Bank Failures

Bill Blain Finds A Conspiracy Theory Amid Europe's Bank Failures

"I so love conspiracy theories early on a Wednesday – the FT article wonders where all Popular’s money and collateral went? A bank with a net asset value of €10.8 bln in April 2016 was worth – 2bln in June 2017? There is even a suggestion an ambitious Spanish Finance Minister and regulators keen to test their powers and garner top jobs in Brussels forced the pace towards the gallows."

The Crash Of 1929: "Somewhere, Deep Down, They Knew The Party Was Over"

"...people believed that everything was going to be great always, always...It was this nature of mass illusion. Prices were going up, people bought... I would say that practically all the financial journals were on the take... They knew the game was rigged, but maybe next time, they could beat the system...Everything was not fine that spring with the American economy."

Bill Blain: "Forget 'Super Thursday', Today Is About Central Banks"

"Despite the noise about tighter policy, the reality is global recovery remains lethargic and thin. It’s easy to argue the new normal economic reality does not require aggressive monetary policy – low rates and low inflation for ever! Today we have the Fed and the ECB in the frame. Both are likely to defuse their respective ticking taper/tightening bombs."

Spanish Banking Crisis Spreads As Banco Popular Credit Curve Inverts

Having told its employees "don't panic" over the weekend (at the crashing stock and bond prices of Spain's 6th largest bank), it appears investors are ignoring that message as Banco Popular's credit curve has inverted for the first time since 2012 in the biggest red flag yet that Spain's banking crisis is systemic and about to test the EU's bail-in laws.

Contagion Fears Rise In Aftermath Of Home Capital Group Collapse

“The probability has gone from infinitesimal to possible -- unlikely, but possible,” said Hall, chief investment officer of the Calgary-based money manager, in an interview Saturday. “If depositors or bondholders start to lose faith in their banks, well then that becomes systemic.”