It may come as news to some, but the Fed really has no idea what it is doing (no, really - just read "Fed Confused Reality Doesn't Conform To Its Economic Models, Shocked Its Models Predict "Explosive Inflation" if you don't believe us ). After all, there is a reason for the saying "we are in uncharted waters." Which is why, to help it in its monetary decision-making, every few months, the Fed issues a survey to the 21 Primary Dealers (used to be 22 but MF Global showed that often the PDs also have no idea what they are doing) asking for their feedback on when it should tighten, how big it's balance sheet should be, how big monthly POMO should be, what the Fed Funds target range "may" be, where the GDP and unemployment rate will be, what the likelihood of the 10 Year soaring to 4% by the end of 2014 is, and other pertinent questions that frame the "independent" thinking of the Fed.
Dare 'Ye Test the Analysis To Ascertain It's Virility? Madness, I say! Sheer, Utter Madness! In other words - SYSTEMIC RISK is here, NOW!
Taxation Without Representation: UK Taxpayers Learn From The Irish What US School Kids Get Taught In 3rd GradeSubmitted by Reggie Middleton on 06/05/2013 10:58 -0400
How bad bank debts, concealed bank liabilities and US grade school history collide in Taxation Without Representation!
- Japan’s Stocks Correction Raises Stakes for Abe’s Growth Plan (BBG)
- China Failure to Grow With $1 Trillion Is Warning to Li (BBG)
- Blankfein Leads Bank CEO Pay With $26 Million Deemed Overpaid (BBG)
- IMF says ‘no evidence yet’ of Abenomics hurting other economies (FT)
- Europe Seeks CFTC Delay in Imposing Swaps Rules on Banks (BBG)
- Fed's Rosengren: 'Modest' QE3 cut may make sense in a few months (Reuters)
- Who’s who of Obama lobbyists pushes Keystone pipeline (FT)
- China to Study Joining U.S.-Led Trade Accord After Japan Added (BBG)
- ‘Cov-lite’ loans soar in dash for yield (FT)
- Cambodian police clash with thousands of garment workers, 23 hurt (Reuters)
- Obama Accepting Sequestration as Deficit Shrinks (BBG)
- Having done nothing to restore confidence in a fragmented market, the SEC turns back to main street fraud (WSJ)
- Europe's austerity-to-growth shift largely semantic (Reuters)
- Germany thwarts EU in China solar fight (FT)
- In EU-China dispute, Beijing warns of trade (FT)
- U.S. Oil Boom Divides OPEC (WSJ)
- Record Cash Sent to Balanced Funds (BBG)
- Hilsenrath: Fed Wrestles With Market Expectations About Pace of QE (WSJ)
- Worse-Than-Cyprus Debt Load Means Caribbean Defaults to Moody’s (BBG)
- States Raise College Budgets After Years of Deep Cuts (WSJ)
- U.K. Banks Cut 189,000 With Employment at Nine-Year Low (BBG)
If Cyrpus blew up with bank assets/GDP leverage of 700% & Iceland blew up with leverage of 880%, what should we expect from Scotland @ 1,250%? Of course, this leverage number likely excludes those top secret charges I found last month...
Central Bank governor now admits Irish banks need more capital. As the truth seeps slowly into the mainstream media, who do you believe - Reggie or the Central Bank of Ireland?
As Forewarned, The Irish Savers Have Just Been "Cyprus'd", And There's MUCH MORE "Cyprusing" To ComeSubmitted by Reggie Middleton on 04/23/2013 07:57 -0400
This is the beginning of War and those on the losing side don't even realize they're in battle. Remember, Merkel has already declared the EU to give up sovereign authority for the greater good, the United Germanic Republic of Europe! This is how she will do it.
