Global financial system implosion begins

[Falcon]

I think you mean Iran.

Indeed. They cut Iran's cables. They invaded Iraq. Got the two mixed up - apologies.

 

[cesare]

Tesco is disposing of its Homeplus businesses in Korea.

 

[ItWillNeverWork]

Global financial system implosion begins!

Tesco is disposing of its Homeplus businesses in Korea.

 

[not-bono-ever]

so lets recap. early on Thursday morning, a handful of favoured chinese banks in the UK & HK were tasked with selling about 60 -80 billion USD belonging to the PBOC ,against the offshore remimbi in an attempt to being the rates of the regulated vs unregulated reminbi in line.It was a military style intervention operation , all happening at the same time.Early impact brought the offshore down( up )1.7% or so. sadly, it started to creep back again late friday as the markets digested it.

Expect more intervention as the PBOC dump more of their multi trillion $ reserves in further intervention in the coming weeks

This is serious stuff.

 

[yield]

Wolfgang Schaeuble, the German finance minister, says we're 'moving towards the next bubble'
Sep. 11, 2015

"It is certain that we are moving towards the next bubble," said Mr Schäuble in gloomy speech in Berlin, writes Stefan Wagstyl. "We should draw the lessons from the last [global financial] crisis."

China, Brazil Among Emerging Markets at Risk of Banking Crisis
13/09/15

Credit growth in China, Brazil and Turkey doesn’t only risk spurring a hangover in bad debt -- it also signals a banking crisis is on the horizon, according to the Bank for International Settlements.

The world’s biggest developing nations were quick to recover from the 2008 global financial crisis, financing expansion in a borrowing spree, and now as growth subsides, lenders are grappling with mounting bad loans.

Wall Street Banks to Settle CDS Lawsuit for $1.87 Billion
11/09/15

Some of Wall Street’s biggest financial institutions -- including Goldman Sachs Group Inc., JPMorgan Chase & Co., Citigroup Inc. and HSBC Holdings Plc -- have agreed to a $1.87 billion settlement to resolve allegations they conspired to limit competition in the lucrative credit-default swaps market.

The banks “made billions of dollars in supracompetitive profits” by taking advantage of “price opacity in the CDS market,” the investors said.

 

[yield]

UK may have to cut interest rates, warns Bank of England chief economist
18 September 2015

Interest rates in the UK could be cut further from their record low level, the Bank of England’s chief economist has warned, as he highlighted signs that the global financial crisis is entering a third phase of turmoil.

What do you think? Unnecessary dom and gloom from the economist?

Ultra low interest rates and quantitative easing were meant to be temporary measures. Seven years gone and still on life support.

 

[yield]

Central Banks Policy Asynchronous-ity – A Source of New Risk
September 21st, 2015 Satyajit Das

The interest rate moves have been accompanied by large changes in currency markets. Volatility in currency and interest markets, in particular, has increased. Shares markets have been affected but not nearly as much. Like the early tremors that indicate the heightened risk of the big one, these large moves may signal a major adjustment.

The position is eerily similar to 1997/98, when falling commodity prices, especially oil, a stronger US dollar, rising US interest rates and emerging market debt and weaknesses led to the Asian monetary crisis, the Russian default and the collapse of hedge Long Term Capital Management. For the world’s many economies addicted to foreign capital, the threat of instability in international money markets is serious. This is so especially when other pressures such as the end of the commodity boom, weak domestic activity in many economies and inflated asset markets are considered. . The risk to financial stability is rapidly increasing.

 

[not-bono-ever]

PBOC intervention again - looks like tgey are trying to stem the weakening offshore reminbi in the face of more bad news from china

 

[dilberto]

If austerity is an inevitable consequence of the debt crisis then the reduction in demand which it presages is not only likely to lead to price deflation but also asset and stock market price deflation which was the experience of Japan after 1990.

 

[not-bono-ever]

Bank of England concerns over buy-to-let boom - BBC News

"The growing buy-to-let property market in the UK could post a threat to wider financial stability, a Bank of England committee has said
Buy-to-let mortgage lending had the potential to "amplify" a housing boom and bust, the Bank's Financial Stability Committee (FPC) concluded."

