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Financial Execs Urge Fed To Rein In "Over-Exuberance... Hangover Will Be Difficult To Cope With"
In a stunningly honest turn of events - though likely self-preserving - a number of senior financial services executives are reportedly urged authorities around the world to bolster their crisis-busting arsenals amid fears that ultra-low interest rates have increased the risks of financial instability. As The FT reports, the heads of companies including HSBC, UBS and BlackRock will on Monday release a joint statement demanding policy-makers "address emerging market inefficiencies in the financial system, such as over-exuberance within asset classes." Policy-makers must “lean against something that is making people feel good but is actually going to give them a hangover they will find difficult to cope with."
Following warnings from The Fed's Janet Yellen that stock valuations are "quite high," and numerous more dire forecasts from the BIS (the central banker's central bank), The FT reports, the heads of companies including HSBC, UBS and BlackRock will on Monday release a joint statement backing the use of macroprudential tools, but warn that rules, if too narrowly applied, could push risks into the more thinly regulated realm of shadow banks...
The statement from finance chiefs including Douglas Flint, HSBC chairman, Anshu Jain, Deutsche Bank co-chief executive, Michel Liès, head of Swiss Re, and Larry Fink, chairman and chief executive of BlackRock, is being co-ordinated by the World Economic Forum.
It says the inclusion of macroprudential policies in policy makers’ tool kits “helps to address emerging market inefficiencies in the financial system, such as over-exuberance within asset classes, for example in real estate lending”.
In the words of Mr Flint, the policies have the capacity to “lean against something that is making people feel good but is actually going to give them a hangover they will find difficult to cope with”.
...
The decision by finance chiefs to issue a joint endorsement of regulation is unusual, but it comes with caveats. The statement says that macroprudential policies need to be deployed across the financial system, not just on companies such as commercial banks that fall within the traditional regulatory perimeter.
Applying macroprudential measures only to regulated entities could “limit credit formation and push credit intermediation outside to the shadow banking sector and thus be a source of systemic risk”, the finance chiefs say, adding that the effectiveness of the tools has yet to be proven, especially in countries with complex financial systems.
The statement also argues that, if macroprudential tools are poorly co-ordinated, they could end up being a source of systemic risk in themselves. The US is among the markets with the most fragmented systems of governance — its regulation is split among multiple agencies, raising questions over the effectiveness of the country’s macroprudential regime.
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YA THINK!?
The bankers are probably impatient and want the market to crash so they have an excuse to ban cash and really make some money.
Just get the regulators busy lining up the taxpayers to bail-out TPTB.
Priceless... they may as well have said "Release the Kraken"...
This is becoming a NOOSEance. ;-)
Looney
Another "somebody in government should do something about this" from people in a position to profit from it if they play their cards right.
IF problem, THEN government. No other solutions exist on the table, apparently. How fucked up has this all gotten?
I think they are going to turn off the algos.
Whoops.Thought it was the Keurig.
More fucked up than that even.
The NWO wants a world currency and a world government that will look a lot like the unelected officialdom running the EU for the bankers that Farage keeps ranting about.
To get there they intentionally create the problem that will require their final NWO solution.
It's that simple.
Fuck me...I wonder if Bernanke will finally stop with the excuses when this whole experiment of his goes tits up...nahhh...as ususal, he'll blame someone else.
"Applying macroprudential measures only to regulated entities could “limit credit formation and push credit intermediation outside to the shadow banking sector and thus be a source of systemic risk”, the finance chiefs say, adding that the effectiveness of the tools has yet to be proven, especially in countries with complex financial systems"
Seems to me, they are worried about their competition.
All your macroprudential measures are belong to us...
The financial industry demanded our present clusterfuck and are now worried the monster might eat them instead. Boo friggin' hoo, I don't think there's anything that can be done by the FED that won't crash our little house of cards, but it'll be fun to watch.....
as far as i am concerned, fuck it and em, i don't have any paper investments - nada, not a 401 or anything. just good ole uncle sams s.s. promise. ha.
it is the pensionors that should be quacking in their boots. depending, though, as most gov,org pensions have the full backing of the taxpayer.
so whatever happens happens...
oh yeah, when Goldman is saying something like this, for example, you absolutely positively know they are betting on the opposite... the level of dishonesty has NEVER been greater
Outlawing cash will undoubtedly be tried. Will it work? Maybe...
http://www.globaldeflationnews.com/governments-are-secretly-preparing-to...
