Creditors

S&P Futures Unchanged As Europe Rises; Dollar Slide Sends Oil Above $47

In the latest quiet trading session, European shares rose while Asian stocks fell and S&P futures were little changed. Minutes of the Fed’s last meeting damped prospects for a U.S. interest-rate hike, sending the Bloomberg Dollar Spot Index doen 0.3%, approaching a three-month low. Dollar weakness continues to buoy commodities, with the Bloomberg Commodity Index set for the most enduring rally in more than two months, as WTI flirted with $47

33,000 Americans Have Deposited $1.8 Billion In Savings With Goldman Sachs

Since the closing of Goldman's acquisition of GE Capital's banking unit this April, Goldman has netted $1.8 billion in new deposits thanks to its overly generous 1.05% interest rate which as noted above is among the highest on offer anywhere. Some 33,000 people who’ve opened accounts,

Back To Square One: Why The Financial System Needs To Reset

"Zero interest rates and negative interest rates and Europe and Asia are a huge signal that we are almost at the point where central banks have lost their tools to perpetuate a sense of confidence, that things are cyclical.... If you were to apply the Bretton Woods model for valuing money today, gold would be up to $15,000 an ounce..."

The Charade Continues: London Gold And Silver Markets Set For Even More Paper Trading

Today the London Metal Exchange (LME) and the World Gold Council (WGC) jointly announced the launch next year of standardised gold and silver spot and futures contracts which will trade on the LME’s electronic platform LMESelect, will clear on the LME central clearing platform LME Clear, and that will be settled ‘loco London’. Together these new products will be known as LMEprecious.’

Frontrunning: August 3

  • European bank rebound not enough to save world stocks from further losses (Reuters)
  • Republican rift widens as Trump declines to endorse Ryan, McCain (Reuters)
  • New Rough Patch for Trump Campaign Roils Republicans as Defections Grow (WSJ)
  • Obama says Trump unfit to be president (FT)
  • World’s Largest Oil Hedge Set to Make Billions for Mexican State (BBG)

IMF Studies Sovereign Debt Restructurings, Admits Its Policy Was Responsible For Greek Depression

In a paper published this month, the IMF seeks to study the relationship between GDP and sovereign debt restructuring using data from 1970-2010. Its main conclusion may be shocking: “the central finding of this paper is that sovereign debt restructurings with external private creditors can affect per capita GDP growth performance in the years after debt restructuring.“ And these are the people in charge of advising nations on managing their economy…

Corrupt Or Just Stupid? Markets Hand Corporations An Unlimited Credit Card

The crucial thing to understand about credit bubble dynamics is that borrowing money from people desperate to lend and using the proceeds to overpay for assets requires only monkey-level intelligence. So while a bubble is inflating it’s impossible for most of the media, banking and political communities to tell the legitimate operators from the hopelessly corrupt and/or extremely stupid. That’s the world we’ve created by handing monetary printing presses to governments, and by extension to corporate CEOs.