Markets

A Brand New Type Of Credit Crisis Is Producing A Domino Effect In China

Last month, I called attention to an article in Caixin magazine about the implosion in Beijing of something called a “credit guarantee company,” and examined the potential risks such entities pose to China’s financial stability.  Today, Caixin published another must-read article about a new crisis in which credit guarantees — […]
A Brand New Type Of Credit Crisis Is Producing A Domino Effect In China
Markets

A China Squeeze Is On The Horizon

Europe and all things European have been holding the world’s attention to an extent that it’s all too easy to forget that life goes on elsewhere. One of the corollaries of the European shock has been a general global deleveraging rolling right through to the emerging markets.
A China Squeeze Is On The Horizon
Markets

Eurozone Finance Ministers Finally Admit That Banks Need To Be Recapitalized

[credit provider=”DanielleCM via flickr” url=”http://www.flickr.com/photos/danni_m/536492895/”] According to Reuters, EU finance ministers have prepared a statement calling for European banks to raise their capital.The move would signal acknowledgment of the ineffectiveness of bank stress tests conducted by the European Central Bank in July. This couples mounting speculation that banks may indeed […]
Eurozone Finance Ministers Finally Admit That Banks Need To Be Recapitalized
Markets

The Cost Of Insuring European Bank Debt Has Doubled Since April

[credit provider=”Danske Bank via Pragmatic Capitalism” url=”http://pragcap.com/cds-market-to-euro-banks-this-is-worse-than-2008″] The cost of insuring junior and senior bonds at 25 European banks has doubled since April, according to a Bloomberg report.Such numbers appear to confirm fears that funding problems are threatening to cripple European banks.
The Cost Of Insuring European Bank Debt Has Doubled Since April
Markets

Wells Fargo Agrees to Pay $590 Million To Settle Class-Action Lawsuit

[credit provider=”[clint] via flickr” url=”http://www.flickr.com/photos/clintw/241152422/sizes/m/in/photostream/”]On Friday, Wells Fargo disclosed that it had agreed to pay $590 million to settle class-action lawsuits brought by investors concerning bonds sold by Wachovia, which Wells Fargo acquired in October 2008.Among the claims in the suits: That Wachovia misrepresented the quality of a mortgage portfolio […]
Wells Fargo Agrees to Pay $590 Million To Settle Class-Action Lawsuit
Markets

How The U.S. Can Get Its AAA Rating Back

[credit provider=”Flickr rosefirerising” url=”http://www.flickr.com/photos/rosefirerising/4139267835/”] Credit rating agency opinions always provide the steps a company or government needs to take in order to improve its grade.Standard & Poor’s rating action on the U.S., which downgraded the country’s long-term debt from AAA to AA+ on Friday, August 5, 2011, includes the information […]
How The U.S. Can Get Its AAA Rating Back
News

There Is Still Reason To Be Hopeful About American Politics

CHICAGO – These days, the United States media are full of ordinary Americans venting their rage at the incompetence and immaturity of their politicians. Even though the US government’s debt limit was raised in the nick of time, the process was – and remains – fraught with risk. Why, the […]
There Is Still Reason To Be Hopeful About American Politics
News

Why A US Credit Rating Downgrade Isn’t Going To Happen

So imagine for a moment that you are the person at, say, Moody’s Investor Services in charge of deciding whether to lower the credit rating of the United States of America. Would the last four weeks have firmed up your impression that the Obama Administration and the US Congress has […]
Why A US Credit Rating Downgrade Isn’t Going To Happen
Markets

Why US Banks And Greek Debt Will Be The Next Trigger For A Global Credit Crisis

[credit provider=”en.wikipedia.org” url=”http://en.wikipedia.org/wiki/File:May_2010_Greek_protests.jpg”] Will a hidden link between the Greek debt situation and the U.S. banking system ignite the next global credit crisis? The odds of the “next” global credit crisis are increasing with each new day, and with each new revelation. And escalating fears are hitting worldwide stock markets […]
Why US Banks And Greek Debt Will Be The Next Trigger For A Global Credit Crisis
Markets

Dylan Grice Explains How The First Credit Crunch Happened In Rome, Why We Are Repeating The Same Mistakes, And Why Gold Is A Good Buy

[credit provider=”Wikimedia Commons” url=”http://en.wikipedia.org/wiki/File:Tiberius_NyCarlsberg_Mirrored.png”] Dylan Grice may think buying commodities is a bad bet against human ingenuity, but he’s willing to make an exception to his rule for gold.That’s because while Grice thinks humans are getting more and more creative in terms of science, technology, and production, they are doomed […]
Dylan Grice Explains How The First Credit Crunch Happened In Rome, Why We Are Repeating The Same Mistakes, And Why Gold Is A Good Buy
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