Sounds like they have had a conference call to confirm they have all secured their short positions but the FED can't get Skynet to relinquish control. The robots are in command. "want to play a game?"
They are trying to hedge themselves against investigations when everything does crash. By saying this, they can tell all of the investigators, "We warned them and no one listened, so we are not to blame."
Exactly!
Expect to see the biggest WITCH HUNT when it all falls apart soon cause as the politocos proclaim themselves the SPANISH INQUISITION !
Don't get your hopes up... they own the SEC, Justice Department, Fed, courts and politicians.
Besides... Greenspan himself already warned the muttonheads to "... Buy Gold..." at the CFR in October of 2014.
And Bernanke... "no rate normalization during my lifetime" in April 0f 2014.
How true. It will be like a circular firing squad as everyone tries to find someone to blame all the while parroting that they "warned" everyone. Get the popcorn and beer, this is going to be a great show!
It will be a truly incredible show... a once in a millenium event.
His lifetime could be cut short so they could raise rates before the end of the year to save face and credibility on both sides here.
If I was Bernanke I'd be staying away from hot tubs and exercise equipment right about now.
It's called wiping the fingerprints off the murder weapon, but the FED is already covering their ass so things could get interesting in a Chinese curse kind of way.....
But then if they blame Regulators, ...then maybe we will see some Whistleblowers since it ain't like the Regulators are all making the big bucks.
OCC, Treasury, CBO, FDIC, SEC, CFTC, FHA, FINRA, SIPC, FTC, FSOC, OFR, BCFP.
But Janet Yellen is pretty good at laying in on how the FED took steps to remove risk. I don't see any Responsibility being taken by the FED or any Whistleblowers.
http://ftmdaily.com/global-issues/federal-reserve-fraud/fedgate-whistleb...
I've said for months, you will know the Ponzi endgame is getting near when the sociopaths start turning on each other. They are just telegraphing the fact that if they don't all toe the line, someone is going to be taken out, and it isn't going to be "me".
Indeed.
http://research.stlouisfed.org/fred2/graph/?g=1bKd
My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.jobs-review.com
Awwww poor babies, having trouble making money are you? Must be tough having unlimited amounts of interest free money
So they're all short and losing money. Got it.
Some days I still sit and marvel in amazement that this.... artifice, I guess, called our current financial system has been erected and supported and defended by so many at a societal cost so great.
This insanity we've built is preferrable to simply having let the crash of '08 clear the market and then rebuild from firmer ground? Really?
It speaks volumes about how hard banks can lean on the society in which they exist and still no action is taken against them. In fact, quite the opposite, there appear to be no limits to the resources that are consumed to keep their rotting bodies on life support just so we can say "technically, they're still alive."
Artifice? More like Orifice! As in they don't know the difference between theirs and a hole in the ground.
The mood of societies is a lot like a super tanker, it takes a long time and a lot of energy to change it's direction, and once it's moving...............good luck with the brakes. My high tech guillotine prototype is nearly ready for mass production. It's only for splitting logs though. Honest.
3D printed? Can I get the CAD/CAM file?
does it slice on both strokes? multiple neck yokes on each stroke? head discharge chute?
"Difficult To Cope With"
I read that as higher Insurance rates, higher banking rates or NIRP, Higher Property Taxes, higher priced Dwellings, more small packages at inflated costs, small soda cans at $1, Fast Food Lunches at $8, Higher Utilities & Phone Rates, Europe Style Hourly Rates for Mechanics or Repairmen.
Hand out "Macro Prudence Now" buttons.
Macroprudential. Just another made up word so fellas like they could have a job.
Nice Shawshank reference.
the gamblers admit to having a gambling problem and are now asking the casino to please help them stop gambling. ROFL!!!
Policy makers have failed over the last 25 years. They either resign or we shoot them. Pick your poison.
I was going to say our Corporations have been taken over through 'gaming' the system as well. You could call it a coup. The compensation and administrative overhead of Executives is as bad as congressional corruption. They can't give an Inch of their Comp Package. So I guess you have to fire them to get rid of them, only they rigged the system so they can never cut these High Corporate Costs.
