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The day of reckoning for global total debt – total credit market debt up from $28 trillion in 2001 to $53 trillion in 2012. US consumer debt went up in last few months but largely because of giant amounts of student loan debt taken on. You have to really question what passes for financial analysis these days. One financial show was discussing the recent increase in consumer debt as something positive. [...] Ambrose Evans-Pritchard In an earthquake result, the Five Star protest movement of comedian Beppe Grillo looked likely to emerge as the biggest single party in the lower house. The scourge of bankers and corrupt elites, Mr Grillo has campaigned for a return to the lira and a restructuring of Italy’s €1.9 trillion (£1.64 trillion) public debt. The conservative bloc of ex-premier Silvio Berlusconi looked poised to win the senate, [...] Reminder: The first exit polls from the Italian election will hit some time around 9 AM ET, before US markets officially open.
The hope for World markets/the EU/Italian elites is that the center-left parties get enough votes to form a stable majority. The fear is that there will be a big surge for the conservative (Berlusconi) and populist (Beppe Grillo) movements, making a government untenable, and thus risking a backsliding of Italy’s [...] Officials in Pennsylvania’s state capital are dealing with an abysmal issue they can’t afford to fix: 41 massive sinkholes throughout the city as wide as 50 feet and as deep as a typical grave. ……………. But the city is too broke to replace many of the aging pipes and repave its roads as it deals with ongoing budget woes and the looming threat of bankruptcy, according to media reports. The first of the [...] EURO Crisis is OVER – Portugal Deficit On Track, Returns to Markets Tomorrow EURO CRISIS IS OVER PORTUGAL, IRELAND RETURN TO FINANCIAL MARKETS, DEFICITS UNDER CONTROL, GREECE DEFICIT BETTER THAN EXPECTED, SPAIN YIELDS DROPPING BIG TIME ALL EXTERNAL DEFICITS HAVE SURPLUS Eat that stupid american fearmongers! Euro didn’t brake your financial terrorists have failed ahaha You couldn’t kill us, we are returning even stronger than before!! Prepare yourselves Euro will rule, dollar will crash http://www.foxnews.com/world/2013/01/22/portugal-reduces-budget-deficit-eyes-return-to-debt-market-as-cutbacks-pay-off/ kingworldnews.com / January 12, 2013 The following is without question one of the most remarkable and powerful pieces Michael Pento has ever written for King World News. He put together this piece exclusively for KWN to warn readers about the soaring money supply and a coming collapse of currency and bond markets. Pento also stated the gold and silver bull markets are “only just beginning.” Here is Pento’s piece: “It should be clear to [...]
Beware the bond bubble in 2013, many Wall Street experts think the bond bubble may be about to burst
After three decades of declines, interest rates are near rock bottom, and many Wall Street experts think the bond bubble may be about to burst. In fact, nearly 40% of the 32 investment strategists and money managers surveyed by CNNMoney think that interest rates will begin to rise in 2013, and another 30% say [...]  Is Corporate Behavior Too Bubblicious in Bond Market? from CNBC: In the fourth quarter alone, companies have announced nearly $35 billion in special dividends, some of that funded by debt. Yet, many corporate debt strategists say the signs of a bubble are just not there, based on the healthiness of the borrowers’ balance sheets and the fact that there is huge appetite for the paper in a low yield environment. Strategists, however, do [...] The markets are going to go into meltdown soon so expect stocks to lose 20 percent of their value, Marc Faber, author of the Gloom, Boom and Doom report told CNBC on Tuesday. “I don’t think markets are going down because of Greece, I don’t think markets are going down because of the “fiscal cliff” – because there won’t be a “fiscal cliff,” Faber told CNBC’s “Squawk Box.” “The market is going down because [...] The great deleveraging event continues to unwind while one sector of debt continues to grow by leaps and bounds. While other forms of debt have fallen by $1.6 trillion since the peak of the debt bubble mania, student loan debt has increased by a stunning $303 billion since the third quarter of 2008. What is more disturbing is the rising delinquencies seen in the student debt market that has now breached the $1 [...] This Next Economic Collapse will be greater than the Great Depression… what makes this one different? Well for starters, it’s not going to happen in just one country. It’s going to happen to the whole world. The reason for this is we have centralized and globalized everything. So few things are separate from each other and trade lines are very blurred. As a result, if one country goes down, they all go down… The other problem [...] Lord knows we’ve had more than enough scandals ginned up by Wall Street over the years, and the message that banking executives proclaim after each is: “Don’t worry, we’ve learned that lesson, and it will never happen again.” Which is how we got to the recent spectacle of Jamie Dimon, the chief executive officer ofJPMorgan Chase & Co. (JPM), testifying twice before Congress that although the bank’s chief investment office was taking [...] In other words, you take your junk lower quality paper to the ECB and you reserve your high quality collateral (e.g. bunds) for the private repo market. The problem is that the private repo market continues to seize up because of a lack of high quality collateral and a rising sense of risk aversion over counterparty risk, i.e. you don’t trust that you are going to get paid back so you demand [...] China » http://www.reuters.com/article/2012/04/26/us-china-economy-banks-idUSBRE83P07320120426?feedType=RSS&feedName=businessNews“ De-euroisation is (still) de problem From FT: Or, imagine foreign holdings of eurozone sovereign debt turning back the clock some 15 years… to before there was a eurozone. A few charts from Rabobank on Friday (click to enlarge): The first pair of charts make the point that this is via foreign holders selling into the LTRO-related buying by sovereigns’ domestic banks. The orangey charts here need some annotation… In the Italy one, Rabo’s fixed income analysts