Category: Credit Crisis 2011
The analysis published under this category are as follows.
Tuesday, September 20, 2011
Will it be Japanization, Monetization, or Financial Crisis 2.0? / Stock-Markets / Credit Crisis 2011
By: Mike_Shedlock
I believe the Eurozone will break apart. Eurobonds are dead, so are fiscal unions. The question is really what path the crisis takes.
Via email, Saxo Bank chief economist Steen Jakobsen outlines several scenarios in a series of three emails that I spliced together.
Sunday, September 18, 2011
Global Systemic Crisis: Implosive Fusion of Global Financial Assets, Worst Ahead / Economics / Credit Crisis 2011
By: LEAP
As anticipated by LEAP/E2020 since November 2010, and often repeated up to June 2011, the second half of 2011 has started with a sudden and major relapse of the crisis. Nearly USD 10 trillion of the USD 15 trillion in ghost assets announced in GEAB N°56 have already gone up in smoke. The rest (and probably much more) will vanish in the fourth quarter of 2011, which will be marked by what our team calls "the implosive fusion of global financial assets". It’s the two major global financial centers, Wall Street in New York and the City of London, which will be the "preferred reactors" of this fusion. And, as predicted by LEAP/E2020 for several months, it’s the solution to the public debt problems in some Euroland countries which will enable this reaction to reach critical mass, after which nothing is controllable; but the bulk of the fuel that will drive the reaction and turn it into a real global shock (1) is found in the United States. Since July 2011 we have only started on the process that led to this situation: the worst is ahead of us and very close!
Saturday, September 17, 2011
European Leaders Flex Muscle / Politics / Credit Crisis 2011
By: John_Browne
Last Wednesday in a conference call followed around the world, German Chancellor Angela Merkel, French President Nicholas Sarkozy and Prime Minister George Papandreou of Greece gave broad assurances that in exchange for Greek commitment to enact further austerity measures, the flow of bailout funds will continue from the north. Although details were scarce, and no significant structural solutions were proposed, the symbolism was sufficient to diffuse mounting anxieties on both sides of the Atlantic. Stock markets of the major democracies rose strongly, while precious metals fell. But investors are right to wonder if anything of substance actually occurred.
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Thursday, September 15, 2011
French bank downgrade increases pressure for austerity across Europe / Politics / Credit Crisis 2011
By: Barry_Grey
The ratings firm Moody’s downgraded two of France’s biggest banks Wednesday, increasing pressure on governments across Europe to impose austerity measures on the working class.
Moody’s cut its rating for France’s second largest bank, Société Générale, from Aa2 to Aa3, and downgraded the third biggest bank, Crédit Agricole, from Aa1 to Aa2, citing their exposure to Greek government bonds. It left BNP Paribas, France’s biggest bank, at Aa2, while putting it on negative watch.
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Tuesday, September 13, 2011
Wall Street Issues Its Latest Ultimatum to Europe / Stock-Markets / Credit Crisis 2011
By: Jesse
Read full article... Read full article...“I’m very close to thinking the United States shouldn’t be in Basel any more. I would not have agreed to rules that are blatantly anti-American. Our regulators should go there and say: ‘If it’s not in the interests of the United States, we’re not doing it'...
I think any American president, secretary of Treasury, regulator or other leader would want strong, healthy global financial firms and not think that somehow we should give up that position in the world and that would be good for your country. If they think that’s good for the country then we have a different view on how the economy operates, how the world operates.”
Friday, September 09, 2011
European Debt Crisis Worse than 2008 / Interest-Rates / Credit Crisis 2011
By: Dr_Jeff_Lewis
While the US markets were closed on Monday in observance of Labor Day, it became grossly apparent that the European debt crisis would be far worse than the American financial crisis of 2008.
Astute investors will notice something vastly different from the European implosion. Whereas fixed-income securities, primarily US Treasuries, became more attractive to investors as the equity markets tanked in 2008 and 2009, the same isn’t happening in Europe.
