Category: Credit Crisis 2011
The analysis published under this category are as follows.Thursday, January 06, 2011
Flight to safety does not equal flight to German Bunds Anymore / Interest-Rates / Credit Crisis 2011
Edin Mujagic writes: Mention the words ‘euro area’ and ‘periphery’ and immediately almost everyone will associate that with troubles, strikes, indebted nations and rating downgrades, to name just a few flattering possibilities.
Read full article... Read full article...
Thursday, January 06, 2011
EU Commission Plans Haircuts on Euro-zone Bank Debt / Interest-Rates / Credit Crisis 2011
A European commission has come up with a new proposal to shield taxpayers from the banking crisis via haircuts in senior bank bonds. The proposal only covers bank debt, not sovereign government debt, and supposedly it applies to some mythical time in the future, not now.
However, sovereign yields have hit new record highs in Greece, and are close to record highs in Portugal, Spain, and Ireland, I fail to see how the crisis can possibly be contained, and I fail to see why it takes a commission to decide that bank bondholders need a haircut. It should be perfectly obvious there is no other possible solution. The big fear is haircuts spread to sovereign debt.
Wednesday, January 05, 2011
Is Your Bank on the "100 Safest" List? Maybe You Should Find Out / Personal_Finance / Credit Crisis 2011
We want to trust in the financial stability of our bank. After all, most of us have money in these institutions.
In spite of our wishful thinking, the tide of bank failures has not stopped. And these failures are occurring well after the heart of the financial crisis -- and even after some of these banks received bailouts.
Read full article... Read full article...
Monday, December 20, 2010
The Zombie Banks Feast, Whilst the Economy Starves / Economics / Credit Crisis 2011
Japan, Inc. is run by the big banks for the big corporations. America, Inc. is run by the big corporations for the big banks. Take your pick.
Japan has not had hyperinflation. Neither have we. But will we? In the words of Nashville part-time singer and full-time financial advisor, Merle Hazard, "Will it be Zimbabwe or Japan?" If you have not seen Merle's video, you really should. It's here.
Read full article... Read full article...
Friday, December 10, 2010
Banking Sector Financial Crisis 2011, The Real Reason Why the Fed May Go For QE3 / Companies / Credit Crisis 2011
Shah Gilani writes: Ben Bernanke has a secret. And it's a secret that very likely terrifies him and his policymaking brethren at the U.S. Federal Reserve.
That secret has to do with his latest round of "quantitative easing," a liquidity-push known as "QE2."
Read full article... Read full article...