Financial Crisis

[SheungWan]

Oil keeps sliding on oversupply fears

The price of oil has hit another five-year low as fears of oversupply continue to mount.

http://www.bbc.co.uk/news/business-30379956

Okay, we know oil can be pumped to oblivion in the short term but a few interesting comments about the demand side . . .

Global confidence was also undermined on Monday after European Central Bank governing council member Ewald Nowotny warned that the eurozone economy was experiencing a "massive weakening", sending the euro lower against the dollar and the pound.

Tony Cross, market analyst at Trustnet Direct trading group, said the figures indicated that the world's second-largest economy was slowing down: "Chinese trade data fell well short of expectations and this has sent traders scurrying for the exits as the new week gets under way."

I guess that makes a change from complaining about the high cost of oil, people not affording to drive their cars, heat their homes etc.

China heading for the rocks. Now there's a new story.

[midas]

Treasury Warns Congress (and Investors): This Financial Creature Could Sink the System

In its 2014 Annual Report to Congress, the US Treasury’s Office of Financial Research, which serves the Financial Stability Oversight Council, analyzed for our Representatives the “potential threats” to the US financial house of cards. Among the biggest concerns was a financial creature that has boomed in recent years. The Fed, FDIC, and OCC have warned banks about it since March 2013. But they’re just too juicy: “leveraged loans.”

Leveraged loans are issued by junk-rated corporations already burdened by a large load of debt. Banks can retain these loans on their balance sheets or sell them. They can repackage them into synthetic securities called Collateralized Loan Obligations (CLOs) before they sell them. They have “Financial Crisis” stamped all over them.

http://wolfstreet.com/2014/12/08/who-gets-to-eat-the-losses-from-cyclical-excesses-treasury-warns-congress-and-investors-about-leverage-loans/

Edited December 9, 2014 by midas

[SheungWan]

Treasury Warns Congress (and Investors): This Financial Creature Could Sink the System

In its 2014 Annual Report to Congress, the US Treasury’s Office of Financial Research, which serves the Financial Stability Oversight Council, analyzed for our Representatives the “potential threats” to the US financial house of cards. Among the biggest concerns was a financial creature that has boomed in recent years. The Fed, FDIC, and OCC have warned banks about it since March 2013. But they’re just too juicy: “leveraged loans.”

Leveraged loans are issued by junk-rated corporations already burdened by a large load of debt. Banks can retain these loans on their balance sheets or sell them. They can repackage them into synthetic securities called Collateralized Loan Obligations (CLOs) before they sell them. They have “Financial Crisis” stamped all over them.

http://wolfstreet.com/2014/12/08/who-gets-to-eat-the-losses-from-cyclical-excesses-treasury-warns-congress-and-investors-about-leverage-loans/

I see at the bottom of the page displaying the above rant, a trending link to the article 'Top 5 Dating Tops for Men and Women'.

[mccw]

The Athens stock exchange has plunged by more the 15% over fears political turmoil will hit Greece's fiscal reform measures.

If the drop holds until markets close it would become the biggest one-day fall in almost 30 years.

[SheungWan]

The Athens stock exchange has plunged by more the 15% over fears political turmoil will hit Greece's fiscal reform measures.

If the drop holds until markets close it would become the biggest one-day fall in almost 30 years.

The usual musical chairs from Greece attempted back-tracking on agreements.

[Naam]

the end is nigh! 7,259 for one barrel of crude oil

[midas]

The Athens stock exchange has plunged by more the 15% over fears political turmoil will hit Greece's fiscal reform measures.

If the drop holds until markets close it would become the biggest one-day fall in almost 30 years.

The usual musical chairs from Greece attempted back-tracking on agreements.

What do you expect when you kick the can down the road?

[midas]

Of 28 Seriously Troubled Mega-Banks - 24 of them are in Europe

Big banks in Europe are riskier than anywhere else in the world as shown in chart form
They have higher non-performing loans, greater asset shrinkage, larger losses and higher debt-to-equity ratios. And European banks are bracing for even worse loan losses.
It’s the combination of those characteristics that lead to a crisis, and the eurozone essentially is in one today.

http://capitalmarketlabs.com/troubled_banks.html

[SheungWan]

The Athens stock exchange has plunged by more the 15% over fears political turmoil will hit Greece's fiscal reform measures.