Richard McGuire and [...] From Peter Tchir of TF Market Advisors Volatility Is Back Volatility is back. The S&P moved more than 1% on 4 of the 5 days, had the biggest down day of the year, and even the least volatile day was a 0.7% move. Back on April 5th, we saw a warning sign in the credit markets that the bid/offer spread for European CDX indices was widening. This has extended into investment grade indices in [...] pril 13 (Bloomberg) — Spanish banks’ borrowings from the European Central Bank jumped by almost 50 percent in March, reaching the most on record, as lenders tap emergency loans and channel some of it into sovereign debt purchases. Average net borrowings by Spanish banks climbed to 227.6 billion euros ($300 billion) last month from 152.4 billion euros in February, the Bank of Spain said on its website today. Spanish lenders took [...] This is definitely the story of the morning… For several days, we’ve been talking about how bad Spanish equity markets have been performing, but actually the bond market has been tame. Today the country is getting hit where it hurts. The country had a mediocre auction of 3-year debt, and now rates are rising across the curve. The 10-year yield has been exploding higher all morning, as you can see clearly in the intraday [...] Depressing news. Schools overcharge, the young and uninformed agree to loan terms which loan sharks envy and another bubble forms: Student loans support the education of millions of students nationwide, yet much is unknown about the student loan market. Relevant data are limited and, for the most part, anecdotal. Also, sources tend to focus on recent college graduates and do not reveal much information about the indebtedness of parents, graduate students, [...] Written by Jeff NielsonMonday, 05 March 2012 13:26 One of the most poorly kept secrets in Wall Street’s empire of fraud was that credit default swaps were never anything but pretend-insurance. The credit default swap market is a $60+ trillion paper Ponzi-scheme. The Wall Street crime syndicate claiming to “back” this insurance have nothing more than a few $billion of liquidity apiece. It is a fact of arithmetic that these fraud-factories [...] You have to really question what passes for financial analysis these days. One financial show was discussing the recent increase in consumer debt as something positive. In the same breath this person also said thathouseholds increased savings. Now think about this statement. If you financed a $2,000 vacation on your credit card but increased savings by $500 did your balance sheet improve? Of course not. Let us not even dive into [...] by ZH A number of headlines from Bloomberg, via Die Welt, that the ECB will undergo a bond swap with the NCBs on their greek government bonds and the ‘profit’ will flow to governments. *ECB SWAPPING GREEK BONDS FOR NEW GREEK BONDS, WELT SAYS By Andy Xie BEIJING ( MarketWatch ) — Recently, stock markets around the world have performed remarkably well. This may even continue for a few months. The U.S. Federal Reserve’s promise to hold interest rates near zero until 2014 and signal of a third round of quantitative soon, combined with an improving U.S. labor market, have emboldened risk-takers. Financial markets are seeing more risk-on trade. However, the [...] In an interview with Italian newspaper Milan Finanza on Saturday, JP Morgan CEO Jamie Dimon said that he could lose up to $5 billion from the firm’s exposure to the PIIGS countries. As Reuters reports, “Dimon said the bank was exposed to the five countries (PIIGS) to the tune of around $15 billion. “We fear we could lose up to $5 billion … We hope the worst won’t happen, but even [...] Jim Willie CB Central banks are the current sovereign debt market. It is a vacated market; they are the majority bidders via debt monetization. Monetary inflation has become the new normal. In perverse fashion, the financial markets celebrate the monetized purchases, even calling for higher volume. In the process, bond and stock market integrity has been destroyed. Foreign creditors are exiting the US Treasury market. Large European banks [...] The global debt crisis, of course, is nothing new. Since the dawn of time, men have been lending other men money (or other things of value) and not getting them back. But it’s only recently that the solution to this state of affairs has gotten so complicated that even PhD economists can’t figure it out. In most situations in which people or companies can’t pay their debts, a simple thing happens. It’s called “bankruptcy.” The [...] kingworldnews.com With so much fear and uncertainty in markets around the world, today King World News interviewed Ben Davies, CEO of Hinde Capital. Davies alerted KWN that his firm is seeing crash signals similar to those of 2008. When asked about these signals, Davies responded, “We’re seeing that lending spreads are widening. Certain rates are starting to look stressed. Clearly there’s a funding issue brewing within the banking sector with what’s [...] Wall Street Still Thinks Germany Is Bluffing The current bond market havoc in Mediterranean countries is only compatible with S&P at 1,250 if you believe that the European debt market is simply wrong about Italy and Spain. Either the US equity market or the European debt market is making a profound miscalculation here. The key question is whether Germany will bend to accept a titanic new sovereign debt purchasing program. Yesterday resembled [...] By Dominique de Kevelioc de Bailleul
A “gigantic bank run” is imminent, so says Nobel Prize winner economist Paul Krugman.
In his Nov. 1 post, the economist every one enjoys making fun of believes the endgame for the euro lies in the breadbasket of the European sovereign debt market, Italy, leading to one of two lynchpin countries, France, to collapse next. Then, it’s bedlam.
“The question I’m trying to answer right now is [...] financialsense.com Let’s talk about maybe one of the reasons why QE2 failed. In your view, will they announce another QE3 or QE4 as some on Wall Street anticipate if the economy weakens? Well, unfortunately, they feel they have to do something. But in all honestly, as I think they do realize, they can’t stop it because we are in a global economy. I mean, you take the QE2 idea, then okay, [...] |
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