Too Big To Fail

Tyler Durden's picture

There Is No Solution To The Crisis

The end result of Fed policy appears to be to keep us in perpetual economic malaise, to keep us all confused. They keep interest rates low masking the huge structural issues of huge federal budget deficits and whenever the economy appears to be picking up a bit, they threaten to take away the government props of QE and low interest rates faster thereby slapping down the economy. All this happening while the ticking time bomb of huge Federal Debt accumulates more potency. There is no solution to the crisis, merely a choice of which roads to choose, a deflationary debt collapse, or a hyperinflationary dollar collapse or World War III. Pick your poison...

Tyler Durden's picture

"Too Big To Fail Is A License For Recklessness" America's Banking System Is A "Fragile House Of Cards"

"Too Big to Fail is a license for recklessness. These institutions defy notions of fairness, accountability, and responsibility... They benefit from the upside and expose the rest of us to the downside of their decisions. These banks are too powerful politically as well... Effectively we're hostages because their failure would be so harmful. They're likely to be bailed out if their risks don't turn out well and the largest financial firms in America can hide an enormous amount of risk in derivatives which creates a house of cards — a very fragile system."

Tyler Durden's picture

Baltimore As A Microcosm Of America

Baltimore, Maryland is in many ways the perfect microcosm for these United States of America.

If you still don’t get that, you’ll be in for a rude awakening in the years ahead.

Tyler Durden's picture

71% Of Wall Street Bankers Admit They Are Too Big To Fail (And Underpaid)

Wall Streeters are not happy. According to the latest Bloomberg poll, 48% believe they are paid less (or much less) than they had hoped for. With the biggest banks cutting costs as new regulations force derisking and deleveraging (in theory), pay is taking a hit (although not so much for the CEOs). As one headhunter noted, "they're still making decent money, but it’s nothing like 2007," but ironically, a massive 71% of Wall Street bankers admit that their banks are still Too Big To Fail.

Tyler Durden's picture

The Financial Markets Now Control Everything

The financial markets don't just dominate the economy - they now control everything.

Tyler Durden's picture

The Virtual Immunity Of The Well-Connected: Gen. Petraeus Edition

The leniency shown former CIA Director (and retired General) David Petraeus by the Justice Department in sparing him prison time for the serious crimes that he has committed puts him in the same preferential, immune-from-incarceration category as those running the financial institutions of Wall Street, where, incidentally, Petraeus now makes millions. By contrast, “lesser” folks – and particularly the brave men and women who disclose government crimes – get to serve time, even decades, in jail. Behold, the virtual immunity enjoyed by the well connected.

Tyler Durden's picture

Frontrunning: April 21

  • The Fed Still Wants Easy Money (BBG) - you don't say
  • ECB Is Studying Curbs on Greek Bank Support (BBG)
  • Banks Paid to Borrow as Three-Month Euribor Drops Below Zero (BBG)
  • Baoding Tianwei is first state-owned Chinese enterprise to default (Reuters)
  • Major Chinese Developer Says It Can’t Pay Dollar Debts (BBG)
  • Wall Street Has No Idea How Much Money Venezuela Has (BBG)
  • Goldman Sachs, Morgan Stanley Find Different Paths to Profits (WSJ)
  • Does the Collapse of a Chinese Developer Signal the Start of More Defaults? (BBG)
  • Retail Traders Wield Social Media for Investing Fame (WSJ)
Tyler Durden's picture

Bank Of England Exposes US Cronyism: Questions Why Buffett's Berkshire Hathaway Is Not Too Big To Fail

If you thought currency-wars were a problem, just wait until crony-wars begin. In a stunning show of disagreement among the omnipotent, The FT reports that a Freedom of Information Act request has confirmed The Bank of England wrote to US authorities seeking clarity about Berkshire’s absence from a provisional list of "systemically import" (Too Big To Fail) financial institutions (SIFIs). The US Treasury declined to comment...

Tyler Durden's picture

Peter Thiel Blasts: The American Political System Is "Not A Democracy Or Constitutional Republic"

Calling our society a democracy is very misleading... We’re not a republic; we’re not a constitutional republic. We live in a state that’s dominated by these technocratic agencies.” Thiel says that organizations like the Federal Reserve have been allowed to roam too far, calling government agencies “deeply sclerotic and deeply nonfunctioning.”

Tyler Durden's picture

Four TBTF Banks Threaten To Withhold Funds To Democrats Over Elizabeth Warren's Wall Street Rants

Having already proven that their institutions are above the law in the aftermath of the financial crisis, executives at the “Too Big to Fail and Jail” banks have decided it’s time to teach Senate Democrats a lesson. Not being content with trillions in taxpayer backed bailouts to protect and further consolidate virtually all wealth within their oligarch fiefdoms, these bankers are irate at the notion that a commoner would dare criticize their unassailable crony privilege. What Wall Street wants is one hundred Chucky Schumers in the Senate.

Tyler Durden's picture

"Belief That European QE Will Work Is Far-Fetched," Bill White Warns This Will "End Very Badly"

"I'm not sure [European QE] is going to do anything - certainly, nothing that's good. The fundamental problem here, as I see it anyway, is that the European banking system is still broken... I think, increasingly, bankers are discomforted more than anything else (it's not just the ex central bankers but increasingly the people that are still holding the levers)... they are starting to ask whether they have somehow been backed into a place where they don't really want to be.... Unfortunately, [it] is getting bigger and bigger. There is a possibility at least that this whole exercise could end very badly."

Phoenix Capital Research's picture

The $100 Trillion Reason the Fed is Terrified of Deflation

DEBT DEFLATION is a nightmare for the Fed because it would almost immediately bankrupt both the US and the Too Big To Fail Wall Street Banks.

Tyler Durden's picture

Annaly CEO: Central Bankers Are Witch Doctors, Demands "Return To Market-Driven Pricing"

"My hope is that as policy makers of the world continue to prescribe their remedies for the ailing economic patient, that they do not render it worse off... As with their predecessors, I suspect there is no doubt in the minds of our central bankers that they are the smartest they’ve ever been. Yet, I fear they are not the smartest they will ever be."

Tyler Durden's picture

The Forgotten War – Understanding The Incredible Debacle Left Behind By NATO In Libya

"In retrospect, Obama’s intervention in Libya was an abject failure, judged even by its own standards. Libya has not only failed to evolve into a democracy; it has devolved into a failed state... As bad as Libya’s human rights situation was under Qaddafi, it has gotten worse since NATO ousted him."

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