"China will exert a negative influence on the rest of the world by reinforcing the deflationary tendencies that are already prevalent. China is responsible for a larger share of the world economy than ever before and the problems it faces have never been more intractable...the EU is on the verge of collapse. The Greek crisis taught the European authorities the art of kicking the can down the road, although it would be more accurate to describe it as kicking a ball uphill so that it keeps rolling back down. The EU now is confronted with not one but five or six crises at the same time."
The optimists have had things their own way in an almost unbroken line since March 2009. January 2016 so far would suggest that the pragmatists are now in charge.
There are roughly 80 U.S. companies that had $100mm in LTM revenue and that had negative EBITDA less CapEx.
The combined market cap of these 80 companies is just shy of half a trillion dollars.
The combined Total Enterprise Value of these 80 companies is $775 billion.
The combined debt of these 80 companies is $325 billion.
One of the Main Causes of Our Economic Problems
by a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens
"The new Portuguese administration is not the first government to resort to asset confiscation and populist expediency. Venezuela and Argentina also belong to this club. The important distinction is that Portugal is a eurozone member state, and its systemically important banks are regulated by the ECB."
As the towering forces that are prevailing against failing global economic architecture and the pit of debt beneath that structure, as laid out below, it is clear that the 'Epocalypse' - encompassing the roots "economic, epoch, collapse" and "apocalypse" - is here, and it is everywhere. The Great Collapse has already begun. What follows are the megatrends that will increasingly gang up in the first part of 2016 to stomp the deeply flawed global economy down into its own hole of debt.
In principle, the BRRD, or “bail-in directive” as it is also known, is quite a good idea. The fact that lending money to fractionally reserved banks or even merely depositing it with them, involves risks needed to be firmly reestablished. One simply cannot expect that banks and their creditors will be bailed out by taxpayers at every opportunity. Besides, the admission that there are risks in banking that have hitherto been glossed over or have even been lied about was long overdue. However, Europe’s governments are now likely to find out that the current monetary system with its fractionally reserved banks is actually incompatible with this admission, so to speak.
Eurozone’s assumptions are way too positive...
“The commonwealth has committed itself to a ‘scorched earth’ strategy of blaming its fiscal and structural problems on lenders, Congress and others, in an effort to deflect responsibility and obtain retroactive application of bankruptcy laws.”
Energy investors got clobbered in 2015, and are hoping for things to turn positive as we head into the New Year. What can we expect in 2016? Here is a rundown of some key trends to watch for...
There 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?
- Global share market settles after stormy start to year (Reuters)
- Stocks Extend Losses as Yen, Gold Rise on Lingering China Unease (BBG)
- China battles to shore up stocks, yuan after globe-shaking slide (Reuters)
- Volkswagen faces billions in penalties as U.S. sues for environment violations (Reuters)
- Obama tightens gun rules, requires more background checks (Reuters)
Greek Central Bank Warns Country "Unlikely To Survive Another Bout Of Instability" As Bank "Jog" AcceleratesSubmitted by Tyler Durden on 01/04/2016 09:29 -0500
Something unexpected happened on the road to the latest Greek "recovery": the local population no longer believes one is coming.