Tag Archive: Banking

Fed’s Asset Bubbles Now At The Mercy Of The Rest Of The World’s Central Bankers

2017-09-23

"Like watching paint dry," is how The Fed describes the beginning of the end of its experiment with massively inflating its balance sheet to save the world. As former fund manager Richard Breslow notes, however, Yellen's decision today means the risk-suppression boot is on the other foot (or feet) of The SNB, The ECB, and The BoJ; as he writes, "have no fear, The SNB knows what it's doing."

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Swiss Banks Paid Out €1 Billion In Negative Interest Rates In The First Half

2017-08-01

by Tyler Durden

2017-08-01

Investment Structure at the end of Q2 2017

Overnight, the Swiss National Bank disclosed the composition and breakdown of its FX reserves as of June 30. There were no notable changes, as the central bank kept most of its asset allocations unchanged from the previous quarter, with equities, government bonds and "other bonds", at 20%, 68% and 12% respectively. There were also no shifts in the currency composition as shown in the table below.

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Necessity is the Mother of Invention – Retirees Desperate Reach for Yield

2017-06-10

by Eugen von Böhm Bawerk

2017-06-10

Ben Bernanke’s creativity inspired a generation of economists and central bankers. QE, ZIRP and NIRP established a new class of economics that is mathematically sound but practically disastrous. Billions of dollars were transferred from savers to investors to boost the economy, but the wizards of quant forgot that something has to give. In this case, it was the formation of a pension crisis that threatens the golden years of millions of retirees...

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How The US Government Let A Giant Bank Pin A Scandal On A Former Employee

2017-05-12

by Tyler Durden

2017-05-12

The following is an excerpt from David Enrich's nonfiction financial and legal thriller The Spider Network: The Wild Story of a Math Genius, a Gang of Backstabbing Bankers, and One of the Greatest Scams in Financial History. (Read part of the prologue here; another excerpt can be found here) This excerpt takes place shortly after the accused mastermind of the Libor scandal, Tom Hayes, is fired from his job at Citigroup, kicking government...

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A Problem Emerges: Central Banks Injected A Record $1 Trillion In 2017… It’s Not Enough

2017-05-11

by Tyler Durden

2017-05-11

Aggregate Balance Sheet Of Large Central Banks, 2000 - 2017

Two weeks ago Bank of America caused a stir when it calculated that central banks (mostly the ECB & BoJ) have bought $1 trillion of financial assets just in the first four months of 2017, which amounts to $3.6 trillion annualized, "the largest CB buying on record."

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To The Asian ‘Dollar’, And Then What?

2017-04-27

by Jeffrey P. Snider

2017-04-27

TIC - US Banking Data Claims On Foreigners, February 1979 - February 2017

The Bretton Woods system was intentionally set up to funnel monetary convertibility through official channels. The primary characteristic of any true gold standard is that any person who wishes can change paper claims into hard money. It was as much true in any one country as between those bound by the same legal framework (property).

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Where There’s Smoke…

2017-04-25

by Tyler Durden

2017-04-25

Evolution of Atlanta Fed GDP, December 2016 - April 2017

Central banks around the world have colluded, if not conspired, to elevate and prop up financial asset prices. Here we'll present the data and evidence that they've not only done so, but gone too far. When we discuss elevated financial asset prices we really are talking about everything; we're talking not just about the sky-high prices of stocks and bonds, but also of the trillions of dollars’ worth of derivatives that are linked to them, as well...

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We Need To Define The ‘Shadows’, And All Parts of Them; or, ‘Rising Dollar’ Kills Another Recovery Narrative

2017-04-07

by Jeffrey P. Snider

2017-04-07

JP Morgan’s CEO Jamie Dimon caused a stir yesterday with his 45-page annual letter to shareholders. The phrase that gained him so much widespread attention was, “there is something wrong with the US.” Dimon mentioned secular stagnation and correctly surmised it was the right idea if for the wrong reasons. He then gave his own which included a litany of globalist agenda items, including not enough access to mortgages.

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Credit Suisse Offices Raided In Multiple Tax Probes: Gold Bars, Paintings, Jewelry Seized

2017-04-01

by Tyler Durden

2017-04-01

Credit Suisse has confirmed that the Swiss bank, some of its employees and hundreds of account holders are the subjects of a major tax evasion probe launched in UK, France, Australia, Germany and the Netherlands, setting back Swiss attempts to clean up its image as a haven for tax evaders.

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Not Recession, Systemic Rupture – Again

2017-02-25

by Jeffrey P. Snider

2017-02-25

Pyramid - Total US Gold Stock, January 2017

For the very few in the mainstream of economics who venture further back in history than October 1929, they typically still don’t go much last April 1925. And when they do, it is only to further bash the gold standard for its presumed role in creating the conditions for 1929. The Brits under guidance of Winston Churchill made a grave mistake, one from which gold advocates could never recover given what followed.

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Video: Interest Rate Differentials Increasing Financial Market Leverage To Unsustainable Levels

2017-02-25

by EconMatters

2017-02-25

We discuss the rate differentials between Switzerland, Britain, Europe, Japan and the United States and how this Developed Financial Markets carry trade is incentivizing excessive risk taking with tremendous leverage and destabilizing the entire financial system in the process in this video.

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A New Frame Of Reference Is Really All That Is Necessary To Start With

2017-02-15

by Jeffrey P. Snider

2017-02-15

Evolution Fractional Lending Bank Reserves 1900 - 1921

In the middle of 1919, the United States was beset by a great many imbalances. Having just conducted a wartime economy, almost everything before then had been absorbed by the World War I effort. With fiscal restraint subsumed by national emergency, inflation was the central condition. Given that the Federal Reserve was by then merely a few years old, no one was quite sure what to do about it.

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Chinese Philosopher Kings, Losing their Yuan FX Religion?

2017-01-04

by Eugen von Böhm Bawerk

2017-01-04

Two Stages of Chinese Monetary Policy - Inflationary Deflationary

It took a while, but the world are slowly coming to grips with the simple fact that the red-suzerains in Beijing are not the infallible leaders en route to a new superior economic model as they thought they were. All the craze that emanated from the spurious work of Joshua Cooper Ramo, which eventually led to works like “How China’s Authoritarian Model Will Dominate the Twenty-First Century,” are slowly catching up to reality.

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How to Invest in the New World Order

2016-12-26

by Eugen von Böhm Bawerk

2016-12-26

In our latest Toward a New World Order, Part III we ended by promising to look closer at investment implications from the political and economic shift we currently find ourselves in; and that story must begin with the dollar.

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