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who cares... you can't buy put options on that one.
Mr Kettle, meet Mr Pot.
exactly...how the hell do they think US banks "arent" insolvent?
"However, the increases in assets and equity are artificial and without real economic substance: ..." Nooooo Shit!
Recapitalization thru overleveraging. Wonder where they got that idea?
Yeah, it's a good thing the Fed doesn't increase system leverage with silly stuff like paying banks on their capital reserves, purchasing over-the-counter securities, engaging in CDS hedge fund activities with the banks they theoretically "regulate", etc. When we feed back Fannie&Freddie "profits" into new mortgage purchases and further leverage, it's because those profits are real.
bwwwhahahahahahahaha....moody's is issuing stern warnings to flaky chinese banks when the ones in its own back yard are poster children for fraud, insolvency, and corruption....where is edward munch when you need him?
and all of this is coming from an institution which performed bold acts of deception in affirming the soundness of cds, cdos and other crapulent financial engineering marvels?
It's a macabre dance of thieves!
It's a banking Three Penny Opera! Ben sure won't get to play Mack The Knife :)
Beginnings of a globally un_coordinated downward spiral?
If CIC needs recap due to losses on US exposure, and US relies on continued mass credit from China, we have ourselves a perfect storm. Yipes.
As a temporary solution to short circuit the spiral and provide some cover, Ben might propose that US just start printing Renminbi for external trade :-) Throw in a skyscraper or two in NYC.
Did that new Chinese rating agency not just downgrade US debt et al ?
I guess the TBTF didn't take that lightly and struck back with this.
Political economics is war by another means.
Of course, war is political economics by another means.
Really though, it's a win-win for both parties as they blame each other for currency manipulation, all while robbing the world blind.
One of the causes of the "green shoots" effect has been the continued blowing of bubbles in other parts of the world outside of US and Europe. Canada, China, Australia and etc. Those bubbles can't last forever. It will pop. The global ponzi can not run forever!
What about this kind of "Sternn" warning,
Don't worry, the Chinese are really smart.
Great piece from the FT last year, "China's murky world of local finance" in the Dragonbeat section.
Local off balance sheet funding in concert with bank lending all mandated by the Central powers in Beijing and implicitly backed by Beijing.
That sounds really smart.
How do you say "shell game" in Mandarin?
But this in no way applies to the federal reserve "reinvesting" mbs proceeds into treasuries.
Why that displays the "strength" of the underlying mbs paper, and thus the American Homeowner!
That's absolutely right!What could possibly go wrong?
Ok, this is getting so assinine and pot/kettle that the humor is almost unbearable as every country has their FIAT currency run to the bottom. Central banksters are using everything they can to keep the fraud going. Fraudulent accounting tricks, 'hidden' free money that is then sent to buy debt/etc with instant ~2% 'profit', etc. This will all end very, very badly.
Had dinner this weekend with a Chinese PHD (math) who moved here to teach..
She ,yes ,she, said that the common folks are getting scared of the rem-bi loosing value and many are now buying.. wait for it.. PM's
anecdotal of course but her input seems more on the ground, then what we get out of the media.
Hmm, Chinese people are not liking the paper money game either.
Seems we humans have been hard wired to
want PM's when economic conditions become
Am not surprised at either the SHE part or the buying of gold/silver. Last time i as in China about 6 months ago it was extremely obvious and easy to buy gold/silver bars directly from banks and/or within various malls at the jewelry store. Unlike, say, in the EU, UK or USA where you truly have to look to buy. In China gold and silver bars are virtually everywhere for the purchasing and prominently displayed right in the main/front window.
Moody's is allowed to stay in business as long as they don't release the same analysis on US banks. They like the SEC are now a tool of the administration...
but...but...I was assured that the chinamen were going to take over the world just like the japs were in the 1980s. I mean, I saw a few movies with this theme, for cryin out loud.
Don't worry, that magical asian centrally planned economy is IMMUNE to any laws of economics or even physics for that matter.
Yep, the crazies have no idea that all these systems are based on the same flawed assumptions. They are all part of the global system and when it's over for the global size they will all go down the drain.
Yep, the Japs are going to own everything then the Europeans, then the Chinamen, then I guess the North Koreans... running out false hope it looks like.
Chinese movies always involve a little wire work... LOL.
A Visualization of China’s Bubble Economy
The system is insolvent on day number 1. The books never balance, really what everyone is running from is a balancing of the unbalancable books.
PS: OK for indian mafia to downgrade chinese mafia.
from Moody's?....thanks for the laugh shills.
American consumer solve all problems... Modern Chinese Mantra
is that the Chinese sovereign wealth fund is likely in a major need of recapitalization, courtesy of its extensive US financial sector equity holdings.
AKA source of funds
Well, it certainly looks like the CIC is looking to hedge themselfs:
Thank goodness 'Moody's isnt out with a surprisingly frank appraisal of the American banking system's precarious capitalization trend' Then we would be in trouble
The fun things you can do when there's no checks and balances.
Works like this: state-owned banks use $28 billion of their fractionally-reserved money to buy long-term bonds issued by their state holding company (Huijin). Huijin then injects that $28 billion into a share issue by the same group of banks, and the central bank agrees to classify it as a $28 billion injection of "equity", even though banks actually just lent it to themselves via their holding company. Now banks are allowed to increase lending by another $240 billion.
Is 'Huijin' Mandarin for 'Enron'?
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