Bank Failures

Tyler Durden's picture

Commodity Trading Giants Unleash Liquidity Scramble, Issue Record Amounts Of Secured Debt

In a furious race to shore up as much liquidity as possible, Glencore - which a month ago announced a dramatic deleveraging plan - and its peers have been quietly scrambling to raise billions in secured funding. Case in point none other than Glencore's biggest competitor and the largest independent oil trader in the world, Swiss-based, Dutch-owned Vitol Group, whose Swiss unit Vitol SA earlier today raised a record $8 billion in loans.

Tyler Durden's picture

10 Things Every Economist Should Know About The Gold Standard

At the risk of sounding like a broken record we'd like to say a bit more about economists' tendency to get their monetary history wrong; in particular, the common myths about the gold standard. If there's one monetary history topic that tends to get handled especially sloppily by monetary economists, not to mention other sorts, this is it. Sure, the gold standard was hardly perfect, and gold bugs themselves sometimes make silly claims about their favorite former monetary standard. But these things don't excuse the errors many economists commit in their eagerness to find fault with that "barbarous relic." The point, in other words, isn't to make a pitch for gold.  It's to make a pitch for something - anything - that's better than our present, lousy money.

Tyler Durden's picture

Austrian Bad Bank "Black Swan" Bail-In Is Unconstitutional, Austria Declares

In a key ruling that may have implications far beyond Austria's borders, the country's constitutional court has struck down a bail-in that would have imposed losses totaling some €800 million on junior Heta bondholders.

Capitalist Exploits's picture

Can You Hear the Fat Lady Singing? - Part III

The unwinding of the US dollar carry trade will be particularly severely felt where leverage is highest!

Tyler Durden's picture

Credit Deflation & Gold

So having acquired substantial quantities of gold for itself and having also ensured it is widely held by its public, the Chinese government is arguably in a more compelling position to encourage a gold revaluation as a means of stabilising her economy in a credit crisis than America was eighty years ago. It will be China's only option, and if the government doesn't go for it, China's middle classes certainly will. This simple fact could override all the geostrategic considerations upon which China-watchers have tended to focus. A gold revaluation would be presented to the world as bound up with China's domestic economic problems, instead of an act aimed at undermining the dollar's reserve status: a solution that is less confrontational than outright disagreement with Western central banks over gold's role in the international monetary order.

Tyler Durden's picture

The Latest Out Of Europe: "Pretty Steady Level Of Shittiness"

Me: How are the talks going?
EU source: "Shitty."
Me: "Getting more shitty or less?"
Source: "Pretty steady level of shittiness

Tyler Durden's picture

What A Cashless Society Would Look Like

“A depression is coming? Let’s put interest rates at zero. The economy is still in trouble? Let’s have the central bank print trillions in new securities. The banks are not lending? Let’s change the accounting rules and offer government guarantees and funds. People are still not spending? Let’s have negative interest rates. The economy is still in the tank? LET’S BAN CASH TRANSACTIONS!”

A cashless society is promising to have very tangible costs to our liberties and future prosperity.

GoldCore's picture

European Bank Bail-ins? Banks 'As Vulnerable Today' As Before 2008 Crisis

New research shows that European banks are as likely to fail today as they were preceding the global economic crash 7 years ago. Bail-ins are now the rule.

Tyler Durden's picture

Overview Of Our Energy Modeling Problem

We live in a world with limits, yet our economy needs growth. How can we expect this scenario to play out?

Tyler Durden's picture

"China Has A Massive Debt Problem", And Why It Is About Get Much Massiver

"China has a $28 trillion problem. That’s the country’s total government, corporate and household debt load as of mid-2014... equal to 282 percent of the country’s total annual economic output," Bloomberg notes, adding that efforts to deleverage this massive debt burden aren't compatible with the measures Beijing needs to take to boost economic growth. But if you thought the debt problem was bad now, it's going to get worse because as Reuters notes, China is about to activate the ABS machine.

GoldCore's picture

Greek Debt Crisis Coming To Head - Contagion?

If and when Greece finally defaults it will be able to place the blame squarely at the feet of the European elites. If an agreement has not been reached by Friday when the Eurogroup of Finance Ministers meet in Riga it is quite likely that Greece will default.

GoldCore's picture

Bank Deposits No Longer Guaranteed By Austrian Government

Emergency legislation can be drawn up over-night. While Austria may be the first in enacting bail-in legislation there is no guarantee that savers, particularly in the peripheral nations, will receive any indication that their deposits may be at risk.

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