The EU reportedly has agreed with “overwhelming majority” that from 2016, savers must bleed event of bank failure. Deposits over 100000 euros are then gone. EU Law Committee: Cyprus was a model.
The Legal Affairs of the European Parliament has reportedly expressed yesterday evening with “overwhelming majority” for expropriating savings of about 100000 euros, if a bank goes bankrupt. An appropriate legislative proposal agreed to the Legal Affairs of the European Parliament. Balances below 100000 [...]
from MarketWatch:
Bonds are “a terrible investment” right now, Berkshire Hathaway BRK.A +1.27% Chairman and Chief Executive Warren Buffett told CNBC Monday. He recommended holding a comfortable amount of cash but otherwise investing in “productive assets”, and called having a set asset-allocation strategy “silly.” Bond prices are artificial right now given the Federal Reserve’s purchases of $85 billion a month, “and when that changes, people could lose a lot of money.”
http://www.marketwatch.com/story/buffett-on-cnbc-warns-of-looming-big-bond-losses-2013-05-06?dist=beforebell
Telegraph Excerpt and Link, by [...]
by Ambrose Evans-Pritchard, The Telegraph:
The World Gold Council has advised Italy to deploy its 2,000 tonnes of gold to break free of EMU austerity dictates.
By using the reserves – the world’s fourth largest – to collateralise the first chunk of any losses for bondholders, Italy could raise €400bn or so on the capital markets and determine its own future for a while.
Italy did this in 1974 when it borrowed $2bn from [...]
Spanish banks post multi-billion euro losses over the weekend!!! Spain to revise 2013 GDP growth forecast from -0.5% to -1.0%!!!
Russian Market‏@russian_market41 min
Monte Paschi says lost “a few billions” in deposits after February scandal. #Italy
Russian Market‏@russian_market35 min
#QUICKreminder Spanish banks post multi-billion euro losses over the weekend.
https://twitter.com/russian_market/status/318737825086468096/photo/1
BRICS dumping euro amid simmering EU banking crisis
Brussels has been forced to eat a generous slice of humble pie: A massive sell-off of the euro is [...]
China Local Government Debt to Reach 16.3 trillion Yuan in 2013
“As China’s local governments cash in on real estate development, they’re amassing a lot of debt at the same time.
Huatai Securities, a major Chinese securities broker says local government debt could reach 16.3 trillion yuan this year. That’s around $2.5 trillion US dollars, and almost 30% of China’s GDP.”
“The threat of a banking collapse is very real concern for the [...]
Small lender Banco CEISS, one of Spain’s banks that could end up in state hands, posted a 2.5-billion-euro ($3.21 billion) 2012 loss on Wednesday because of writedowns on soured property loans and assets.
http://www.cnbc.com/id/100595655
https://twitter.com/russian_market/status/317036240232935424/photo/1
Three small Spanish banks post multi-billion euro losses”
http://www.euronews.com/business-newswires/1871118-three-small-spanish-banks-post-multi-billion-euro-losses/
Depositors maybe ok in Spain’s bank restructuring, but Investors will suffer HUGE losses–
Spain Brings the Pain to Bank Investors
…The restructuring terms announced by the FROB will impose losses of up to 61% [...]
Athanasios Orphanides, the former governor of the Central Bank of Cyprus, told Tom Keene and Sara Eisen on “Bloomberg Surveillance” today that Cyprus “will face a deeper recession going forward.”
Orphanides also said, “The other periphery countries should thank the Cypriot parliament for rejecting the earlier plan that was advanced about 10 days ago that essentially asked for the confiscation of deposits.”
@BLOOMBERG SURVEILLANCE
Orphanides on whether the leadership of Cyprus has the [...]
London Gold Market Report
from Ben Traynor, BullionVault
Monday 25 March 2013, 08:45 EST
Gold Back Below $1600 after Cyprus Deal, “Could Test Low at $1522″
U.S. DOLLAR gold prices fell back below $1600 per ounce Monday morning in London, falling back towards where they started last week, as stocks and commodities gained after news that Cyprus has agreed a bailout deal.
“We expect gold to move sideways this week with, however, a tendency for lower [...]
S&P Warns of ‘Socially Explosive’ Situation in Eurozone
Standard and Poor’s sees a high risk that Spain, Italy, Portugal and France will not be able to carry through necessary reforms as the unemployed become less willing to put up with austerity, S&P’s Germany head Torsten Hinrichs told a newspaper.
“The high unemployment in Spain, Italy and France is socially explosive,” Hinrichs was quoted as saying in Monday’s Neue Osnabrücker Zeitung.
“There has to [...]
SACRAMENTO (CBS13) – Fallout from the fiscal cliff is causing troubles for tax preparers, which means it could take longer to get your tax return this year.
When Jim Rogers starts his day at work, exciting is not what he’s expecting. For 40 years, he has worked as an accountantfiling taxes for other people.
“This is the worst year I’ve ever had,” said Rogers.
This year hasn’t only been boring, but it’s been brutally frustrating.
“I [...]
