in Japan for the last 20 years…and almost no real growth in the US private sector for the last 10 years. In Europe, grosso modo, the story is similar.
January 18th, 2012 | Bill Bonner | 0 comments | Continued
How Central Bankers Attempt to “Cure” Insolvency
Whenever a central bank cannot provide direct, overt assistance to a specific insolvent investment bank or government, not to worry, a central bank can still provide indirect, covert assistance.
January 9th, 2012 | Eric J. Fry | 4 comments | Continued
Investment Hopes, Fears and Preparations for 2012 Investors
“Prepare for the worst; hope for the best,” was always good advice. And here at The Daily Reckoning it is the foundation of our investment approach. We never know what will happen. So, what we want are investments that don’t depend on knowing.
January 9th, 2012 | Bill Bonner | 2 comments | Continued
When Banks Borrow Themselves Into Oblivion
In years gone by it was a real embarrassment for a bank to go cap in hand to its central bank to borrow funds. It was a sign of weakness. Clearly that’s not the case anymore, not in Europe anyway.
December 22nd, 2011 | Greg Canavan | 11 comments | Continued
Should Banks and Government Merge to Become One?
There was a problem we promised to solve on Monday. To refresh your memory, the problem is that both banks and governments need money. Governments borrow from banks. But because government finances are so terminally bad in Europe, government bonds are destabilising the capital structure of the banking system.
December 21st, 2011 | Dan Denning | 3 comments | Continued
How the Banking Crisis Affects the Real Economy
What Australia has – commodity wealth – is strategically important. But what it doesn’t have – capital – is economically urgent.
The banking crisis will mean small Aussie businesses may start to feel the crunch of Europe’s credit crisis in 2012.
December 19th, 2011 | Dan Denning | 5 comments | Continued
Shadow Banking and The Golden Pyramid
Yesterday in our article about gold’s price going down we discussed gold and the shadow banking system. Today we’ll explain how it all fits together and what it means for the markets and your investments.
December 16th, 2011 | Greg Canavan | 2 comments | Continued
Why Liquidity Solutions for Solvency Problems Won’t Work
Once again, the Fed is distorting the signals the private market is trying to send. The market is saying there is a solvency problem and the Fed is saying it’s just a matter of liquidity.
But that’s the question – liquidity or insolvency?
December 2nd, 2011 | Greg Canavan | 1 comment | Continued
European Bankers go to the Mattresses
Are Europe’s banks now playing a game of hide-and-don’t-lend? According to overnight deposits made by European banks at the European Central Bank, the answer is “yes.” The Financial Times reports that European banks parked around €350 billion at the ECB on Friday. There, huddled with all the other frightened deposits, it earned 0.25% in interest.
June 8th, 2010 | Dan Denning | 2 comments | Continued
Dubai, the Financial Center Built on Sand
No on is sure what is going on. Most people take from this story what we knew all along: lending to shady characters in sunny places is not an easy way to make money.
December 1st, 2009 | Bill Bonner | 1 comment | Continued
