Independent thinking for complex markets and current events
🇺🇸 Small banks cash assets to total assets shrinks. The Fed’s BTFP comes due in March. It’ll be extended. The Fed postpones at the expense of making worse, the consequences of liquidating underwater securities to meet depositor’s demand for their money. Chart: @RealEJAntoni pic.twitter.com/vGFwfMATXd — Alex Joosten (@joosteninvestor) December 24, 2023 the REAL Truth …
Banks are pocketing real money by borrowing money from the Fed's newest backstop facility, which charges a lower rate, and then parking it at another unit of the Fed, which pays higher interest. Banks are borrowing record amounts from this new facility. https://t.co/0Yt4STWbb9 pic.twitter.com/UYElYhjQxa — Lisa Abramowicz (@lisaabramowicz1) December 22, 2023 via Bloomberg: Banks borrowed …
2/4Lower deposit rates may be justified, given low and negative inflation, but their impact on Chinese consumption is complex. On the one hand, they may encourage Chinese households to save less out of current income, although this depends on their saving targets. — Michael Pettis (@michaelxpettis) December 22, 2023 4/4The best way to redirect demand …
According to the OCC, as of September 30, JPMorgan Chase (which lost $6.2 billion from its federally-insured bank in wild derivative trades in 2012) is still allowed to sit on $54.4 trillion in derivatives. Citigroup’s Citibank, which blew itself up in 2008 from derivatives and off-balance-sheet vehicles and received the largest bailout in global banking history, is sitting on …
via Daniel Lacalle: Although the Federal Reserve and the European Central Bank’s message regarding interest rate cuts seems clear, reiterating their commitment to reducing inflation, the market is expecting between five and six interest rate cuts, between 125 and 150 basis points, in the next twelve months. This shows us the bubble bias of many investors. We live in …
via naturalnews: Financial institutions in Switzerland are charging Russian clients with frozen accounts additional fees in order to access their own funds. This is according to sources within the Swiss banking and legal sectors, who warned that Swiss bankers are extracting exorbitant commissions on blocked assets belonging to Russian citizens, sometimes years in advance — a move that has …
Chinese banks accelerate bad loan sales amid rising consumer defaults in the post-COVID economic recovery. Record issuance of non-performing loan-backed securities, up 40%. Real estate meltdown hits middle-class wealth, with 30% pay cuts, stock and property losses. Households reassess money priorities, facing the impact of a 5% decline in home prices wiping out trillions in …
In the United States, federal student loans are typically guaranteed by the government. This means that if a borrower defaults on their federal student loan, the government steps in to ensure that the lender (usually a private financial institution) does not face significant financial losses. The government either pays the loan in full or guarantees …
by confoundedinterest17 Both the US Federal government and California’s government are facing a fiscal inferno. Thanks to a softening economy and inane fiscal policies. At the macro level, we see that The Federal government has gone wild spending money and borrowing it. Much more than businesses and households. Biden’s wild spending reduces the degrees of freedom that …
American banks filed to close 30 branches last week leaving yet more households without access to basic financial services. Wells Fargo shuttered twelve locations while Bank of America axed five, according to a weekly bulletin published by regulator the Office of Comtroller of the Currency. Meanwhile Citizens Bank shut down four branches between December 3 …
via Naturalnews: As the Christmas holiday approaches, food banks in the U.S. are grappling with strained resources due to inflation. In a survey conducted by impact technology company Divert Inc, only 25 percent of respondents were more likely to donate during this holiday season because of the escalating cost of food and groceries. Moreover, the survey found that the …
How about that “strong” retail sales data… pic.twitter.com/kzrjb4ZvdI — Amy Nixon (@texasrunnerDFW) December 14, 2023 I mean, what are they going to do? Repossess the empty bag of Doritos you ate months ago? As far as subprime loans go, these are the worst possible imaginable ones for banks. What’s the collateral? At least in 2008 …
via fox9: A 13-year-old Waconia girl says she is disappointed and upset after a bank closed her savings account and sent the hundreds of dollars in it to the state of Minnesota. Jennifer Luedloff and her husband opened a savings account for their daughter, Paige, when she was still a baby. Paige is 13 years …
