• Knave Dave
    05/23/2016 - 18:16
    This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve...

Shadow Banking

Tyler Durden's picture

Kyle Bass Was Right: SocGen Does The Math On China's Staggering NPL Problem, Issues Dire Warning





"As SOE restructuring progresses, it will also become more apparent that Chinese banks need to be rescued. We estimate that the total losses in the banking sector could reach CNY8 trillion, equivalent to more than 60% of commercial banks’ capital, 50% of fiscal revenues and 12% of GDP."

 
Tyler Durden's picture

The Endgame





There is a growing fear in financial and monetary circles that there is something deeply wrong with the global economy. Publicly, officials and practitioners alike have become confused by policy failures, and privately, occasionally even downright pessimistic, at a loss to see a statist solution. It is hardly exaggerating to say there is a growing feeling of impending doom. In short, growing evidence of price inflation and stagnant production can be expected to materially increase the risk of a global banking and currency meltdown. The best escape-route is ownership of anything other than purely financial assets and fiat currency deposits. No wonder the price of gold, which is the soundest of moneys, appears to have entered a new bull market.

 
Tyler Durden's picture

China Stops Trying To Fool The World; World Is Sorry





China is the latest in a growing line of “command and control” economies that have risen to prominence, captured the imagination of people who find free markets too messy for comfort, and then blown up when it turns out that dictators have no idea how to allocate capital.

 
Tyler Durden's picture

China Bond-Sale Cancellations Soar As BofA Warns "Default Risk Is Mispriced"





While BofA's base-case calls for "no crisis," the soaring levels of bond-sale cancellations hitting the non-government credit markets is starting to make Asia strategist David Cui nervous...

 
Tyler Durden's picture

China "Wealth Manager" Disappears With $154 Million





It now appears that we've reached the point in the China speculative frenzy game where instead of waiting around to be arrested, those running shady ponzi schemes are now pulling the ripcord, clearing out as many bank accounts as possible, and just disappearing.

 
Tyler Durden's picture

Hillary Clinton's Full 'Speech' To Goldman Sachs





"Money was a lazy b*tch, until you put it to work! And look how it works! Look how it grows! Materializes out of nowhere! As leaders, innovators, captains of finance, you will always be subject of the jealous resentment, the petty tantrums of the unwashed masses, the insolvent, the irresponsible, the invidious, the losers. They will envy you, your successes, they will despise you, but they secretly want to be like you! Irresponsible single mothers, uneducated immigrants, lead-drinking ghetto-strutters, homeless, crying, babies, starving senior citizens, obnoxious, entitled African Americans who object to having bullets pumped into their bodies by police: all these people are angry, entitled, and making noise, and they are endangering our democracy and economy, our greatness."

 
Tyler Durden's picture

George Soros Warns "China Resembles US In 2008", Hard Landing "Practically Unavoidable"





China's massive credit growth in March (and $1 trillion surge in total social financing in Q1) is a "warning sign" according to billionaire George Soros, "because it shows how much work is needed to stop the slowdown." Speaking at an event in new York this evening, Soros commented on "troubling developments" in China, the anti-corruption drive's impact on capital outflows and the real-estate bubble "feeding on itself." His conclusion, rather ominously, was that despite all the naysayers and fiction-peddlers, China "resembles US in 2007-8," before credit markets seized up and spurred a global recession.

 
Tyler Durden's picture

The New Middle Kingdom Of Concrete And The Red Depression Ahead





Massive borrowing to pay the interest is everywhere and always a sign that the the end is near. The crack-up phase of China’s insane borrowing and building boom is surely at hand.

 
Tyler Durden's picture

"Where Else Can I Put My Money?" - China Starts Arresting People As Crisis It Created Comes Full Circle





Just like their foray into stocks, Chinese investors are finding out that it isn't easy to make money in short-term lending either. Defaults are on the rise and China's subprime lending bubble has burst.  And just like it responded to "malicious short sellers" when stocks went down, China is now arresting those involved in the shadow banking world.

 
Tyler Durden's picture

BofA Notices Something Troubling: China's Debt Bubble Has Burst





We have noticed a sharp jump since mid-2015 in the total value of reported defaults of shadow banking products, defined here as non-bank-loan debt instruments that include bonds, trusts, and credit products offered by peer-to-peer (P2P) and various offline wealth management companies (WMCs).... The question is whether the government is closing the stable door after the horse has bolted. We suspect that the answer is yes.

 
GoldCore's picture

Silver Is Coiled Spring and Will “Explode Higher”





Silver was battered so low in recent years’ gold bear that it’s spent 2016 trading near stock-panic levels relative to gold. Such super-low prices aren’t sustainable, so silver is due for a massive mean reversion higher

 
Tyler Durden's picture

Bizarro M&A: China's Most Innovative Capital Outflow Yet





The scale of China's outbound investment wave is so great that the value of deals announced in the third quarter of 2015 exceeded China's current-account surplus for the same period, according to data compiled by Bloomberg. That trick will be repeated in the current quarter, unless China puts in its best current-account performance since 2008. What is going on here? The answer is quite simple: following Beijing's ramp up in capital outflows, China has found a new and innovative way to export funds offshore.

 
Tyler Durden's picture

P2P Property Lending Explodes In China; Officials Panic





“Funds used for down payments cannot be borrowed." You might think that what’s implied there is too bad to be true - even in the increasingly ludicrous world of P2P and marketplace lending. But in fact, P2P lenders in China have indeed been funding down payments on homes, embedding an enormous amount of excess leverage into the market while simultaneously driving up prices in Tier-1 cities.

 
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