Another Central Bank Hits The Panic Button - By Casey Research (23/5/15) PDF Print E-mail
Casey Research   
Saturday, 23 May 2015 08:54

At first glance, the European Central Bank’s QE program appears to be working. Asset prices are up across the Continent. Old bubbles, like property in Spain, are reflating.

But look closer and you’ll see that things aren’t going as planned. European bonds suffered a steep sell off earlier this month. And the euro was supposed to weaken to help boost European exports. Instead, it has rebounded against the dollar.

Europe’s banks are bleeding. A rumor is going around that rating agency Fitch is going to downgrade dozens of European banks. Worse, Greece says it will default on June 5. If it does, prepare for a financial earthquake.

The ECB is trying to paper over these problems. It just announced that it will speed up its QE bond purchases in May and June. Of course, it’s not the only central bank that’s trying to weaken its currency. Over a dozen central banks have eased their monetary policies in 2015 so far.

That includes China, where economic momentum has collapsed so fast that the Chinese central bank cut rates three times in six months.

As Jim Rickards wrote in his book Currency Wars, history shows that these beggar-thy-neighbor policies lead to inflation, recession, and even revolution. Rickards thinks that we’re in for an even worse financial crisis than the last one.




Add this page to your favorite Social Bookmarking websites
Reddit! Del.icio.us! JoomlaVote! Google! Live! Facebook! StumbleUpon! Yahoo! Free social bookmarking plugins and extensions for Joomla! websites!
 
‘Titanic’ Global Economy May “Collapse” Warn HSBC - Gold Is Lifeboat - By Goldcore (23/5/15) PDF Print E-mail
Goldcore   
Saturday, 23 May 2015 08:52

- “World economy is like an ocean liner without lifeboats” - HSBC
- Four areas of high risk identified by HSBC
- Risk of stock market crash
- Pension funds and insurers may not meet obligations
- Chinese recession may drag U.S. into recession or depression
- Premature rate rise would expose very fragile global economy
- “There aren’t enough lifeboats to go round”
- HSBC positive on gold due to risks
- Gold vital lifeboat when global ship strikes iceberg


The chief economist of the world’s third largest bank, HSBC’s Stephen King, has compared the global economy to the Titanic.

In a note to clients on Wednesday he wrote “We may not know what will cause the next downswing but, at this stage, we can categorically state that, in the event we hit an iceberg, there aren’t enough lifeboats to go round.”

“The world economy is like an ocean liner without lifeboats.” As we have been warning in recent months, when another recession arrives, governments do not have the ability or the reserves to prop up the economy like they did in 2008.

Global debt has soared by 40 percent since the Great Recession. We now have a staggering $200 trillion of debt globally, or almost three times the size of the global economy. It would be a “truly titanic struggle” for policymakers to right the economy, King said.



Add this page to your favorite Social Bookmarking websites
Reddit! Del.icio.us! JoomlaVote! Google! Live! Facebook! StumbleUpon! Yahoo! Free social bookmarking plugins and extensions for Joomla! websites!
 
Today’s CPI Lesson: The Fed’s 2% Inflation Target Is Completely Stupid - By David Stockman (23/5/15) PDF Print E-mail
David Stockman   
Saturday, 23 May 2015 08:51

Download PDF



Add this page to your favorite Social Bookmarking websites
Reddit! Del.icio.us! JoomlaVote! Google! Live! Facebook! StumbleUpon! Yahoo! Free social bookmarking plugins and extensions for Joomla! websites!
 
Shame, Shame, Shame On The Prime Minister & Leaders Of UMNO. All Of You Have Brought Shame To Malaysia - By Matthias Chang (22/5/15) PDF Print E-mail
Matthias Chang   
Friday, 22 May 2015 11:48

Download PDF



Add this page to your favorite Social Bookmarking websites
Reddit! Del.icio.us! JoomlaVote! Google! Live! Facebook! StumbleUpon! Yahoo! Free social bookmarking plugins and extensions for Joomla! websites!
 
Even Harvard Economists Admit Fed Policy Has "Created Dangerous Risks" - By Tyler Durden (22/5/15) PDF Print E-mail
Tyler Durden   
Friday, 22 May 2015 07:37

Zero Hedge

No lesser establishment economist than Martin Feldstein - Professor of Economics at Harvard University and President Emeritus of the National Bureau of Economic Research - has some warning words of wisdom for The Fed today: "...the Fed’s unconventional monetary policies have also created dangerous risks to the financial sector and the economy as a whole." When even The Ivory Tower is losing faith, you know The Fed is in trouble...

Excerpted from Project Syndicate...


But the Fed’s unconventional monetary policies have also created dangerous risks to the financial sector and the economy as a whole. The very low interest rates that now prevail have driven investors to take excessive risks in order to achieve a higher current yield on their portfolios, often to meet return obligations set by pension and insurance contracts.

This reaching for yield has driven up the prices of all long-term bonds to unsustainable levels, narrowed credit spreads on corporate bonds and emerging-market debt, raised the relative prices of commercial real estate, and pushed up the stock market’s price-earnings ratio to more than 25% higher than its historic average.

The low-interest-rate environment has also caused lenders to take extra risks in order to sustain profits. Banks and other lenders are extending credit to lower-quality borrowers, to borrowers with large quantities of existing debt, and as loans with fewer conditions on borrowers (so-called “covenant-lite loans”).



Add this page to your favorite Social Bookmarking websites
Reddit! Del.icio.us! JoomlaVote! Google! Live! Facebook! StumbleUpon! Yahoo! Free social bookmarking plugins and extensions for Joomla! websites!
Read more...
 
<< Start < Prev 11 12 13 14 15 16 17 18 19 20 Next > End >>

Page 18 of 919