Global financial system implosion begins

[not-bono-ever]

That's a whole thread in itself for the economics geeks on here.

 

[terapija]

Not even remotely accurate. You're not very good at this, are you?

To put it as simply as the English language will allow : I am saying that the prediction of an implosion of the global financial system, as predicted in the thread header, was just so much fear mongering bullshit.

You stupid

Emergency Economic Stabilization Act of 2008 - Wikipedia
2008 United Kingdom bank rescue package - Wikipedia
The Big Bank Bailout
Italy's Latest Bank Bailout Has Created A Two-Speed Eurozone
Reality check: how much did the banking crisis cost taxpayers?

It's actually crazy how much money they've pumped in the system

 

[Happy Larry]

It's actually crazy how much money they've pumped in the system

The reality is that, in the USA where of course the "global financial crisis" began, $90bil more has been paid back into the system than was paid out.

The thread header which talks of a "global implosion" is pure nonsense, as the system has corrected itself. The system is in even better state now as legislation has been promulgated and rules put in place to prevent this situation arising in the future.

Large corporations have been massive taxpayers for decades, so why shouldn't they get some government aid when they fall on "bad times" just as individual taxpayers get? As the "bailout score card" shows, they've paid back far more than they've received in aid.

https://projects.propublica.org/bailout/

 

[DotCommunist]

. The system is in even better state now as legislation has been promulgated and rules put in place to prevent this situation arising in the future.

 

[not-bono-ever]

The reality is that, in the USA where of course the "global financial crisis" began, $90bil more has been paid back into the system than was paid out.

The thread header which talks of a "global implosion" is pure nonsense, as the system has corrected itself. The system is in even better state now as legislation has been promulgated and rules put in place to prevent this situation arising in the future.

Large corporations have been massive taxpayers for decades, so why shouldn't they get some government aid when they fall on "bad times" just as individual taxpayers get? As the "bailout score card" shows, they've paid back far more than they've received in aid.

https://projects.propublica.org/bailout/

You’ve jumped the shark , you fool

 

[mwgdrwg]

Fucking lol.

 

[gosub]

You’ve jumped the shark , you fool

Actually that propublica link is quite interesting , and theoretically BASEL 3 should make some difference...but yeah,

Spoiler

 

[NoXion]

I nearly lost my hot chocolate when I read that!

 

[yield]

The Dangerous Myth of 'Taxpayer Money'
20/10/17

“There is no such thing as public money, only taxpayer money.” — Margaret Thatcher, 1983

As Happy Larry is fixated on taxpayers this is worth a read.

 

[Happy Larry]

U.S. Declares Bank and Auto Bailouts Over, and Profitable

U.S. Declares Bank and Auto Bailouts Over, and Profitable

Obama actually declared in 2014 that the bailout money had been repaid, and then some! The US stock exchanges have gone on to record highs since then.

Some "implosion"

 

[yield]

UK's £200bn consumer debt unsustainable, S&P warns
Tuesday 24 October 2017

The rapid rise in UK consumer debt to £200bn from car finance, personal loans and credit cards is unsustainable at current growth rates and should raise “red flags” for the major lenders, ratings agency Standard & Poor’s has warned.

In detailed analysis of the sector, S&P warned that losses from this form of lending suffered by banks and other financial institutions could be “sharp and very sudden” in an economic downturn and may be exacerbated if the Bank of England increased interest rates.

Alarm sounds over state of UK high street as sales crash
Thursday 26 October 2017

High street sales are falling at their fastest rate since the height of the recession in 2009 as struggling households put the brakes on spending, according to a survey that is a grim omen for struggling retailers this Christmas.

The CBI’s closely watched survey recorded a “steep drop” in retail sales in October. The slump sent shockwaves through the high street, with the CBI’s chief economist, Rain Newton-Smith, warning of a “softening” of demand as inflation ate into Britons’ spending power. Department stores and specialist food and drink outlets bore the brunt of the spending slowdown.

World's witnessing a new Gilded Age as billionaires’ wealth swells to $6tn
Thursday 26 October 2017

The world’s super-rich hold the greatest concentration of wealth since the US Gilded Age at the turn of the 20th century, when families like the Carnegies, Rockefellers and Vanderbilts controlled vast fortunes.

Billionaires increased their combined global wealth by almost a fifth last year to a record $6tn (£4.5tn) – more than twice the GDP of the UK. There are now 1,542 dollar billionaires across the world, after 145 multi-millionaires saw their wealth tick over into nine-zero fortunes last year, according to the UBS / PwC Billionaires report.

