Credit Line
What Is Money Printing?
Submitted by Gold Standard Institute on 01/06/2016 02:35 -0500There is a populist idea of money printing. The idea is that banks can just print what they want, enriching themselves... does it really work this way?
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A Free Market in Interest Rates
Submitted by Gold Standard Institute on 12/17/2015 01:50 -0500Many people wonder why couldn’t we let the market set the interest rate. After all, we don’t have a Corn Control Agency or a Lumber Board. So why do we have a Federal Open Market Committee? It’s a very good question.
Chesapeake Bonds Plummet To 27 Cents Of Par After Company Hires Restructuring Advisor
Submitted by Tyler Durden on 12/14/2015 20:18 -0500Chesapeake has hired restructuring advisor Evercore "to shore up its balance sheet as commodity prices extend their decline." This means that Evercore will seek to further slash its debt, almost certainly be equitizing a substantial portion of it, and handing it over as equity in the new company to CHK's bondholders. As a result the company's 2023 bonds, which were trading at par as recently as late May, just rumbled to a record low 27 cents on the dollar.
It's Firesale Time For Brazil's Fake Goldman; The Real Goldman Answers 6 Key Questions
Submitted by Tyler Durden on 12/14/2015 14:11 -0500“They need to show they’re selling quickly to calm markets and stop the free fall of their shares. For that to happen they need to accept the price buyers want to pay.”
"People Are Afraid": Market Panics As Brazil's "Goldman Sachs" Scrambles To Raise Cash, Junk'd By Fitch
Submitted by Tyler Durden on 12/04/2015 14:31 -0500"People are afraid. They don’t like to see the headlines and that is why they are withdrawing their money. It shows the panic that is going on from the investors’ perspective.”
Frontrunning: December 4
Submitted by Tyler Durden on 12/04/2015 07:39 -0500- The Jobs Report Probably Won't Change the Fed's Mind on Liftoff (BBG)
- U.S. authorities look for militant links to shooters in California mass slaying (Reuters)
- Neighbors, Acquaintances Shocked That Couple Are San Bernardino Shooting Suspects (WSJ)
- ECB Fumbles the Stimulus-Baton Hand-off, Mussing Up Fed’s Plans (WSJ)
- OPEC Heads for Status Quo as Members Clash Over Crude Output Cut (BBG)
- Foreigners drawn in as fear and loathing grip China's finance industry (Reuters)
Tying The Valeant Roll-Up Together: Presenting The Goldman "Missing Link"
Submitted by Tyler Durden on 10/30/2015 13:55 -0500While the Valeant soap opera has had constant, heart-pounding drama for weeks and following yesterday's report that it allegedly fabricated prescriptions, even an element of career-ending (and prison-time launching) criminality, so far one thing had been missing: an antagonist tied to Goldman Sachs. We are delighted to reveal the "missing link", one which ties everything together. Its name is Howard Schiller.
"I Would Say Don't Worry" Says Chinese Central Banker As Indian Central Banker Says "World Economy Is Looking Grim"
Submitted by Tyler Durden on 10/07/2015 19:17 -0500"I would say, don't worry" said Yi Gang, deputy governor of the People's Bank of China, after the International Monetary Fund warned of risks in China's economic challenges.
"The world economy is looking grim" - said Raghuram Rajan, Indian central bank governor and former chief economist of the International Monetary Fund.
An Un"real" Move: Brazil Currency In Freefall After Record Low Consumer Confidence
Submitted by Tyler Durden on 09/24/2015 09:20 -0500It just keeps getting worse, and worse, and worse...
There Is No Exit: Why China's Plunge Protection Is Here To Stay
Submitted by Tyler Durden on 07/27/2015 10:12 -0500Update: CHINA TO CONTINUE STABILIZING MARKET, SENTIMENT, PREVENT RISKS, CSRC SAYS
As Beijing pledges to remain supportive amid a harrowing decline in Chinese stocks, China may find itself with no exit strategy for its plunge protection program. As BofAML notes, "An 'indefinite' holding period is certainly possible – it’s how the government had dealt with the last round of bad debts in the banking system, i.e., by shifting them to bad banks and never crystalizing the losses. But even under such a scenario, there may be unintended consequences."
"Far Worse Than 1986": The Oil Downturn Has No Parallel In Recorded History, Morgan Stanley Says
Submitted by Tyler Durden on 07/22/2015 21:51 -0500The forward curve currently points towards a recovery in prices that is far worse than in 1986. As there was no sharp downturn in the ~15 years before that, the current downturn could be the worst of the last 45+ years. If this were to be the case, there would be nothing in our experience that would be a guide to the next phases of this cycle, especially over the relatively near term. In fact, there may be nothing in analysable history.
Will The Oil Patch Bust Trigger Recession?
Submitted by Tyler Durden on 07/22/2015 10:16 -0500This seemingly inexhaustible credit line is now drying up, with severely negative consequences for oil producers with debt that's coming due. The row of dominoes swaying unsteadily in these stiff winds won't take much to topple.
Is The US Shale Industry About To Run Out Of Lifelines?
Submitted by Tyler Durden on 07/21/2015 10:51 -0500"Lenders in general are increasing pressure on oil companies either to raise more equity or do some sort of transaction to pay down their credit lines and free up extra cash."
"There’s another redetermination cycle in the fall, And I’m not going to say likely but it’s possible we’ll be selectively downgrading some clients."
"The Spell Is Broken" In China, Selling Pressure To Remain "Relentless": BofAML
Submitted by Tyler Durden on 07/20/2015 19:15 -0500"Now that the spell is broken, we expect that many holders may want to sell to the forced buyers in the market. In addition, although difficult to assess accurately, due to a lack of data, we estimate that around 1/5 of the free float is still carried on margin. The high margin cost means that selling pressure is high as long as investors do not expect the market to go up significantly.we expect the market to experience another leg down, possibly within months."
The Pressure Just Shifted From Greece To The US & EU
Submitted by Tyler Durden on 05/31/2015 12:30 -0500Countries like Spain and Portugal may by now scratch their heads about taking a hard line on the Greek issue. They may not have fully realized to what extent the eurozone is indeed a shared commitment. All eurozone nations now have at least another 30 days to think that over. The main risk in that period is that Greece may decide to leave on its own.