Socialism is a dirty word in many parts of the US, but as the FT reports, the government has turned its mortgage market into a giant nationalised enterprise on a par with China’s Red Army with over 90% of mortgages subsidized by the state and aided by so-called "progressive" or "redistributive" policies. In the UK, the government have also become entwined with the housing market, albeit in different ways. Rates have also been slashed close to zero; tens of thousands are buying homes arm-in-arm with the state under 'shared equity schemes'; and one-third of all mortgages come from the two state-controlled banks (Lloyds and RBS); very reminiscent of supposedly communist China, where most banks are majority-owned by the state with small public floats. The question remains how can they avoid another crash if and when they withdraw support from the market? "It’s broadly accepted nowadays that China still lives under the banner of ‘communism’ despite capitalist markets playing an increasing role in society. In Britain and America – at least where the housing market is concerned – the reverse process seems to be taking place."
I Illustrate How The Irish Banking Cancer Spreads To The UK Taxpayer And Metastasizes Through US Markets!Submitted by Reggie Middleton on 04/12/2013 11:45 -0400
And you thought this would stay in Ireland and Cyprus right? Keep hope alive. RBS bailout per UK taxpayer = £1,414 or €1,654 or $2,177. but they didn't tell you everything, did they?
- George Soros: 'What Japan is doing is actually quite dangerous because" (BBG)
- North Korea lacks means for nuclear strike on U.S., experts say (Reuters)
- Yellen latest to hint about slowing of QE3 (FT)
- Hollande approval rating hits new low (FT)
- Hollande Dismisses Reshuffle as Crisis Hits Popularity (BBG)
- Japan Upper house approves full 5 year term for BOJ gov. Kuroda (BBG)
- US: Plan to Cap Tax Breaks Is Gaining Steam (WSJ)
- BOE Says Investors May Be Taking ‘Too Rosy’ a View of Stress (BBG)
- Kiwis Say ‘Ni Hao’ as China Ties Trump Australia Sales (BBG)
- Obama Avoids Trading Threats With North Korea’s Kim (BBG)
One Of Ireland's Biggest Banks Busted Fudging The Books? Nah! Busted Concealing Debt? Nah! Busted.. Cyprus Was Just The PreambleSubmitted by Reggie Middleton on 04/02/2013 09:59 -0400
Mounds of cold, hard, indisputable evidence not found ANYWHERE else! Damn, you thought Cyprus was newsworthy? Ireland already Troika'd & they're bigger than Cyprus. Depositor recap of banks looks inevitable if this research is right!
It begins here: Introduction of cold, hard evidence of bank shenanigans (with complete documentation) that A) should be prosecuted & B) cause enough concern to make you worry about your bank's integrity.
As we noted yesterday, Slovenia appears the inevitable next player set to experience the non-template of uninsured depositor bail-ins and the good-bank-bad-bank solution that was uniquely applied to Cyprus. However, global investors should rest assured as this miracle of modern financial engineering will not be a detriment to the nations as the Slovenian banks will be internally recapitalized (in the latest proposal) by a government guarantee. Simply put, in the world of European accounting idiocy, Reuters reports "this would not result in an immediate spike in the government's debt level, because the authorities would initially provide banks with guarantees rather than newly issued securities." Which leaves us asking, just how much is a one-week-old Slovenian government's guarantee worth in real money? And why didn't the Cypriot government just 'promise' to do 'whatever it takes' to support their banks' bad assets? Of course the chance of the bailout happening just surged:
- *SLOVENIA WON'T NEED BAILOUT, ECB'S KRANJEC SAYS
- Cyprus Salvaged After EU Deal Shuts Bank to Get $13B (BBG)
- Last-minute Cyprus deal to close bank, force losses (Reuters)
- Anxious, angry Cypriots face uncertain future (Reuters)
- Spain Brings the Pain to Bank Investors (WSJ)
- First Switzerland now... U.S. Seeks Answers in Liechtenstein on Tax Cheats (BBG)
- Rebel Free Syrian Army founder loses leg in Syria blast (Reuters)
- European Stocks Rise on Cyprus Deal as Italian Bonds, Crude Gain (BBG)
- Michael Dell Likely to Sweeten Buyout Bid to Save Legacy (BBG)
- Bankers’ pay premium is narrowing (FT)
- Surgery Restoring Penis After Prostate Cancer Increasing (BBG)
- Silent or supportive, conservatives give gay marriage momentum (Reuters)