The best economic brains in the land at work.Fuck me.

 

[teqniq]

No shit Sherlock, but...

...It stopped short of suggesting any intervention by government or regulators at this stage...

 

[yield]

It's all `perverted' now as U.S. swap spreads tumble below zero
September 25, 2015

At the height of the financial crisis, the unprecedented decline in swap rates below Treasury yields was seen as an anomaly. The phenomenon is now widespread.

Swap rates are what companies, investors and traders pay to exchange fixed interest payments for floating ones. That rate falling below Treasury yields -- the spread between the two being negative -- is illogical in the eyes of most market observers, because it theoretically signals that traders view the credit of banks as superior to that of the U.S. government.

Are they expecting more quantitative easing from the Federal Reserve?

 

[not-bono-ever]

more shit being lined for despatch to the fans. the gold market may not be as open ad it seems. usual suspects implicated in rigging.

Switzerland probes banks over precious metals price fixing

funnily enough , at least one of these us has been trying to get out if the market for a year now without losing face. the others are neck deep in libor rigging pretty much.lots more to come out of this. lots and lots...

 

[gimesumtruf]

It's not worth talking about if our government gives the riggers a free pass.

 

[not-bono-ever]

im getting the sense here that the much talked about capitalist free market model is not as good as its supporters reckon. dont quote me on that though

 

[Artaxerxes]

Bank of England concerns over buy-to-let boom - BBC News

"The growing buy-to-let property market in the UK could post a threat to wider financial stability, a Bank of England committee has said
Buy-to-let mortgage lending had the potential to "amplify" a housing boom and bust, the Bank's Financial Stability Committee (FPC) concluded."

The best economic brains in the land at work.Fuck me.

Fucking hell these guys catch on quick don't they?

 

[yield]

dont quote me on that though

Libor interest rates, Foreign Exchange Rates, the gold benchmark, mis-selling mortgage-backed securities & payment protection insurance.

Like you said it's almost as if they're not keen on transparent markets and price discovery?

Makes me wonder what is next?

High-Frequency firms dominate Treasury trading in near secret
September 24, 2015

Trading in the $12.7 trillion U.S. Treasuries market, once the domain of Wall Street’s biggest banks, is increasingly dominated by firms most people have never heard of.

Determining which ones is largely guesswork, however, which is peculiar in this market, which is the deepest, most liquid in the world and sets the benchmark rates for everything from mortgages to corporate debt. The unwelcome secrecy is also a little strange considering how much more transparent the world’s largest banks have become.

 

[yield]

Glencore's wild ride has investors asking: Can it happen again?
October 1, 2015

From London to New York to Hong Kong, the frantic question kept coming: could this be another Lehman?

But nowhere did it cause more alarm than inside Glencore Plc -- the Swiss commodities giant that had suddenly found itself at the epicenter of a global panic on Monday.

What began that morning in London, with a sudden plunge in Glencore’s share price, cascaded across oceans and time zones and left the company’s billionaire chief executive, Ivan Glasenberg, scrambling to calm anxious shareholders, creditors and trading partners.

Days later, even as Glencore regained most of the $6 billion of shareholder wealth erased in a few hours, many investors wondered if Glasenberg can hold the markets at bay. Few market players, including people close to Glencore, are able to pinpoint why a blue-chip member of the FTSE-100 Index -- even one that had been under pressure from sliding commodities prices -- lost almost a third of its value in a blink. And that, investors worry, suggests this could all happen again.

High frequency traders?

World's biggest pension fund is moving into junk and emerging bonds
October 1, 2015

Japan’s $1.2 trillion Government Pension Investment Fund, the world’s largest, unveiled sweeping changes to its foreign bond investments, hiring more than a dozen new asset managers and creating mandates for junk and emerging-market securities.