 

[ffsear]

Interest Rates up to 0.5%

 

[BemusedbyLife]

Interest Rates up to 0.5%

My interest on my savings as I try to get enough to get on the housing ladder is literally on the order of pennies per year, this isn't going to help much

 

[not-bono-ever]

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Just to keep us all up to date - bonds constructed of Student debt being additionally securitised and flogged- and much the issuance is less than Junk - they have the rating that is either missing because they are so utter shit or sub DPRK.

So you lazy former Students- keep up them payments on yer loans , otherwise you could be responsible for the next crash.

 

[ffsear]

Subscribe to read
Just to keep us all up to date - bonds constructed of Student debt being additionally securitised and flogged- and much the issuance is less than Junk - they have the rating that is either missing because they are so utter shit or sub DPRK.

Who the fuck is buying it?

 

[yield]

Who the fuck is buying it?

People are buying any old shit right now. It's "a rising tide lifts all boats". EU junk bonds were beating US treasuries for a while.

Complete misallocation of risk. But that's what quantitative easing has given

 

[not-bono-ever]

It is very cheap to buy. heavily discounted to make the numbers of eventual non payers into account. the Government will need to keep the buyers sweet so they can tap them for additional cash in the future, so these will be seriously cheap.

 

[ffsear]

So this is basically like a CDO with no asset to actually back it?

 

[not-bono-ever]

They are a cdo package yes / would you class someone’s liabilities as an asset ? Hmmm

It’s a 200 bn market in the great Satan. I can see no problem at all in borrowing something that the boys at Goldman Sachs developed years ago.

Nope

 

[yield]

As Credit Booms, Citi Says Synthetic CDOs May Reach $100 Billion
2 November 2017

The comeback in complex credit derivatives blamed for exacerbating the global financial crisis is picking up pace.

That’s according to new research this week from Citigroup Inc., one of the biggest arrangers of so-called synthetic collateralized debt obligations. Sales of the products may jump to as much as $100 billion this year from about $20 billion in 2015, Citigroup analysts wrote in an Oct. 31 report.

While investors suffered billions of dollars in losses on similar bets a decade ago, the leverage offered by synthetic CDOs is luring back buyers in an era of low yields and dwindling volatility.

 

[teqniq]

 

[not-bono-ever]

As Credit Booms, Citi Says Synthetic CDOs May Reach $100 Billion
2 November 2017

No volatility - greater risk appetite in search of scarce returns. Not going to end well

 

[yield]

The Stock Market Never Goes Down Anymore
12 January 2018

“Even if you were the bullest of the bulls, this crazy rally start to the year took you off guard,” said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. “We’ve completely run out of ways to describe what’s happening. We get asked a lot, are you seeing anything different that could explain the rally? The answer is no.”

All good then!

The company that runs Britain is near to collapse. Watch and worry
Guardian. Aditya Chakrabortty Friday 12th Jan 2017

Carillion builds schools, roads, hospitals – and it’s meant to be a big part of HS2. What’s more, if it goes bust, the bill will be picked up by taxpayers.
You may never have heard of Carillion. There’s no reason you should have. Its lack of glamour is neatly summed up by the name it sported in the 90s: Tarmac. But since then it has grown and grown to become the UK’s second-largest building firm – and one of the biggest contractors to the British government. Name an infrastructure pie in the UK and the chances are Carillion has its fingers in it: the HS2 rail link, broadband rollout, the Royal Liverpool University Hospital, the Library of Birmingham. It maintains army barracks, builds PFI schools, lays down roads in Aberdeen. The lot.

There’s just one snag. For over a year now, Carillion has been in meltdown. Its shares have dropped 90%, it’s issued profit warnings, and it’s on to its third chief executive within six months. And this week, the government moved into emergency mode. A group of ministers held a crisis meeting on Thursday to discuss the firm. Around the table, reports the FT, were business secretary Greg Clark, as well as ministers from the Cabinet Office, health, transport, justice, education and local government. Even the Foreign Office sent a representative.

 

[yield]

Bankers, Policy Makers at Davos Revel in ‘Sweet Spot’ Economy
26 January 2018

The global elites have rediscovered their animal spirits.

As the World Economic Forum drew to a close in the Swiss ski resort, the overarching mood of the executives, policy makers and investors was that their economies are in fine shape and that stock markets have every reason to extend their run.

"Let’s celebrate what could go right for the moment because we are in a sweet spot," International Monetary Fund Managing Director Christine Lagarde said on the closing panel discussion.