9 Presidential Elections, 9 Coups. But 1913 was a clear cut case of a Coup. McCain-Feingold Campaign Finance Reform was a Coup. Each Election year for Congress is a Coup as they exchange Favors & Access to Lobbyists for Contributions or Lobby Dollars. Gramm-Leach-Blibley is a Coup.
Are all of these a Coup? I'm not very well read on deregulation.
1974 - Federal Energy Administration Act of 1974 (R. Nixon)
1974 - Energy Reorganization Act of 1974
1977 - Department of Energy Organization Act of 1977 (merged ERDA and FEA under USDOE & created EIA)
1981 - Executive Order 12287, (R. Reagan, removed price controls on Petrol)
1994 - WTO Formed, Marrakech Agreement (W. Clinton)
1994 - War on Jobs, NAFTA, Deregulation of Trade, 3 Nations (W. Clinton)
1996 - Energy Deregulation (W. Clinton, followed by ENRON Scandal)
1999 – Gramm-Leach-Bliley Act
2000 – Commodity Futures Modernization Act of 2000
2000 - Permanent Normal Trade Relations with China and WTO Membership for China (W. Clinton)
2002 - McCain–Feingold Act (G.W. Bush, Campaign Finance, soft money unlimited)
2005 - Energy Policy Act (G.W. Bush, subsidies, excluded clean air Water acts)
2010 - Citizens United v. Federal Election Commission (money is free speech for corps)
"Dear Ms. Yellen: In order to address emerging market inefficiencies in the financial system, such as over-exuberance within asset classes, for example in real estate lending, we request you provide us with separate bailout checks made payable to our respective holding companies. Love Always, The Same Banks from Last Time"
Once you repeat Worldcom, Enron, Bear Stearns, Libor, and Lehman Brothers. We see terrorist within the White House.
Common denominator? Dishonest accounting! ALWAYS.
Yes. I'am thinking African Union pencil whipping operations. Could be wrong, gut feeling.
Accounting Control Fraud.
I guess that is where you have control over your own books and make them fraudulent.
Liquidate the TBTF
Think Dodd-Frank allows for Liquidation...
Title II – Orderly Liquidation Authority
In addition to the supervised banks, insured depository institutions and securities companies that may be liquidated under existing law by the FDIC or Securities Investor Protection Corporation (SIPC), Covered Financial Companies that may be liquidated under this title include insurance companies and non-bank financial companies not covered elsewhere.[67]
Without military backing the law becomes a moot point. They can't enforce it without them. The 'homeland' army is not going to work when emperor Obamatine or whoever it is sends out executive order 66. If it did they would have abolished the military already and went back to a militia system.
Yeah, I always feel like our military & GAO must seize the Banking system at some node or port... we know all world transactions come back through New York for instance.
Seizing the system would prevent capital from being sent out by the banks in an effort to start a new bank somewhere, embezzle funds, cause a liquidity crisis, or just preserve their own personal accounts.
I would think this is National Security. But we never know who really has control or if it is an honest broker even if it is the Military.
Funny how the advice for 'the good of the world' is always regulate my competitors more.
Uh, how about just raising rates?
MS. YELLEN: I'm having trouble hearing you clearly... remain over the printing press you say? Reign over the student debts?
US Liquidity Crisis, Road Warrior Govt in USA
- Got Predatory Markets Yet? Crime not High Yet? Then it is still possible to Print through Credit and Sales to Kids.
- Just Target young people 16-25 years old in Mass marketing
- Sub-Prime Student Loans
- Sub=Prime Auto Loans, ATV, Boat, Skidoo Loans
- Sub-Prime Mobile Home Sales
- Sub-Prime Phone Aps, Phone Sales, Computers on Credit
- Music, Stereos, Headphones, IPODs
- Create New Teen Trends, to suck money from Grandparents, Parents, and Kids
Obama needs to string along TPP to hide new contracts and continue raiding investment growth by short term gains.
https://www.bis.org/publ/work501.htm
Not all individuals from the BIS are bad. Only the 97%. Always enjoy reading working papers.
Debt Service could be called Economic Leakage or Velocity Leakage much like Wealth Being Extracted from USA and Exported Off-Shore. We call this Rentier Behavior in a certain sense too. Excessive Debt service is a wealth transfer and certain to dampen consumption.