GPIF faces mounting pressure to boost returns and diversify assets as pension payouts for the world’s oldest population swell. The fund has pared domestic bonds in the past year in favor of equities, inflation-linked debt and alternative assets. Its foray into high-yield bonds comes as the securities hand investors the biggest losses in four years.

“I’m worried," said Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co. in Tokyo. “The timing isn’t good. We’re talking about the Fed raising rates, and the assets that are likely to be affected the most by this are junk bonds. Investing in emerging-market currencies is worrying, too."

This will end well

How the banks ignored the lessons of the crash
Wednesday 30 September 2015

Ask people where they were on 9/11, and most have a memory to share. Ask where they were when Lehman Brothers collapsed, and many will struggle even to remember the correct year. The 158-year-old Wall Street bank filed for bankruptcy on 15 September 2008. As the news broke, insiders experienced an atmosphere of unprecedented panic. One former investment banker recalled: “I thought: so this is what the threat of war must feel like. I remember looking out of the window and seeing the buses drive by. People everywhere going through a normal working day – or so they thought. I realised: they have no idea. I called my father from the office to tell him to transfer all his savings to a safer bank. Going home that day, I was genuinely terrified.”

All we learn from history

 

[Falcon]

With Glencore, Commodity Rout Beginning to Look Like a Crisis

 

[not-bono-ever]

glencore are marc rich. they are like cockroaches. they will survive in one form or another

 

[Coolfonz]

Marc Rich is dead. Saw him once, looked like one of the aliens from Babylon 5. He may have been dead then actually, couldn't tell.

Dunno if any of you cats caught this... Nidera Says `Rogue Trader' Caused Significant Loss in Biofuels

 

[yield]

Central Banks lose bond-market credibility as woes mount
October 5, 2015

More and more, bond traders are drawing the same conclusion: central bankers globally are coming up short in their attempts to combat the world’s economic woes.

Even after hundreds of interest-rate cuts and trillions of dollars in quantitative easing, the bond market’s outlook for inflation worldwide is approaching lows last seen during the financial crisis. In the U.S., Europe, U.K., and Japan, those expectations are now weaker than they were before their respective central banks began their last rounds of bond buying.

Deflation also re-emerged in Japan, just as Prime Minister Shinzo Abe declared that Japan had successfully shrugged off its “deflationary mindset.” Economists blamed it on weak domestic demand and plunging oil prices, which effectively wiped out the impact of the BOJ’s most-aggressive round of bond buying yet.

“The next stage for both the Bank of Japan and ECB is more easing; they’re going to keep putting fuel on the fire, but at some point the fire’s big and there’s nothing left to burn -- What do we do?” said Philip Moffitt, the Asia-Pacific head of fixed income at Goldman Sachs Asset Management, which oversees about $1 trillion globally. “So your immediate response to that would be a huge sell-off in risk assets.”

 

[not-bono-ever]

Nice article on how a couple of bottom feeder legal loan sharks prospered

How Two Guys Lost God and Found $40 Million

 

[not-bono-ever]

they will be found dead soon I would wager.mysterious circumstances.

 

[mauvais]

The question I have, thanks to our new link adornments, is never mind the end of the world, how did Bloomberg come to dominate financial reporting? It's basically Buzzfeed does money.

 

[not-bono-ever]

terminals and telly primarily. they are head to head with reuters in vendor info ...

 

[mauvais]

I mean on this thread. Scroll up and it's almost all blue Bs. The more interesting and analytical when-is-the-crash reportage is in more sober outlets, IMO.

 

[not-bono-ever]

I see what you mean.ad an entry point, thr bloomberg and reuters journo pieces are easily digestible. in that sense, I csn see the buzzfeed comparison - not everyone wants to read dull reports themselves I suppose

 

[mauvais]

Yeah, fair enough. As I've said before I quite like FT Alphaville, as it sits somewhere in between Buzzfeed and economic doctorates. A lot is totally incomprehensible to me as a layman, including sections within articles, but overall it provides an interesting perspective, and a decent ongoing narrative too.

 

[not-bono-ever]

I think the ft firewall stops people from posting more links