via bettermarkets: Dennis M. Kelleher, Co-founder, President, and CEO of Better Markets issued the following statement in response to the testimony of Wall Street’s CEOs today before the Senate Banking Committee. “Wall Street’s CEOs testified before the Senate Banking Committee today as if they were the chief employment and economic growth officers for the United States …
Some people questioned in their replies that investors are dumping gold. Well, what about learning reading charts? pic.twitter.com/1ggz0BPlBh — Michael A. Arouet (@MichaelAArouet) December 3, 2023 Just one thing matters: in November, central banks added $350BN in liquidity, the third largest increase since March pic.twitter.com/xjThXLOQam — zerohedge (@zerohedge) December 4, 2023 🥇#Gold has broken from …
Well, the parking is free…https://t.co/xdvbKsr1K6. — Dave Dietz (@WiscoDaveTRO) December 1, 2023 Barclays customers in Hove will have to do their in-person banking from a van in a local graveyard as the bank closes its last branch in the area next week… https://www.telegraph.co.uk/money/banking/barclays-closes-branch-tells-customers-use-van-graveyard/#:~:text=The%20van%20is%20temporarily%20being,Monday%20from%2010am%20to%203pm Overdue Office Loans Are New Pain Point for Banks in FDIC Report …
by HighYieldLarry In America, the crisis is never over because it’s never solved. It is just patched and kicked down the road.
by Michael If you do things the right way, in the long run you will get positive results. But if you do things the wrong way, in the long run you will get negative results. Our banks are the beating heart of our entire economy, and unfortunately they have been doing things the wrong way …
The current moment is crucial for the precious metals industry, and a monthly close at an all-time high could signal the start of a new secular move in gold. This potential shift is anticipated to be driven by central banks, which still hold 80% of sovereign debt relative to their balance sheet assets, and traditional …
Global banks’ increasing liquidity hoarding, seen in the eurodollar space and reflected in the record highs of the Federal Reserve’s BTFP balance, heightened borrowings instead of repaying emergency funds, and a surge in the Foreign Repo Pool at FRBNY, indicates widespread caution. As US banks actively hoard cash, Reserve managers globally fortify dollar reserves, suggesting …
by cowboyrun Had a closing yesterday and even today the bank hasn’t funded the deal. I won’t say who, but it’s a big one. Seems the banks have a cash problem and many of them are acting weird. Reminds me a lot of 2008-2009 when I was working at banks and the things they would …
via YAHOO: Already stung by soaring bad loans and record low net interest margins, lenders such as Industrial and Commercial Bank of China Ltd. may soon be asked for the first time to provide unsecured loans to developers, many of whom are in default or teetering on the brink of collapsing. The risky lifeline threatens …
Over the last several weeks there have been concerning developments across the global banking system. Overseas data point to serious enough trouble it is causing foreign official institutions to take evasive actions. But it isn’t just offshore banks; data for domestic US banks shows correlated behavior. What’s behind this sudden global liquidity hoarding? Banks around …
The financial landscape is shifting as Barclays unveils a $1.25 billion cost-cutting plan with potential job cuts, contributing to a 26% share price drop under the current CEO. Deutsche Bank remains flat, while HSBC sees a 37% increase. The finance and tech sectors have witnessed over 20,000 job layoffs this year, challenging the traditional notion …
https://www.youtube.com/watch?v=cP_68dzdThg This has been a rough year for American Banks. Back in March, we saw the collapse of three US banks within a week. That was the biggest banking failure to hit the US since the 2008 financial crisis. By the time the fallout from the Great Recession was over, 600 banks had failed. But …
Japan grapples with a pivotal moment as its key inflation measure shows the first acceleration in four months, hinting at potential inflationary pressures. Simultaneously, the nation faces a persistent downturn in factory activity, marking the sixth consecutive month of contraction, intensifying speculation about the Bank of Japan’s imminent pivot away from NIRP (Negative Interest Rate …
by Michael There is a reason why I am watching the banks so carefully. The banks are the beating heart of our economic system, and so if they get into big trouble we will all feel the pain. That is precisely what happened in 2008, and that is precisely what is happening again right now. …
