Too Big To Fail

Federal Regulators Accuse Banks Of Not Having Credible Crisis Plans, Would Need Another Bailout

We were not surprised to read this morning that federal regulators announced that five out of eight of the biggest U.S. banks do not have credible plans for winding down operations during a crisis without the help of public money. Which is precisely the point: now that the precedent has been set and banks know they can rely on the generosity of taxpayers (with the blessing of legislators) why should they even bother planning; they know very well that if just one bank fails, all would face collapse, and the only recourse would be trillions more in taxpayer aid.

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

The Future of Money

The reason is that banks understand their core reason to exist is threatened by peer-to-peer, decentralized payment platforms and currencies. If payments no longer need to be routed through a centralized trusted institution, then one core function of banks disappears. If peer-to-peer lending and securitization becomes easier and cheaper due to the blockchain, then banks' function of allocating capital also vanishes.

Frontrunning: April 1

  • Saudi Arabia Will Only Freeze Oil Production If Iran Joins (BBG)
  • Japanese gloom ensures slow start to quarter for world stocks (Reuters)
  • Saudi Arabia Plans $2 Trillion Megafund for Post-Oil Era (BBG)
  • Prices Sag in Warning to ECB Even as Manufacturing Picks Up (BBG)
  • China factories scent hint of spring, Europe still chilly (Reuters)
  • Theranos Devices Often Failed Accuracy Requirements (WSJ)

Frontrunning: March 31

  • Roller-coaster first quarter ends with shares, dollar under pressure (Reuters)
  • Oil prices slide as U.S. crude stocks hit record (Reuters)
  • GE Files to End Fed Oversight After Shrinking GE Capital (WSJ)
  • FDA Eases Rules for Abortion Pill, Making Access Simpler (BBG)
  • Kremlin denies report of Russia-U.S. deal on Assad's future (Reuters)
  • Thirst for Gasoline Fuels Oil Rally (WSJ)
  • Landlords in last-minute rush to beat stamp duty rises (BBG)

"Voting For President Is Like Picking-Out Which Gun You Wanna Get Shot With"

“Nobody for President. That’s my campaign slogan. We got money for wars but can’t feed our homeless. The government is hopeless. It’s like a reality show. The Real lives of the House Liars... all this pageantry is just designed for fools. They gonna give you the one they choose. Too big to fail, too rich to lose. And I’m still too broke to vote."

What’s The Frequency Janet?

To now dismiss Fed policy causation as “correlation theory” is laughable. The markets are now so intertwined and Fed dependent the observation of whether correlation is causality has been rendered moot. Without the Fed – there is no market. That’s now a proven fact. Period.

Hybrid Wars Part 1: Disrupting Multipolarism Through Provoked Conflict

Hybrid War is one of the most significant strategic developments that the US has ever spearheaded, and the transitioning of Color Revolutions to Unconventional Wars is expected to dominate the destabilizing trends of the coming decades. Those unaccustomed to approaching geopolitics from the Hybrid War perspective might struggle to understand where the next ones might occur, but it’s actually not that difficult to identify the regions and countries most at risk of falling victim to this new form of aggression.

Donald Trump Is Right: Here Are 100 Reasons Why We Need To Audit The Federal Reserve

When a leading nominee for President gets something exactly right, we should applaud them for it.  In this case, Donald Trump’s call to audit the Federal Reserve is dead on correct.  Most Americans don’t realize this, but the Federal Reserve has far more power over the economy than anyone else does – including Barack Obama.  The funny thing is that the Federal Reserve is not even part of the federal government.  It is an independent private central bank that was designed by very powerful Wall Street interests a little over 100 years ago.  It is at the heart of the debt-based financial system which is eating away at America like cancer, and it has no direct accountability to the American people whatsoever.