Europe is having a decidedly difficult time coping with the influx of asylum seekers streaming into the bloc from the war-torn Mid-East. For its part, Austria has suspended Schengen and plans to deport 50,000 refugees. Fortunately, the country has a plan to boost "voluntary" repatriations.
Puerto Rico has devised a scheme the island says will help put it back on the path to debt sustainability. You can read on to learn the specifics, but in essence, the commonwealth wants creditors to take a massive haircut which may or may not be ameliorated down the road.
China's mid-tier banks are piling up exposure to the riskiest subset of borrowers at a time when economic fundamentals are deteriorating on a near daily basis. Meanwhile, this exposure is being carried on a line item that allows the banks to avoid provisioning for the losses that will almost certainly materialize in the not-so-distant future. At one bank, this one line item is larger than the entire Philippine banking system.
The time for more insanity has come... It is the Keynesian mantra: the fact that the policies recommended by Keynesians and monetarists, i.e., deficit spending and money printing, routinely fail to bring about the desired results is not seen as proof that they simply don’t work. It is regarded as evidence that there hasn’t been enough spending and printing yet.
In the latest news out of the 1MDB saga, "Switzerland's chief prosecutor said on Friday a criminal investigation into state fund 1Malaysia Development Berhad (1MDB) had revealed that about $4 billion appeared to have been misappropriated from Malaysian state companies."
"The amount of the allegedly misappropriated funds amounted to approximately $ 4 billion, whose purpose is the subject of further study"...
“The real enemy of investors is not these fairly routine 10 or 20% downturns. The real enemy is the bear market that is associated with a recession or crisis, the one that knocks your equity block down by 40 or 50%. And actually it isn’t even the depth that is the real enemy. For most investors the enemy is time.”
Coordination on production cuts between OPEC and Russia has always been a long shot, and probably still remains an unlikely development. The big difference this time around, though, is Russia’s change in tone. Saudi Arabia had hinted at its willingness last year to undertake a 5 percent production cut if Russia did the same, but up until now Moscow never really took the idea seriously. However, don’t get too excited.