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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 [...] George Soros Warns “Central Banks Are Creating Financial Instability” While the crisis in Europe is first in Goerge Soros’ mind because it is the “hottest” risk flare currently, his biggest concern in what he calls the “disarray in global cooperation,” or what we would call ‘dueling central banks’. “The almost universal adaptation of quantitative easing,” worries him and he notes that “Europe is the last bastion of orthodoxy,” in this regard [...] Jamie Dimon is speaking at the South Florida Economic Summit right now and Bloomberg TV is airing his talk.
The JP Morgan CEO hasn’t said anything super surprising —he got to the “widest, deepest, most liquid capital markets” quote and also reiterated his bank’s commitment to Europe — but he did say something in passing that piqued Business Insider’s interest. It was about a “secret money room” JP Morgan. Here’s what he said: “We have a great [...] The Interior Department on Friday issued a final plan to close 1.6 million acres of federal land in the West originally slated for oil shale development. The proposed plan would fence off a majority of the initial blueprint laid out in the final days of the George W. Bush administration. It faces a 30-day protest period and a 60-day process to ensure it is consistent with local and state policies. After [...] Former JPMorgan CEO Bill Harrison appeared on Bloomberg Television’s “Market Makers” with Erik Schatzker and Stephanie Ruhle today, where he said, “I wouldn’t penalize” Jamie Dimon over the bank’s $5.8 billion loss in its CIO unit. Harrison said, “That might be a controversial statement. I think Jamie is doing a great job.” Harrison also said that banks shouldn’t split their chairman and CEO roles: “Absolutely not, I feel very strongly about [...] Former Reagan Budget Director David Stockman on Squawk Box last Monday, 3 days before Bernanke unleashed $40 billion in additional monthly Qeternity.
“Ron Paul is the only one who is right about the Fed, and the Fed is the heart of the problem.” “Politicians will never make the tough decisions to solve the debt crisis as long as the Fed keeps printing free money.” “Ron Paul is the only one who is right about the Fed, and the [...] by Phoenix Capital Research
So… we’ve now got both the ECB AND the US Federal Reserve promising to do “open ended” purchases of various bonds. If this doesn’t make it clear, point blank that the Central Banks don’t have a CLUE how to solve the Financial Crisis this is it. Forget math, forget fancy economic terms. Let’s just look at this situation using common sense. The ECB, combined with the IMF, couldn’t fix [...] FRANKFURT, Aug. 13 (Xinhua) — European banks remain under substantial pressure on many operating fronts, a Deutsche Bank report said on Monday. Revenue declines seem to become entrenched due to volatile capital markets and the low interest rate environment and initial improvements on the cost side have not nearly been able to compensate for those reduced earnings, said the report. The report pointed out that the 20 largest banks in Europe reported [...] We previously observed that the US Treasury, under advisement of TBAC Chairman Matt Zames, who currently runs JPM’s CIO group in the aftermath of the London #FailWhale and who will become the next JPM CEO after Jamie Dimon decides he has had enough of competing with the Fed over just who it is that run the US capital markets, would soon commence issuing Floating Rate bonds (here andhere) as well as [...] “Under the new rules, which came into effect Friday, the China Securities Regulatory Commission said it had lowered minimum qualification requirement and simplified the approval process for applicants under the Qualified Foreign Institutional Investors program, the primary program for foreign investors to enter China’s capital markets.” http://online.wsj.com/article/SB10000872396390443931404577554114071022768.html?mod=rss_whats_news_us_business
FRANKFURT (MarketWatch) — European Central Bank President Mario Draghi indicated that the institution is ready to resume purchases of Spanish and Italian government bonds in a bid to bring down borrowing costs and ensure the survival of the euro. “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro,” Draghi said, at an investor conference in London. “And believe me, it will be enough.”
