Category: Credit Crisis 2014
The analysis published under this category are as follows.
Sunday, January 26, 2014
The Infinite Elasticity of Credit – Redux / Politics / Credit Crisis 2014
By: Raul_I_Meijer
I’ve told you that I intend to re-run pieces from the TAE archive from time to time. Today’s is from Nicole Foss, dated September 7, 2010. If possible, it’s only gained in relevance. Credit and debt are not just issues in the US, and not just at the present time either. History is full of credit/debt crises (1294 comes to mind), and so is the world today, as we can see with our w(e)ary eyes watching China and Argentina. The enormous debt bubble that has been blown on top of the one that already existed in 2008, and is being promoted as a cure against the latter, should only serve to remind us of the lessons of history, all the more. Here’s Nicole:
Saturday, January 25, 2014
A Bank Run in London? Debt Rattle 2014 / Stock-Markets / Credit Crisis 2014
By: Raul_I_Meijer
It seems to come as a surprise to some, but when you think about it, it seems obvious that it only makes sense that if you try to hide a crisis behind huge amounts of money and credit leaked into global financial markets, those markets become addicted to credit injections faster than you can say taperworm.
There may be something to say for stimulus and Keynesianism in certain situations, but not in all cases, and certainly not in a world already drowning in piles of leveraged debt. There it merely serves to further distort economic systems, a distortion that makes it so difficult for people to see what is real and what is not, that it can and will safely be used by the financial industry to dump its part of the debtload on everyone else. It is then inevitable that cracks will appear, first among the weaker parties involved: Argentina, Greece, Venezuela.
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Wednesday, January 22, 2014
Has US Already Sown Seeds for Next Macro Financial Markets Deflation Crisis? / Stock-Markets / Credit Crisis 2014
By: John_Mauldin
Greg Weldon has long been my favorite slicer and dicer of data – his charts and insights on charts really help me keep my eyes peeled. But in order to get across to us the drastic state of the economy as we plunge headlong into 2014 – a year that we all know will be pivotal – Greg has felt it necessary to resort to a rather trenchant metaphor from the year just past. Yes, says Greg, the economy is … Breaking Bad.
But – listen up now – bad is now good. At least temporarily.
Good, because bad macroeconomic data means an ongoing (if slightly tapering) supply of monetary steroids (Greg's term) will be forthcoming from our pushers, the central banks of the developed world.
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Friday, January 17, 2014
Pandoras Box 2014 - The Largest Financial Collapse in History / Stock-Markets / Credit Crisis 2014
By: Ty_Andros
Looking for an accident/black swan
As we begin 2014, it is important to recognize the levels of INSANITY currently existent in the world enabling us to understand the apocryphal nature of the times we live in and prepare ourselves to meet the challenges it represents. The world is leveraged to an extent that has never before seen in history! Debt now masquerades as NOMINAL growth and REAL growth has ceased. Headline economic reports are now nothing more than POLITICALLY CORRECT HOAXES to FOOL the public at large and mask the betrayal of the public by the leaders who hold the reins of power. ECONOMIC Stagnation emerged after the 2008 Global financial crisis and in real terms has NEVER ENDED!
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Monday, December 30, 2013
Why Janet Yellen Won’t See The Next Big Financial Crisis Coming - Video / Stock-Markets / Credit Crisis 2014
By: PhilStockWorld
Courtesy of ZeroHedge. Submitted by Tyler Durden.
"Conventional economic theory says 'crisis don't happen' unless they are hit by an [outside] shock" exclaims Steve Keen, adding that numerous Nobel Prize winning economists have suggested that "capitalism is stable…" and "the problem of avoiding depressions has been solved for many decades."
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Sunday, December 29, 2013
The QE Taper and the China Power Struggle Credit Squeeze / Interest-Rates / Credit Crisis 2014
By: Raul_I_Meijer
There is a crisis a-brewing in China that evolves around interest rates, with interbank rates as, let’s say, the initial center piece. The underlying cause of the crisis is that both official banks and the shadow banking system seek to escape the restrictions placed on the financial system by the government and the central People’s Bank of China (PBoC), who in essence want to set all interest rates and all policies. At the very moment the regulators recently decided to let markets set some interest rates, a move intended to cool things down, money market rates went up so fast that more action by the PBoC, after an initial refusal, was deemed necessary.
Thursday, December 26, 2013
Facing the Future – Mitigating a Credit Crisis Liquidity Crunch 2014 / Politics / Credit Crisis 2014
By: Nicole_Foss
Despite the media talking up optimism and recovery, people are not seeing the supposed good news playing out in their own lives. As we have discussed here many times before, the squeeze continues on Main Street, while QE has generated asset bubbles at the top of the financial food chain. Complacency reigns, but this is the endgame. Increasingly delusional collective optimism, based on illusory wealth for the few, has ben the driving force for 2013, even as the smart money has been selling everything not nailed down for most of the year – cheerfully handing the empty bag to a public that demands it. It’s been a five year long party, where, demonstrably, no lessons were learned from the excesses preceding the previous peak, and the consequences that followed from it.
Tuesday, December 17, 2013
Sick German Banks the Monster European Banking Crisis of 2014 / Stock-Markets / Credit Crisis 2014
By: John_Mauldin
(Special note from John: The letter is later this week, and I apologize. The rule is that you don't want to know about the storms I encountered, just whether I got the ship to harbor. So, back in the harbor, here is the letter, which will give you a head's-up on a brewing banking crisis in Europe.)
This week, Geert Wilders and his Party for Freedom in the Netherlands and Marine Le Pen of the Front National (FN) of France held a press conference in The Hague to announce that they will be cooperating in the elections for the European Parliament next spring and hope to form a new eurosceptic bloc. Their aim, as Mr. Wilders put it, is to "fight this monster called Europe," while Ms. Le Pen spoke of a system that "has enslaved our various peoples." They want to end the common currency, remove the authority of Brussels over national budgets, and undo the project of integration driven with so much idealism by two generations of European politicians. (My thought about Marine Le Pen after looking at her policies is that if Marine Le Pen is the answer for France, they are asking the wrong question.)
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