What in the World is Going on with Banks this Week? Emergency meetings, banker summits, crashing European banks.......Submitted by Bruno de Landevoisin on 04/12/2016 17:29 -0400
Austria Just Announced A 54% Haircut Of Senior Creditors In First "Bail In" Under New European RulesSubmitted by Tyler Durden on 04/10/2016 21:08 -0400
Following a decision by the Austrian Banking Regulator, the Finanzmarktaufsicht or Financial Market Authority, Austria officially became the first European country to use a new law under the framework imposed by Bank the European Recovery and Resolution Directive to share losses of a failed bank with senior creditors as it slashed the value of debt owed by Heta Asset Resolution AG.
Earlier today, Japan's government spokesman Suga came as close as possible to admitting that there was in fact a tacit "Shanghai Accord" agreement when he said that the Group of 20's agreement to avoid competitive currency devaluation "does not mean Japan cannot intervene in response to one-sided currency moves." It got better: in an interview with Reuters Suga added that Japanese Prime Minister Shinzo Abe's comment to the Wall Street Journal last week that countries should avoid "arbitrary intervention," was misunderstood and does not rule out intervention for Japan, Suga said.
Italy is the “too big to fail”, “elephant in the room”. Should Italy try Austria’s solution, it presumably would cause a “chain reaction with ripple effects that would be felt across the European banking system.” Instead, officials will attempt to “ringfence” the problem, hoping to “sweep it under the rug” where presumably a “€360bn pile of non-performing loans” will cure itself, eliminating the need for additional bail-ins
Today at 5:30pm, the four people who have done more to shape the U.S. and global economy in the past four decades more than anyone else, will sit down to discuss their respective philosophies and explain how they see the present and future of the world. At that time, Janet Yellen will appear with her predecessors Ben S. Bernanke, Alan Greenspan and Paul Volcker for a round table discussion. The event at the International House marks the first time the four Fed chiefs have gathered for a joint public appearance.
With European markets closed across the continent on Monday as the Easter holiday continues, overnight Asia was busy with China Shanghai Composite letting off some steam, and closing down 0.7% at session lows on concerns the Shanghai and Shenzhen home bubble have been popped by the politburo, Japan was a different story with the Yen sliding following a report by the Sankei newspaper that Abe will announce in May his intention to delay the planned levy hike, coupled with additional reports that Japan will unveil a major fiscal stimulus (and just on Friday Abe said he is "not thinking at all about supplemental budget" at this time).
2008 was the warm up.
In nearly every single major recession and panic of the last century, there was a sharp rise in the gold/silver ratio. The crash of 1987. The Dot-Com bust in the late 1990s. The 2008 financial crisis. At 82x, this isn’t normal. In modern history, the gold/silver ratio has only been this high three other times, all periods of extreme turmoil—the 2008 crisis, Gulf War, and World War II. This suggests that something is seriously wrong. Or at least that people perceive something is seriously wrong.
The top economist for Moody’s (one of the largest rating agencies in the world) said yesterday, as he unleahed the latest jobs guess, that there are absolutely zero signs of recession. These sameguys were so drunk on their own Kool-Aid that in October 2007, Moody’s announced that “the economy is not going to slide away into recession.” Everyone assumed that the good times would last forever. This is what virtually assures negative interest rates in America.
And then there’s S&P’s “pessimistic scenario.”
When a leading nominee for President gets something exactly right, we should applaud them for it. In this case, Donald Trump’s call to audit the Federal Reserve is dead on correct. Most Americans don’t realize this, but the Federal Reserve has far more power over the economy than anyone else does – including Barack Obama. The funny thing is that the Federal Reserve is not even part of the federal government. It is an independent private central bank that was designed by very powerful Wall Street interests a little over 100 years ago. It is at the heart of the debt-based financial system which is eating away at America like cancer, and it has no direct accountability to the American people whatsoever.
Months After Welcoming 100,000 Refugees To The U.S. John Kerry Warns Migrants Pose An "Existential Threat" To EuropeSubmitted by Tyler Durden on 02/15/2016 17:24 -0400
We find it ironic that the person now warning about refugees posing "a near existential threat" to an entire continent, was just five months ago so very eager to welcome 100,000 Syrian refugees to the US. We wonder if his policy on accepting those same refugees with open arms has changed as of this moment... and who gets to profit this time?
How the Hong Kong trading floor played a pivotal role...
"The markets are not insulated from each other but are coupled in a “destructive” way, a mirror image of QE dynamics. Risks are becoming unpinpointable. Problems are global while politics remains inherently local allowing the existing trends to remain unchecked and self-reinforce. Any action causes further problems, which creates a quicksand effect -- everyone is both a victim and an accomplice."
Banks, economists, brokers, financial advisers and other experts did not see the first crisis coming in 2008 and they are not seeing it now.