Lehman

Tyler Durden's picture

Gold In 2016: "Economic Power Is Shifting"





An unseen bubble at the heart of the financial system is deflating with unknown consequences. When bubbles deflate, and here we are talking about one in the hundreds of trillions, bad debts are usually exposed. Even though much of the reduction in outstanding OTC derivatives is due to consolidation of positions following the Frank Dodd Act, much of it is not. When free markets reassert themselves, and they always do, the disruption promises to be substantial. We appear to be in the early stages of this event. If so, demand for physical gold can be expected to escalate rapidly as a financial crisis unfolds.

 

 
Tyler Durden's picture

The Last Time Automakers Channel-Stuffed This Much, Lehman and GM Went Bankrupt





Don't show Phil LeBeau this chart!

 
Tyler Durden's picture

DVA Is Dead: Banks Will No Longer "Profit" From Collapsing





The debt valuation adjustment, or DVA, will no longer be included in net income, according to revisions to the fair-value measurement standard published by the Financial Accounting Standards Board Tuesday.  The DVA rule increased net income when a bank’s bonds tanked, on the theory that the firm could buy back its bonds at a lower price and benefit from the decline in value.

 
Tyler Durden's picture

Nassim "Black Swan" Taleb On The Real Financial Risks Of 2016





Though "another Lehman Brothers" isn't likely to happen with banks, it is very likely to happen with commodity firms and countries that depend directly or indirectly on commodity prices.

 
Tyler Durden's picture

Treasury Curve Collapses To Flattest In 8 Years





This was not supposed to happen. The spread between the 2Y Treasury yield (which is soaring 7bps today) and 10Y (higher by 3bps) has plunged back below 120bps. The current cliff-edge has been support for the curve four times in the last 8 years but with GC rates blowing out to 7 year highs, one wonders if the size of the moves means we break to new regime lows.

 
Phoenix Capital Research's picture

During the Next Crisis, Central Banking Itself Will Fail





The situation is clear: the 2008 Crisis was the warm up. The next Crisis will be THE REAL Crisis. The Crisis in which Central Banking itself will fail.

 
 
Tyler Durden's picture

Why The Fed Will Never Succeed





The Fed will never succeed in its attempt to manage inflation and unemployment by varying interest rates. This is because it and its economists do not accept the relationship between, on one side, the money it creates and the bank credit its commercial banks issue out of thin air, and on the other the disruption unsound money causes in the economy. This has been going on since the Fed was created, which makes the question as to whether the Fed was right to raise interest rates recently irrelevant.

 
Tyler Durden's picture

Slammed By Redemption Requests, These Hedge Funds Raise "Gates" To Avoid Firesale Liquidations





Needless to say, these names are just the beginning: once the redemptions - and gating - genie is out of the bottle, there is no putting it back.

 
Tyler Durden's picture

Stock Market "Fragility" Indicator Highest Since Lehman, BofAML Warns





"...Unfortunately, we don’t see conditions improving and only becoming more acute as liquidity continues to deteriorate, asset valuations become increasingly stretched, and the Fed navigates the unwind of the greatest policy experiment in history."

 
rcwhalen's picture

Feldkamp: The Macroeconomics of Crises and Fraud





Financial fraud is any method by which deception or duplicity induces those with money to "invest" in a scheme...   

 
Tyler Durden's picture

Bank Counterparty Risk Surges To 4-Year High





In September, interbank credit markets flashed a quick and brief warning that something was up... and Janet folded. Three months later and following The Fed's oddly-timed rate-hike, interbank counterparty risk - as proxied by The TED-Spread - has spiked over 45% in 2 days, the most since Sept 2008 (Lehman).

 
Tyler Durden's picture

The Great Disconnect Is Palpable





Taken together with the rather steep drop in US industrial production, the risks of a full-blown and perhaps severe recession have undoubtedly grown. Unlike what the FOMC is trying to project via the federal funds rate, a rate that isn’t being fully complemented, either, at this point, visible economic risk is not just rising it is exploding.

 
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