Such sentiment led delegates to declare that it was the most upbeat Davos gathering since before the financial crisis. Yet the giddiness also gave some investors pause as they warned against turning too exuberant.

“I do feel it’s a little bit like 2006,” Barclays Plc Chief Executive Officer Jes Staley said earlier in the week.

Sweet spot ffs. The rulers and their gilded bubble.

 

[petee]

The Stock Market Never Goes Down Anymore
12 January 2018

All good then!

right, i've been watching my 401K go up and up, with is nice, but the only thing behind it seems to be trumpism. i've been sort of following bloomberg this past year and so far as i can tell they cottoned onto this right away, no doubt hewing to the politics of their anti-trumpist owner, though that doesn't mean they're wrong. meanwhile people are being evicted like there's no tomorrow etc. and, the next article on that bloomberg page is "Biggest Stock Sell Signal Since 2013 Sparked by Record Inflows".

 

[yield]

right, i've been watching my 401K go up and up, with is nice, but the only thing behind it seems to be trumpism. i've been sort of following bloomberg this past year and so far as i can tell they cottoned onto this right away, no doubt hewing to the politics of their anti-trumpist owner, though that doesn't mean they're wrong. meanwhile people are being evicted like there's no tomorrow etc. and, the next article on that bloomberg page is "Biggest Stock Sell Signal Since 2013 Sparked by Record Inflows".

It's not really Trumpism. The global powerhouse Central Banks The Fed, Bank of England, European Central Bank, Bank of Japan, Swiss National Bank etc have been buying anything they can lay there hands on. Started off as an emergency measure to stop the Global Recession 2009 but they didn't stop.

The Risks in Central-Bank Balance Sheets Are Clear

Put another way, “normalization” has been a much-vaunted word used by the members of the Fed, but nothing of the sort has occurred. We are being bamboozled. Perhaps it will occur at some point, but it has not happened yet. “Flatlining” and “exiting” are not the same propositions.

In any event, most central banks are expanding their assets, more than making up for any “shrinkage” by the Fed. Yardeni Research points out that the major central banks assets grew by $1.6 trillion in the last 12 months. What difference will it make if the Fed cuts back by $10 billion per month? Almost nothing -- not even enough to be considered a rounding error.

Global central banks now have $21.7 trillion in assets, and that figure is heading to $24 trillion by next September, according to my calculations. Where in this scenario is there any sort of “normal”? The combined actions of the world’s central banks have never happened before, so how do you characterize “normal” in that context? You can’t.

$21.7 trillion in assets as of December 2017! Even when they were neutral all monies made on what they owned were recycled into new purchases. At some point with a "return to normalisation" they'd theoretically want to sell their assets to the market. Is there a market for it? Who can buy that much? When is the credit cycle going to end?

 

[petee]

It's not really Trumpism. The global powerhouse Central Banks The Fed, Bank of England, European Central Bank, Bank of Japan, Swiss National Bank etc have been buying anything they can lay there hands on. Started off as an emergency measure to stop the Global Recession 2009 but they didn't stop.

in the States, it's trumpism, by which i mean, a sense among american corporate managers that they're going to get whatever they want, including protectionism. there is scarcely any change in fundamentals now from what was going on when obama left. what's going on elsewhere i don't know, and i of course acknowledge the international nature of capital. you may be right about it.

 

[ska invita]

It's not really Trumpism. The global powerhouse Central Banks The Fed, Bank of England, European Central Bank, Bank of Japan, Swiss National Bank etc have been buying anything they can lay there hands on. Started off as an emergency measure to stop the Global Recession 2009 but they didn't stop.

The Risks in Central-Bank Balance Sheets Are Clear

$21.7 trillion in assets as of December 2017! Even when they were neutral all monies made on what they owned were recycled into new purchases. At some point with a "return to normalisation" they'd theoretically want to sell their assets to the market. Is there a market for it? Who can buy that much? When is the credit cycle going to end?

When you say Assets do you mean shares?

 

[yield]

When you say Assets do you mean shares?

Different central banks bought varied mixes. Overall it's mainly bonds/debt of various types. BoJ was unusual in purchasing a lot of shares/equities.

 

[Idaho]

You've missed the start of it urban .. Disappointed. Massive stock bubble starting to crack. Ridiculous that the BBC business front page leads with the bitcoin crash (something that affects the chump change of a handful of loons and gamblers) while putting the global stock market drop 3rd (something that costs trillions and is the start of a long awaited unravelling).