If the drop holds until markets close it would become the biggest one-day fall in almost 30 years.

The usual musical chairs from Greece attempted back-tracking on agreements.

What do you expect when you kick the can down the road?

We like to kick your can down the road.....

[midas]

we were warned about the true state of Greece back in April

When system blackmails societies

It seems that the Greek government currently follows a similar logic to blackmail citizens as we approaching euro-elections. After the Baltakos scandal (http://www.enetenglish.gr/?i=news.en.politics&id=1839), the global neoliberal dictatorship rushed to support Samaras administration through the announcement that Greece is returning to markets and the Angela Merkel's visit to Athens on Friday, as a reward to government officials who adopt every part of the IMF neoliberal agenda. It's an attempt to reverse the negative climate against government.

http://failedevolution.blogspot.gr/2014/04/when-system-blackmails-societies.html

[SheungWan]

we were warned about the true state of Greece back in April

When system blackmails societies

It seems that the Greek government currently follows a similar logic to blackmail citizens as we approaching euro-elections. After the Baltakos scandal (http://www.enetenglish.gr/?i=news.en.politics&id=1839), the global neoliberal dictatorship rushed to support Samaras administration through the announcement that Greece is returning to markets and the Angela Merkel's visit to Athens on Friday, as a reward to government officials who adopt every part of the IMF neoliberal agenda. It's an attempt to reverse the negative climate against government.

http://failedevolution.blogspot.gr/2014/04/when-system-blackmails-societies.html

Usual tirade. Anti-Merkel et al but begging bowl never rescinded. Anti-EU but never the call to drop out.

[Loptr]

Nothing spells confidence in the financial system other than having the US Congress slip a bill through that requires the US taxpayer be held responsible for the actions of the big banks... Now, in one fell swoop, the US taxpayer is now responsible to backstop $303 trillion USD in derivatives held by US banks...

http://www.zerohedge.com/news/2014-12-12/presenting-303-trillion-derivatives-us-taxpayers-are-now-hook

Presenting The $303 Trillion In Derivatives That US Taxpayers Are Now On The Hook ForCourtesy of the Cronybus(sic) last minute passage, government was provided a quid-pro-quo $1.1 trillion spending allowance with Wall Street's blessing in exchange for assuring banks that taxpayers would be on the hook for yet another bailout, as a result of the swaps push-out provision, after incorporating explicit Citigroup language that allows financial institutions to trade certain financial derivatives from subsidiaries that are insured by the Federal Deposit Insurance Corp,explicitly putting taxpayers on the hook for losses caused by these contracts.

Thanks Congress for looking out after your constituents as opposed to Wall Street...

[Harsh Jones]

when it s a good time to buy gold?

Now Is a good time to buy. All the downside has been flushed out

[midas]

Nothing spells confidence in the financial system other than having the US Congress slip a bill through that requires the US taxpayer be held responsible for the actions of the big banks... Now, in one fell swoop, the US taxpayer is now responsible to backstop $303 trillion USD in derivatives held by US banks...

http://www.zerohedge.com/news/2014-12-12/presenting-303-trillion-derivatives-us-taxpayers-are-now-hook

Presenting The $303 Trillion In Derivatives That US Taxpayers Are Now On The Hook ForCourtesy of the Cronybus(sic) last minute passage, government was provided a quid-pro-quo $1.1 trillion spending allowance with Wall Street's blessing in exchange for assuring banks that taxpayers would be on the hook for yet another bailout, as a result of the swaps push-out provision, after incorporating explicit Citigroup language that allows financial institutions to trade certain financial derivatives from subsidiaries that are insured by the Federal Deposit Insurance Corp,explicitly putting taxpayers on the hook for losses caused by these contracts.

Thanks Congress for looking out after your constituents as opposed to Wall Street...

So now we come to know why Alan Greenspan fought so hard to keep this market unregulated and why the derivatives casino has mushroomed so much.

Because all along the banksters planned to let the sheeple take on the risk. With everything now as far as the banksters are concerned it's heads I win, tails you lose. When are people going to rebel against this sh*t

[Naam]

the four horse derivative men are riding again, presented by Dyler Turd and null-hedge.

[Digitalnomade]

seem we start to see the premises of the new crisis. how they will call it? debt crisis, money printing crisis, students debt crisis?

[SheungWan]

seem we start to see the premises of the new crisis. how they will call it? debt crisis, money printing crisis, students debt crisis?