"In addition to leverage, the aggregate debt service burden is an important link between financial and real developments. Using US data from 1985 to 2013, we find that it has sizable negative effects on credit and expenditure growth."
The first section mentions Economists not seeing the dangers of Credit to GDP, of seeing Credit Increasing and expecting it to be 'Lock-Step' with GDP. But one chart proves this falsehood. We know the Housing High was Oct 2005. So check the chart from FRED for rise. Even in 2004 it was clear that Credit had risen to a Danger Zone in relation to GDP. Anywhere near 54% would be Bubble Zone and this is where we were in 2003-2004.
Bank Private Credit to GDP for United States
2011: 55.47615 Percent (Data spans from 1961 to 2011)
Annual, Not Seasonally Adjusted, DDDI01USA156NWDB, Updated: 2013-06-06
http://research.stlouisfed.org/fred2/series/DDDI01USA156NWDB
Your link:
https://www.bis.org/publ/work501.htm
Who had his thumb in his ass in 2003... Greenspan!!
By this chart we are still in Credit Bubble Territory... for the FED, the Treasury, BIS, OECD, ECB, and everyone to see.
Bank Private Credit to GDP for United States
2011: 55.47615 Percent,
http://research.stlouisfed.org/fred2/series/DDDI01USA156NWDB (Credit to GDP)
But this one looks worse (Delinked to Deposits? Bubble 1996, 1998, 1999):
Private Credit by Deposit Money Banks and Other Financial Institutions to GDP for United States, 2011: 189.51640 Percent, DDDI12USA156NWDB,
http://research.stlouisfed.org/fred2/series/DDDI12USA156NWDB
Treasury, Jack Lew
SEC, Mary Jo White
CFTC, Timothy Massad
Fed, Janet Yellen
OCC, Thomas J. Curry
CFPB, Richard Cordray
FDIC, Martin Gruenberg
FHFA, Mel Watt
NCUA, Debbie Matz
Insurance, S. Roy Woodall, Jr.
Believe Household Debt is now $14 Trillion, so FRED Data is actually not yet up to date... So not only does this chart show nearly Exponential Credit Growth, but after a little leveling out it is NOW increasing again. (population Growth & Compensation have to be compared) Clearly chart shows Bubble.
Households and Nonprofit Organizations; Credit Market Instruments; Liability, Level
2014:Q4: 13,496.88 Billions of Dollars
http://research.stlouisfed.org/fred2/series/CMDEBT
Total Population: All Ages including Armed Forces Overseas
2015-04: 320,887 Thousands
http://research.stlouisfed.org/fred2/series/POP
Compensation of employees: Wages and salaries
2015:Q1: 7,663.4 Billions of Dollars
http://research.stlouisfed.org/fred2/series/A576RC1Q027SBEA
Here is another big bubble, jumped 8% in Financial Crisis as the USA Surrendered Sovereignty:
Federal Debt Held by Foreign & International Investors as Percent of Gross Domestic Product, 2014:Q4: 34.75940 Percent of GDP, Quarterly, Seasonally Adjusted, HBFIGDQ188S, Updated: 2015-03-27
http://research.stlouisfed.org/fred2/series/HBFIGDQ188S
This Report is the one of the first of many to come, which are Beginning to Acknowledge this Simple Mathematical Imperative:
GROSS DEBT/NET GDP.
It CANNOT be overcome.
As an analogy, all the "Measures" being employed to overcome it and/or attempt to ignore it, are akin to Pouring Sand into a Transmission; except the Sand is Ordinary People, or the 99 %.
This is in actuality the true Crux of the Countless Seemingly Unrelated stories Worldwide reflecting Growing Unrest and Discontent: The Sand.
Unfortunately this Report, like the literally TENS OF THOUSANDS of pages on so-called "ECONOMICS", it is Meaningless Talk and Fancy Calculations for what is Succinctly Described in that one line.
Upton Sinclair comes to Mind in this regard.
Because that DEBT is held by MYRIAD PARTIES WORLDWIDE and IMBUED in all aspects of the WORLD FINANCIAL STRUCTURE, there can only be a DISORDERLY AND DESTRUCTIVE UNWIND.
HUMAN NATURE Guarantees it:
Self-Interest Cannot be Collectivized.
Most Especially when it comes to Money.
like it. pithy and on-point.
And we'd quite like our net interest margin back... thanks.
too late motherfuckers ...