Meredith Whitney was just on CNBC’s Closing Bell talking about Sandy Weill’s shock announcement that he believes the banks should be broken u. You won’t be surprised to know that the famed research analyst agrees with Weill — she thinks the supermarket business model for banking simply doesn’t work, and that a reconstruction is in order. But that doesn’t mean she thinks that the government needs to take a hacksaw to The Street. Quite [...] Japan, England, Europe, America, and other places all have extremely serious debt problems – both in the private and public sectors. We have already seen coordinated activity between the Fed Res and the ECB in doing very large swaps. If one central bank does a big QE then their currency falls and makes their exports more competitive. Also, money will tend to flee to what are perceived as safe havens. [...] From Bruce Krasting: Holy smokes! The EU technocrats have finally pulled out the big guns! The agreement on Friday was to take the incredibly bold step of avoiding subordination in the Spanish bond market. The money needed for the busted Spanish banks will now be made available directly from Brussels with few strings attached. Wow! What a breakthrough! Global markets have taken a quick look at what has been offered up by [...] Hours ago, in addition to making Cypriot sovereign bonds no longer eligible as collateral at the ECB, the European Central Bank also announced something that received less attention, namely that itsbalance sheet rose by €31 billion in the past week (due to an increase in the MRO) to a new all time record high of €3.058 trillion. In other words, even as the Fed’s balance sheet continues to be flat, or is even [...] Hours ago, in addition to making Cypriot sovereign bonds no longer eligible as collateral at the ECB, the European Central Bank also announced something that received less attention, namely that itsbalance sheet rose by €31 billion in the past week (due to an increase in the MRO) to a new all time record high of €3.058 trillion. In other words, even as the Fed’s balance sheet continues to be flat, or is even [...] If there is one bank report that Obama wishes is absolutely wrong it is the following note from Deutsche Bank’s Jim Reid (definitely not part of the bank’s laughable Trinity Of Perma Bull consisting of Bianco, Chadha and, of course, La Vorgna) who, looking at the timing of business cycles, makes the following ominous, for both the economy and Obama’s reelection chances, prediction: “If this US cycle is of completely [...] Goldman downgraded Morgan Stanley based on high capital markets exposure and implications from the Moody’s downgrade. Price target cut to $16 from $20. http://finance.yahoo.com/news/morgan-stanley-downgraded-neutral-conviction-103002155.html Central banks hold 30% of global GDP “Bank for International Settlements reports that world’s central banks are holding £11tn after purchasing government bonds This is double the level of ten years ago, according to the latest annual report from the Bank for International Settlements. The [...] Be afraid: Some in U.S. see shades of 2008 in euro crisis “They see a fractured Europe fiddling in the near term, attempting to seal one fissure as another larger one appears while they talk about a five-to-10-year timeframe for real solutions, such as a more fiscally integrated euro zone. They see investors who want solutions in the next few weeks and months or else nations like Spain and Italy could [...]
There simply isn’t enough money under current bail-out arrangements to rescue Italy should it require help. And markets are once more preparing for that eventuality.
Rome became a fully paid-up member of the 6pc-plus club on Tuesday as its cost of borrowing jumped to 6.14pc. Its predicament is different from Spain’s and Spain’s was different from Greece’s. But that didn’t stop Spain needing financial aid.
Italy’s budget deficit is not the primary [...] S&P warns of risk if Spain rescue comes from new fund “Standard & Poor’s warned Monday that holders of Spain’s bonds could be at risk if the nation ends up needing more money than now expected from a new European bailout fund. |
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A Few Things That Average Joes Should Understand About The Stock Market
Charles Hugh Smith, Of Two Minds
Common sense leads us to the “obvious” conclusion that the U.S. stock market is a rigged skimming operation that is essentially a form of legalized, officially sanctioned fraud.
Active traders and professional money managers already know how the U.S. stock market actually works, but Joe and Jane Citizen, whose pensions generally depend on the market in some way, typically do not. This entry is for them.
Today’s financial [...]