Tuesday , 3 December 2024

Banking

Another Big Bank Shock Is Inevitable Unless…

8 years after the credit crisis, most big American banks and almost all big European banks are relapsing in spite of extraordinary central bank efforts to liquefy and engineer profits for them. However, as long as they pose colossal risks to the global economy and draw tens of trillions of dollars of central bank spending (which they mostly hoard on their balance sheets to survive and thrive) away from productive economic use, global growth will continue to stagnate, until it contracts dramatically and implodes the big banks all over again.

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Financial Armageddon Approaches: 6 Major U.S. Banks Betting 24x More Money Than They Have Via Derivatives (+4K Views)

Deutsche Bank’s catastrophic derivative exposure has hammered down its stock price from $135 in 2007 to only $17/share today - ergo a heart-stopping price loss of -87%. Furthermore, DB’s stock price appears to be hell bent for leather to follow Lehman Brothers’ lethal path to Wall Street’s graveyard due primarily to its oppressive derivative’s exposure. As Warren Buffett has said: “Derivatives are weapons of mass destruction.”

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The Decline of the USD & Rise Of An IMF – SDR Basket Of Currencies

American balance of trade deficits will start to hurt and haunt the U.S. as the world migrates to a series of arrangements for trade beyond the USD (although the USD will continue to function as the lead foreign exchange/reserve and trade currency for sometime yet) and the introduction of an IMF-SDR basket of currencies.

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What Does “Trillion” Mean – Other Than Being A “Humongous” Number?

Then the next time you hear the word "trillion" used in relation to government debt, the financial markets or the latest corporate takeover price take a step back. Then think again about the foregoing comparators. Finally, think again about the economic, business and financial markets content you are hearing, reading or seeing and the humongous numbers that are being bandied about without context.

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Will China Introducing A Yuan-denominated Gold Price Fix Be Bullish For Gold?

On April 19th China introduced a yuan-denominated gold benchmark on the Shanghai Gold Exchange in a move to become an even bigger player in the global gold market. Gold transactions to be conducted without dollars, separate from the New York and London metals exchanges that have dominated the gold market for decades. Will that be bullish for gold as so many analysts think?]

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Open Your Eyes! These Signs Suggest Another Financial Crisis Is Coming Down the Road!

Our debt today approaches $19 trillion dollars -it was only 10 trillion dollars during the financial crisis of 2008 - yet, once again, main street has fallen into a stupor state incapable of comprehending another financial crisis. Totally ignored is the fact that our real debt is closer to a not-so-normal $166 trillion. Throw in a few hundred trillion of derivative debt, held by our largest financial institutions and the reality is so incomprehensible it has become deniable - despite all the signs another crisis approaches. What are those signs? The time has come to open our eyes to reality and see the signs that clearly mark the path on which we travel to the end of the road.

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