Category: Credit Crisis 2012
The analysis published under this category are as follows.
Thursday, November 29, 2012
Back to Basics: A Planned Financial Crisis? / Stock-Markets / Credit Crisis 2012
By: DeviantInvestor
Franklin D. Roosevelt, the 32nd president of the United States said, “In politics, nothing happens by accident. If it happens, you can bet it was planned that way.”
Monday, November 26, 2012
Shadow Banking: The Next Financial Crisis Landmine / Stock-Markets / Credit Crisis 2012
By: Alasdair_Macleod
The Federal Reserve Board originally led us to believe that it was necessary to expand money supply through quantitative easing to offset the contraction of bank credit. Bank credit is no longer contracting, and indeed was already expanding when QE3 was introduced. This objective is now being satisfied as illustrated in the chart below:
Read full article... Read full article...
Tuesday, November 20, 2012
The Bankers Lost - 2012 Debt Tipping Point Results / Stock-Markets / Credit Crisis 2012
By: Darryl_R_Schoon
The bankers’ bet that sufficient credit can reverse an economic contraction is no longer on the table. This does not mean central bank credit will tighten. Just the opposite will happen. Monetary easing will continue until the very end. Central bankers are trapped. The end game is now underway.
It is highly unlikely the Mayan predictions of the end of the world referred to the bankers’ world of credit and debt. Nonetheless, with only one month remaining until December 21, 2012—the end date of the Mayan 5,125 year Mesoamerican calendar—the concomitant end of the bankers’ 300 year ponzi-scheme of credit and debt should not be dismissed as mere coincidence.
Read full article... Read full article...
Friday, November 16, 2012
THE Biggest Story in Finance That No One Is Talking About / Stock-Markets / Credit Crisis 2012
By: Graham_Summers
Modern financial theory dictates that sovereign bonds are the most “risk free” assets in the financial system (equity, municipal bond, corporate bonds, and the like are all below sovereign bonds in terms of risk profile). The reason for this is because it is far more likely for a company to go belly up than a country.
Friday, November 16, 2012
What Really Happened When Lehman Failed… And Why Spain Will Be Much Worse / Stock-Markets / Credit Crisis 2012
By: Graham_Summers
Countless pages have been written about why Lehman caused the system to almost implode. However, the reality is that Lehman nearly took down the entire financial system for two reasons:
1) Lehman’s $155 billion worth of bonds were used as collateral in hundreds of billions of Dollars’ worth of trades.
2) Lehman’s 8,000 clients who were all using Lehman to make trades saw the collateral that they had placed with the firm (to backstop their portfolios) frozen.
Read full article... Read full article...
Wednesday, November 14, 2012
Italian Prosecutor Charges Fitch and S&P Employees With Culpable Incompetence / Interest-Rates / Credit Crisis 2012
By: Andrew_Butter
I noticed that the public prosecutor in some remote corner of Italy is attempting to get a clutch of hapless employees of S&P and Fitch charged with…well I‘m not quite sure what? Public disorder…incompetence…economic terrorism…driving whilst under the influence of America?Read full article... Read full article...
Monday, November 12, 2012
The Fiscal Cliff is a Mole Hill Compared TAG Program Expiry / Stock-Markets / Credit Crisis 2012
By: Money_Morning
Shah Gilani writes:
Everyone is afraid of falling off the "fiscal cliff." But there's another dangerous countdown clock about hit to zero.
And no one is talking about it, even though it will spell even more financial problems for us all.
At midnight on December 31, 2012, the Transaction Account Guarantee (TAG) program will expire.
Read full article... Read full article...
Saturday, November 10, 2012
Investors Misled by Credit Ratings Agency / Politics / Credit Crisis 2012
By: InvestmentContrarian
Sasha Cekerevac writes: In what will most likely be a landmark ruling, Australia’s federal court has ruled that one of the world’s leading credit ratings agencies Standard & Poor’s (S&P) misled investors by issuing a AAA rating, its safest rating, to securities that were extremely complex and risky, and that ultimately lost most of their value.
Thursday, November 08, 2012
The Stage Has Been Set For Another Credit Crisis / Interest-Rates / Credit Crisis 2012
By: Money_Morning
Shah Gilani writes: If you think yesterday's market action was something to worry about, you ain't seen nothing yet.
President Barack Obama getting re-elected sets the stage for another credit crisis.
Read full article... Read full article...
Tuesday, October 23, 2012
The World’s Largest, Most Toxic Banking System… / Stock-Markets / Credit Crisis 2012
By: Graham_Summers
As noted earlier in yesterday’s article, the entire European banking and corporate system is over-burdened with debt.
Germany sports a real Debt to GDP of over 200% (this from the former head of the Bundesbank), and the rest of Europe is in even worse shape.
Read full article... Read full article...
Thursday, October 18, 2012
QE Infinity Won't Work, What the Banks Are Really Afraid Of ... / Stock-Markets / Credit Crisis 2012
By: Money_Morning
Keith Fitz-Gerald writes: Dallas Federal Reserve President Richard Fisher recently offered a stunning assessment about our policymaking central bankers down in Washington.
They're winging it.
In a talk before a Harvard Club audience, Fisher presented a candid assessment about all the levers the Fed has been pulling in the aftermath of the 2008 financial crisis. And that includes the recently announced QE3.
Monday, October 08, 2012
How Spain Could Take Down the Entire EU Banking System / Interest-Rates / Credit Crisis 2012
By: Graham_Summers
Spain was already experiencing a banking crisis as well as a sovereign crisis. It’s now on the verge of a constitutional crisis (as well as its ongoing sovereign and banking crises).
Wednesday, September 26, 2012
The Fed Is Trapped, Gold Is The Exit / Stock-Markets / Credit Crisis 2012
By: Darryl_R_Schoon
47% of US investors dependent on the Fed believe they are victimized by government, who believe they are entitled to enough liquidity to profit when risk is laid-off onto others, to society, to you-name-it…
On September 13th, the Fed announced QE3, a policy of open-ended bond purchases which would add $1 trillion annually to the Fed’s balance sheet. The Fed’s decision to provide liquidity ad infinitum, i.e. QE etc, was framed in reasonable and carefully chosen language:
Read full article... Read full article...
Monday, September 24, 2012
Asian Financial Crisis Lessons, Can Malaysia’s Capital Controls be Copied? / Stock-Markets / Credit Crisis 2012
By: Sam_Chee_Kong
The Asian Financial Crisis in 1997 came as a surprise and caught most people by surprise not only by the speed but also the severity of the crisis. At that time the Asian Economic Miracle was the buzzword then and the Asian Tiger economies are at their peak not only in the performance of their export oriented economies but also the stocks and properties market. To accommodate the shortage of funds needed to boost their economies, their governments embark on a ‘loose money’ monetary policies regime.
Monday, September 10, 2012
Central bankers and politicians are running out of ideas / Politics / Credit Crisis 2012
By: Alasdair_Macleod
My father, who at one time was an education minister in the Kenyan government, used to tell a story of a long-forgotten crisis when the leaders in the educational establishment could only turn to him and ask: ”minister, what shall we do?” The point of the story is that these were all highly qualified senior academics, while my father had left school at 16 with no qualifications at all. It amused him.
Read full article... Read full article...