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Thursday, September 08, 2011
PIMCO's Gross: QE1 and QE2 'Destroyed' Credit Creation / Interest-Rates / Credit Crisis 2011
By: Bloomberg
Bill Gross of PIMCO appeared on Bloomberg Television's "Surveillance Midday" with Tom Keene this afternoon to discuss the impact of the Fed's asset purchases and the outlook for market reaction to tonight's speech by President Obama.
Gross said that QE by the Fed "destroyed" credit creation, that he'd like to "see something bold" from Obama and that the markets will be "disappointed" if stimulus is below $300 billion.
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Tuesday, September 06, 2011
Many Banks Will Not Survive if Forced to Value Sovereign Debt at Market Prices / Interest-Rates / Credit Crisis 2011
By: Mike_Shedlock
Josef Ackermann, CEO of Deutsche Bank admitted the obvious today with statements recognizing that many organizations will fail at mark-to-market pricing. To show you the Fantasyland world these bankers live in, Ackermann also believes European banks are now much better capitalized and less dependent on short-term financing.
Monday, September 05, 2011
Central Banks, BIS and Goldman Sachs Coercion / Politics / Credit Crisis 2011
By: BATR
Did you ever wonder why countries allow private central banks to issue their money? Somehow, missing in the self-governing status of governments is the courage to deny the seduction or the threats of the global banking cabal, over the control of a nation’s currency. How did this obvious usurpation of independence become an unquestioned acceptance by the very governments who proclaim to be sovereign nations? The answer reveals that the right of autonomous government is now dependent upon the approval of the banking cartel. The myth that a historic country can exert their populist will and financial self-determination, when it conflicts or opposes the interest and objectives of the moneychangers, is outright fantasy.
Monday, September 05, 2011
US Government versus World's Big Banks, Cascading Risks Multiply / Politics / Credit Crisis 2011
By: DK_Matai
Make no mistake about it, history was made on September 2nd, 2011, after the financial markets closed in New York. As Churchill said in 1942, "Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning." What are the unintended consequences of the massive multi-billion-dollar lawsuit in which an independent US Government regulator is suing 17 big banks from the United States, United Kingdom, Germany, Switzerland, Japan and France? As we approach the 3rd anniversary of the collapse of Lehman Brothers on 15th September, 2008, as a result of cascading risks, markets may yet demonstrate extreme volatility once again with fundamentally destabilising consequences.
Monday, September 05, 2011
Are Wall Street Banks Too Big To Blame For Subprime? / Politics / Credit Crisis 2011
By: EconMatters
Goldman Sachs has historically been one of the more bullish investment houses on Wall Street, but the firm has recently taken a dark macro view. The Wall Street Journal reported on Sept. 1 that Goldman issued a 54-page report sent to their institutional clients on August 16th arguing that as much as $1 trillion in capital may be needed to shore up European banks; that small businesses in the U.S., a past driver of job production, are still languishing; and that China’s growth may not be sustainable.
Friday, August 26, 2011
The Next Financial Panic Banking Sector Crash Could Start Tomorrow / Stock-Markets / Credit Crisis 2011
By: Money_Morning
Shah Gilani writes:
Fears of a banking crisis and rolling contagion are making global stock and bond markets extraordinarily volatile - and with good reason.
Another financial meltdown, on par with what we saw in 2008, is looming large on the horizon.
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Wednesday, August 24, 2011
Financial Crisis 2011 Worse than 2008, European Banking System on the Verge of Collapse / Stock-Markets / Credit Crisis 2011
By: Money_Morning
Keith Fitz-Gerald writes:
I hate to sound alarmist, but it looks as though the European banking system - and consequently the global banking system - is edging its way towards another epic collapse.
That means in just a few short months, stocks could be back at their 2009 lows while gold prices travel north of $2,500 an ounce.
