• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

non-performing loans

Tyler Durden's picture

Italy's Bank Bailout Fund Already One Third Empty After First Bank Rescue





Italy's bad bank bailouts fund, "Atlas", is about to become the proud new owner of around 90% of Italy's Popolare di Vicenza after investors only bought a fraction of the mid-tier bank's €1.5 billion cash call, Reuters reports.  Popolare di Vicenza, which was due to announce the outcome of the public share offer later on Friday, said earlier in the day that it had raised €4.25 billion, at the lower end of a 4-6 billion euro range it had initially targeted, from 67 mostly domestic financial institutions.

 
Tyler Durden's picture

It's The Debt Stupid: Scotiabank Warns "At Some Point 'The Future' Becomes 'Today'"





Low interest rates attempt to buy time. The idea is to bring consumption forward until the economy heals on its own as capital projects are completed. But those projects never began this time. The end result is ever-higher debt that borrows more and more from the future. Unfortunately, it borrows from the future without making the future any brighter through solutions to root causes of economic ailments. At some point, the “future” becomes “today”.

 
Secular Investor's picture

Joke Of The Week: Italy’s Bank Rescue Fund





The Italian financial system was holding in excess of 200 billion Euro of non-performing loans...

 
Reggie Middleton's picture

The Bearish Case Against Oil Gets... Bearier...





Bears vs Bulls, Buyside vs. Sellside and shorting oil with the USDEUR pair through the blochchain because of EU bank exposure and a NIRP-happy ECB.

 
Tyler Durden's picture

2012 Redux - They Really Don't Know What They Are Doing





The insolvent remain insolvent, the money still not money, and the recovery something else entirely. Central banks possess no recovery magic; they can’t even deliver their own version of one.

 
Tyler Durden's picture

Size Matters: Analysts Mock Italy's Tiny "Atlas" Bailout Fund Meant To Support €360BN In Bad Debt





Yesterday Italy announced that it had taken the long-anticipated first step to alleviate investor concerns surrounding the stability of the banking system. Local banks, insurers, and asset managers have agreed to fund a €5 billion backstop for these troubled loans. Speculation of the imminent deal had sent Italian (and European) bank stocks soaring yesterday. The deal is named Atlante, or Atlas, after the mythological god who held up the sky. This is appropriate, as it truly is a myth to believe that setting aside 1.5% to resolve a €360 billion bad debt problem will solve anything.

 
Tyler Durden's picture

Italy Seeks "Last Resort" Bailout Fund To "Ringfence" Troubled Banks, Meeting Monday





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

 
Tyler Durden's picture

China's Latest Problem: Surging Subprime-Housing Loans





Government efforts to tackle a glut of vacant housing in China by spurring home lending have triggered a bigger problem: a surge in risky subprime-style loans that is generating alarm. Home buyers in China normally put down a third of the cost of a new property upfront. But a rapid rise in buyers borrowing for their down payments—an echo of the easy credit that cratered the U.S. housing market and sparked the financial crisis—has led authorities to clamp down

 
Tyler Durden's picture

Germany To Greece: No Debt Relief For You





Whether or not the IMF intended to use a Greek credit event to destabilize Europe as the greek government first alleged, or whether this was "nonsense" as Lagarde responded to Tsipras letter, is irrelevant - ultimately the underlying premise was whether or not Greece gets debt relief, something the IMF has been insisting on since the third bailout package. And as is well-known, it was Germany - not Greece - that stood in the IMF's way. So after a terse weekend in which relations between Greece and the IMF devolved once again to frigidly sub-zero levels, moments ago Germany chimed in with its position, which can be summed up in another familiar word: "nein".

 
Tyler Durden's picture

Chairman Of Insolvent Chinese Steel Company Hangs Himself Day Before Bond Maturity





While Beijing dithers, and does its best to kick the can as far as it can without doing anything, it was too late for one person: on Friday morning, Dongbei Special Steel Group reported that the company's Chairman Yang Hua, 53, was found dead after hanging himself in his residence. Why? Because tomorrow the company has an 800 million yuan debt payment which it will not be able to make.

 
Reggie Middleton's picture

The European Banking Crisis is Here!





If it looks like a crash, smells like a crash, acts like a crash, is it a recovery? Here's the hard hitting evidence that you just won't find anywhere else. Just don't shoot the messenger! BoomBustBlog style research is back with a vengence.

 
Tyler Durden's picture

How Lenders Control The Future Of Oilfield Services





For the thousands of new entrants into the oilfield services (OFS) industry in the past 15 years - both workers and companies – if you didn’t know what senior secured lending covenants were a year ago, you sure do now. Many new borrowers are enduring a painful education on the legal implications of the lending documents they signed. There is said to be lots of capital on the sidelines looking for deals. OFS owners and managers up against a debt wall should consider finding some.

 
Tyler Durden's picture

Canadian Housing & Mortgage Investment Corporations – Time To Worry?





Canada is vulnerable because its households are heavily indebted and its housing market is overheated. The CMHC just released its quarterly Housing Market Assessment report, which found the following among its conclusions: “Overvaluation and overbuilding are the most prevalent problematic conditions observed across the 15 centres covered by the HMA. Overvaluation is detected in 8 centres while overbuilding is detected in 7”.

 
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