By Ellen Brown
February 15, 2013
In the 2012 edition of Occupy Money released last week, Professor Margrit Kennedy writes that a stunning 35% to 40% of everything we buy goes to interest. This interest goes to bankers, financiers, and bondholders, who take a 35% to 40% cut of our GDP. That helps explain how wealth is systematically transferred from Main Street to Wall Street. The rich get progressively richer at the [...]
by Pater Tenebrarum, Acting-Man.com:
Contraction ‘Worse than Expected’
Once again economic forecasters are ‘surprised’ by the depths of Spain’s recession. They really shouldn’t be. After all, one of the most egregious housing bubbles of all time has burst in Spain. The bubble has produced malinvestment on a truly breathtaking scale. Moreover, it has left the banking system in tatters. If not for the doctrine that all banks including their shareholders and bondholders must [...]
How Iceland overthrew the banks.
Liz Claman interviews Iceland President Olaf Grimsson at Davos.
“We didn’t follow the traditional prevailing orthodoxies. Unlike the U.S. and EU, we forced bank bondholders to take losses. And the end result four years later is that Iceland is enjoying progress and recovery. Europe should let banks that are managed irresponsibly go bankrupt.”
—
Meanwhile earlier today:
Iceland Wins Court Ruling Over Icesave Bank Repayments To Britain, Netherlands…
Here’s a great story [...]
From Bloomberg:
The United States of America isn’t going to default on its debt, even if Congress doesn’t increase the statutory borrowing authority in the next couple of months. Everyone in Washington knows, or should know, this. Any assertions to the contrary are tantamount to — perish the thought! — playing politics with the debt ceiling.
This is the second time in less than two years that the nation finds itself at [...]
London Gold Market Report
from Ben Traynor
BullionVault
Monday 10 December 2012, 07:30 EST
Gold “Respecting Uptrend”, Berlusconi Speaks of “Desperation” at Returning to Public Life after Monti Announces Resignation Plan
SPOT MARKET gold bullion prices rose to one-week highs above $1710 an ounce Monday morning, while European stock markets fell following news that Italy’s prime minister plans to resign.
“Gold continues to consolidate its gains from August-September, and is still respecting its long term uptrend,” says [...]
London Gold Market Report
from Adrian Ash
BullionVault
Thursday 6 Dec, 08:00 EST
“Mystery Gold Seller” Spied in Asia as Investment Banks Argue Over 2013 Outlook
The GOLD PRICE traded in a narrow range around $1691 per ounce Thursday morning in London, rising slightly from yesterday’s 1-month low.
Asian and European stock markets also ticked higher, as did US Treasury bonds.
Silver rallied to $32.78 per ounce after losing nearly 3% this week so far, but commodities [...]
London Gold Market Report
from Ben Traynor
BullionVault
Monday 3 December 2012, 07:30 EST
Gold “Remains in Long Run Uptrend”, Euro Gains After Merkel Comments on Greece
SPOT MARKET gold prices fell back below $1715 an ounce Monday morning in London, more-or-less in line with where they were two weeks ago after failing to hold gains made during Asian trading.
“Gold is still following its long term uptrend from 2008 lows,” say technical analysts at Scotiabank, [...]
Argentina is at risk of defaulting on $24bn (£15bn) of debt after hedge funds were awarded more than $1.3bn by a US court, a move which its economy minister called “legal colonialism”.
by Gary White, The Telegraph:
“All we need now is for [Judge Thomas] Griesa to send us the Fifth Fleet,” said Hernán Lorenzino, Agentina’s economy minister.
However, New York District Court Judge Grisa was firm. “Argentina owes this and owes it now,” [...]
Debt Crisis Solutions are Leaving Investors Behind
by Ben Traynor
BullionVault
Wednesday 21 November 2012
How the losses are being paid for…
IT USED TO BE taken for granted that you could put aside some money and earn enough interest to be better off than when you started.
As the world continues to struggle with the aftermath of an enormous credit boom and its subsequent bust, though, this kind of objective seems hopelessly naïve. Events in [...]
By Ellen Brown, globalresearch.ca:
In the 2012 edition of Occupy Money released this month, Professor Margrit Kennedy writes that a stunning 35% to 40% of everything we buy goes to interest. This interest goes to bankers, financiers, and bondholders, who take a 35% to 40% cut of our gross domestic product.
That helps explain how wealth is systematically transferred from Main Street to Wall Street. The rich get progressively richer at the expense of the poor, [...]
‘Unlike the U.S. and EU, we forced bank bondholders to take losses.’
Start watching at the 3-minute mark. Recorded yesterday.
Iceland’s Foreign Minister Ossur Skarphedinsson tells RT’s Marina Portnaya how his country managed to pull itself away from the financial abyss – and offers up a few pointers as to how the Eurozone can do the same.
dailybail
by Charles Hugh Smith from Of Two Minds
If You Prop Up An Artificial Economy Long Enough, Does It Become Real?
Does carefully nurturing a facade of health actually lead to health? No; all it does is perpetuate a destructive illusion.
The policy of the Status Quo since 2008 boils down to this assumption: if we prop up an artificial economy long enough, it will magically become real. This is an extraordinary assumption: that the [...]