I guess you will be selling some calls this morning then?

[Harsh Jones]

the four horse derivative men are riding again, presented by Dyler Turd and null-hedge.

If derivatives don't matter then why this bailout provision ?

[midas]

the four horse derivative men are riding again, presented by Dyler Turd and null-hedge.

If derivatives don't matter then why this bailout provision ?

good question indeed

[Naam]

the four horse derivative men are riding again, presented by Dyler Turd and null-hedge.

If derivatives don't matter then why this bailout provision ?

who said derivatives don't matter?

[midas]

Savings accounts are at risk as long as JP Morgan CEO gets everything he wants

In a nutshell, the budget provision would allow banks to use the savings accounts of Americans to speculate in the markets on behalf of hedge funds, companies and the rich. Specifically, the banks would use customer savings to help clients make bets on derivatives, the technical financial instruments that were at the center of the financial crisis. There’s no benefit to this rule to anyone in America who has less than, say, $5m in the bank.

http://www.theguardian.com/commentisfree/2014/dec/13/playing-with-other-peoples-money-will-jamie-dimon-get-his-way-again?CMP=share_btn_tw

Edited December 15, 2014 by midas

[Naam]

the four horse derivative men are riding again, presented by Dyler Turd and null-hedge.

If derivatives don't matter then why this bailout provision ?

good question indeed

irrelevant question based on non-existent assumptions

[jpinx]

the four horse derivative men are riding again, presented by Dyler Turd and null-hedge.

If derivatives don't matter then why this bailout provision ?

good question indeed

irrelevant question based on non-existent assumptions

You're assuming there's no assumptions?

[midas]

the four horse derivative men are riding again, presented by Dyler Turd and null-hedge.

If derivatives don't matter then why this bailout provision ?

good question indeed

irrelevant question based on non-existent assumptions

only in your world

[midas]

If derivatives don't matter then why this bailout provision ?

good question indeed

irrelevant question based on non-existent assumptions

You're assuming there's no assumptions?

[Naam]

it's a pure waste of precious time to argue with people who since 5 years and 9 months are whining, whinging, wailing and decrying the unjust and cruel financial world, prophesying every other week "apocalypse now" and conveniently suppressing their umpteenth times presented advice "invest in rice fields and gold".

[midas]

it's a pure waste of precious time to argue with people who since 5 years and 9 months are whining, whinging, wailing and decrying the unjust and cruel financial world, prophesying every other week "apocalypse now" and conveniently suppressing their umpteenth times presented advice "invest in rice fields and gold".

L-dog.jpg

And it's an even bigger waste of precious time to even discuss this issue with someone who has repeatedly time and time again said in this thread that there is no cause for concern regarding the astronomic size of the derivatives casino........... and yet is never ever able to back up this astonishing claim (which is quite contrary to every other expert who actually works in this field ) with any hard evidence to support his lunatic theory

The Root Cause Of The 2008 Financial Meltdown: Derivatives

http://investmentwatchblog.com/the-root-cause-of-the-2008-financial-meltdown-derivatives/

[Naam]

it's a pure waste of precious time to argue with people who since 5 years and 9 months are whining, whinging, wailing and decrying the unjust and cruel financial world, prophesying every other week "apocalypse now" and conveniently suppressing their umpteenth times presented advice "invest in rice fields and gold".

L-dog.jpg

And it's an even bigger waste of precious time to even discuss this issue with someone who has repeatedly time and time again said in this thread that there is no cause for concern regarding the astronomic size of the derivatives casino........... and yet is never ever able to back up this astonishing claim (which is quite contrary to every other expert who actually works in this field ) with any hard evidence to support his lunatic theory

The Root Cause Of The 2008 Financial Meltdown: Derivatives

http://investmentwatchblog.com/the-root-cause-of-the-2008-financial-meltdown-derivatives/

presenting repeatedly time and time again fairy tales and horror stories in this thread based on blatant lies and/or hallucinations such as

who has repeatedly time and time again said in this thread that there is no cause for concern...

are quite boring

why not presenting a single link as evidence?

[jpinx]

Whose going to be brave enough to buy into roubles soon ? lock it in for 5 years when the rate hits 20%

[MJP]

Whose going to be brave enough to buy into roubles soon ? lock it in for 5 years when the rate hits 20%

Definitely put a fiver on it.