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Wednesday, August 24, 2011
Will the Market Force Bank of America to Raise Capital? / Companies / Credit Crisis 2011
By: Bloomberg
Rochdale Securities analyst Dick Bove told Bloomberg TV's Margaret Brennan this morning that Bank of America has sufficient capital and that you cannot "break the bank" by driving the stock price lower.
Bove also re-affirmed his belief that Goldman Sachs needs to shake up its management ranks.
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Wednesday, August 24, 2011
On the Brink Of Another Financial Crisis, Eurozone Crackup / Stock-Markets / Credit Crisis 2011
By: Mike_Whitney
"We believe that the market has now entered a major downtrend. It is a mistake to dismiss the slide we’ve seen to date as mindless and devoid of fundamentals as many strategists maintain. These are not just scary headlines—-they are scary fundamentals.... There will undoubtedly be some more sharp rallies that will be interpreted as new bull markets. In our view, however, the bear market has only begun, and has a long way to go." -- Comstock Partners, "Bear Market Rally Far From Over", Pragmatic Capitalism
Saturday, August 20, 2011
The Root Causes of the Global Financial Crisis / Politics / Credit Crisis 2011
By: Bob_Chapman
Every professional has their own method of analyzing markets, finance and economies, and some do well coming up with the direction of social and political issues as well. The other 97% miss one-half to two-thirds of the time. That is not very good and one asks why? The answer is simple they really haven’t studied history as well as they should have.
Saturday, August 20, 2011
Financial Meltdown: The Case Against the Ratings Agencies / Stock-Markets / Credit Crisis 2011
By: Michael_Hudson
In today’s looming confrontation the ratings agencies are playing the political role of “enforcer” as the gatekeepers to credit, to put pressure on Iceland, Greece and even the United States to pursue creditor-oriented policies that lead inevitably to financial crises. These crises in turn force debtor governments to sell off their assets under distress conditions. In pursuing this guard-dog service to the world’s bankers, the ratings agencies are escalating a political strategy they have long been refined over a generation in the corrupt arena of local U.S. politics.
Sunday, August 14, 2011
Central Banks Monetary Policy Rocked by Global Financial Markets Turmoil / Interest-Rates / Credit Crisis 2011
By: CentralBankNews
The past week in monetary policy was rocked by the turmoil in global sentiment in the wake of the US sovereign credit rating downgrade, and heightened concerns about contagion in the European sovereign debt crisis. In all, 11 central banks reviewed monetary policy rates, with the following banks adjusting rates: Qatar -50bps to 4.50%, Mozambique -50bps to 16.00%, and Belarus +200bps to 22.00%. Meanwhile the following central banks held interest rates unchanged: Rwanda 6.00%, Indonesia 6.75%, US 0.25%, Hong Kong 0.50%, Norway 2.25%, Serbia 11.75%, South Korea 3.25%, and Peru 4.25%.
Tuesday, August 09, 2011
S&P U.S. Credit Rating Downgrade: Where to Now? / Stock-Markets / Credit Crisis 2011
By: Brian_Bloom
The credit rating of the world’s largest economy has been downgraded. That is a fact. Neither hand wringing nor stone throwing nor “I told you so” will be constructive under current circumstances. The overriding question is: What is the appropriate response?
Tuesday, August 09, 2011
U.S. Debt Downgrade Impact, Stock Market Are We There Yet? / Stock-Markets / Credit Crisis 2011
By: John_Mauldin
The question we will ask ourselves in 20 years is, “Where were you when they downgraded the US and the Fed?” This week’s Outside the Box is from David Rosenberg. He has made his letter public and graciously given me permission (at 34,000 feet ) to send it to you.
I thought about writing an immediate response to this weekend’s events but decided to wait and meditate on what has transpired. Clearly, we are at the beginning of the Endgame. And that saddens me. The events of the weekend were hotly discussed at the Shadow Fed meeting in Maine. My youngest son, Trey, was paying attention this year. Last night he said, “Dad, it is good for you that you are right with your book, but I don’t think it’s good for the rest of us.” Out of the mouths of babes.