From FT:
Tim Geithner, the US Treasury secretary, acted to shield Citigroup’s bondholders and management from accountability at the height of the financial crisis while taxpayers were left on the hook, a former US bank regulator has alleged.
Sheila Bair, who served as chairman of the Federal Deposit Insurance Corp during the crisis and its aftermath, levelled fresh attacks at Mr Geithner, the Obama administration, fellow financial regulators and bankers such as Vikram [...]
From Zero Hedge:
Remember when we said two months ago that one way or another the market will need to tumble to enforce the chain of events that lead to Spain demanding the bailout which has long been priced in, and (especially after yesterday’s violent protest) Rajoy handing in his resignation?
Well, it’s “another.”
After nearly 3 months of suspending reality, in hopes to not “rock the boat” until the U.S. presidential election, [...]
A survey of 16 of the largest institutional bondholders by Bloomberg found that 10 would not reduce their holdings if the Chancellor watered down efforts to bring the public finances under control.
The research was released as it emerged that Government borrowing for the first five months of the year was running more than 25pc over target, a revelation that prompted Nomura’s UK economist Philip Rush to warn that the Chancellor will [...]
SACRAMENTO, Calif. (AP) — One of the nation’s top credit rating agencies said Friday that it expects more municipal bankruptcies and defaults in California, the nation’s largest issuer of municipal bonds.
Moody’s Investors Service said in a report that the growing fiscal distress in many California cities was putting bondholders at risk.
The service announced that it will undertake a wide-ranging review of municipal finances in the nation’s most populous state because [...]
When Barack Obama started his Presidency, there was much discussion of how Sweden in the early 1990s had briefly nationalized and then sold off its failing banks and quickly restored its economy, while Japan had instead bailed out its failed banks’ stockholders and bondholders, and never recovered. Why is the United States copying the Japanese failure, instead of the Swedish success?
President Obama started his Presidency with the opportunity to try the [...]
Busting through the Gates of Leinster House.
—
Posted by Dr. Pitchfork
During a massive demonstration against the bank bailouts in Dublin yesterday, a group of protesters attempted to break through the gates of Leinster House, home of the Irishgovernment. Although the attempt to storm the Dáil was mostly symbolic, punches were thrown, heads were cracked and there was, indeed, blood in the streets.
The demonstrators are angry about the bailout of the major Irish banks and their bondholders. [...]
From The Burning Platform:
Have you heard the news? Auto sales are booming.
Total sales for the month of August were 1,285,202 vehicles, according to Autodata Corp, the highest monthly sales figure for any August since 2007, when 1.47 million autos were sold in the United States. Year to date auto sales have totaled 9.7 million and are on track to reach 14.5 million. Between 2006 and 2007, auto sales ranged between [...]
Wolf Richter www.testosteronepit.com
Slovenia joined the Eurozone in 2007, went on a borrowing binge that blind bond buyers eagerly made possible, dousing its two million people, or at least some of them, with riches, creating a real estate bubble that has since burst, and driving up its external debt by 110%. And in October, it may go bankrupt, admitted Prime Minister Janez Jansa this weekend. Because borrowing binges can last only so long if you can’t [...]
Many are hailing the ECB’s yet-to-be-announced bond-buying plan – expected to be detailed to the public September 6 – as a game-changer for the euro crisis.
The ECB has been unwilling to restart bond purchases of peripheral euro nations even as markets have spiraled out of control this summer, saying they violate the central bank’s governing treaties in that they amount to de facto financing of sovereign states.
Recently, however, the story has changed. The [...]
Wolf Richter www.testosteronepit.com
A hullabaloo has flared up in Germany over squashing democratic discussion on whether or not taxpayers should endlessly pay to keep Greece in the Eurozone and protect bondholders—the ECB and national central banks—from having to recognize reality on the worm-eaten Greek debt in their basements. The tools: political pressure, fake moral outrage, and ridicule. And not just in Germany. NPR announced on Sunday that only some “hardliners” in Germany [...]
washingtonsblog.com
August 25, 2012
Nobel prize winning economist Joe Stiglitz notes:
What Iceland did was right. It would have been wrong to burden future generations with the mistakes of the financial system.
Nobel prize winning economist Paul Krugman writes:
What [Iceland's recovery] demonstrated was the … case for letting creditors of private banks gone wild eat the losses.
Krugman also says:
A funny thing happened on the way to economic Armageddon: Iceland’s very desperation made conventional behavior impossible, freeing the [...]
he klaxon horn went off Friday evening for California municipal bondholders whenMoody’s credit rating service issued a report stating that the plummeting financial condition of many California counties, cities, school districts and other government agencies will soon result in large numbers of municipal bankruptcy filings. Concerned about their own potential liability for providing high ratings that encouraged conservative elderly Americans to invest in risky bonds; Moody’s announced they will undertake a [...]
Moody’s: More Calif. cities at risk of bankruptcy
“One of the nation’s top credit rating agencies will begin a wide-ranging review of municipal finances in California because of what it sees is a growing threat of increased city bankruptcies and bond defaults.
Moody’s Investors Service issued a report Friday saying that the growing fiscal distress in many cities in the nation’s most populous state was putting bond holders at risk.
It noted that [...]
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