TALKING ABOUT INCREASING UNCERTAINTY.. THIS HAS MADE UNCERTAINTY UNCERTAIN TO THE MAXI .. BACK THE HOARDING OF CASH GOLDEN....!!
I was looking through my posts but couldn't find the one where I was saying they were hording because of trouble..
This makes things clearer. I have maintained for a while that banks were hoarding cash because they were waiting to see how this mortgage mess played out. We are getting closer to the end of the housing problem. The banks and sovereign funds are apparently going to buy a large part of the houses on the govt books as well, per the Discussion on the 2011 housing bottom thread.
196 Billion from a few trillion, and the back log cleared up, and now they know where they stand, that is clarity , that's why I posted the banks being charges story on the market up for 2011 thread. This will also restore confidence to a point, JMO.
A++, A bit off the subject but without Germany: the strongest economy in the EU the EU and PIIGS would be dead. Posted the DAX... Bi Metal Au Pt NEW YORK (TheGoldAndOilGuy.com) -- Now that Federal Reserve Chairman Ben Bernanke's speech is old news, what was the financial media thinking exactly?
A significant number of financial writers had been anticipating discussion of QE3 or QE3-lite, which clearly weren't on the Fed chief's radar late week.
The focus of the Jackson Hole Summit was how to achieve long-run growth, not a discussion of monetary policy.
QE3 will not be discussed openly until the next FOMC meeting in September, which was extended to two days.
Besides the extension and the Fed chairman's prediction of growth in the back half of the year, the remainder of Mr. Bernanke's speech was nothing more than a brief synopsis of what he has already said in the recent past.
While Chairman Bernanke focuses on the U.S. economy, I have been more inclined to monitor the action across the pond.
Price action in Europe is having a major impact on financial markets here in the U.S. Traders are monitoring credit default swap (CDS) spreads on European sovereign debt as well as on domestic and European banks.
Recently U.S. banks have seen the CDS swaps on their debt rising, indicating that the marketplace believes their debt is a greater risk to investors.
Although the price action is nowhere near the 2008 and 2009 levels, current prices are relatively consistent with what was seen during the correction in the late spring of 2010.
Although there is no reason to panic at this point, this is a trend that I will be monitoring closely going forward.
For now, I continue to believe that equity markets will rally in coming weeks as conditions are extremely oversold.
A significant move lower does not seem likely at this point, but a retest of the recent lows is possible, if not probable. I would remind readers that stock market crashes generally happen within the context of an oversold market.
Although the likelihood of a crash is remote, it is still possible, and tight risk definition in this environment is warranted regardless of which side of the tape a trader is playing.
One price chart that I have been watching closely is the German DAX. The reason the German stock market index is so important is due to the financial strength of Germany within the eurozone.
Without Germany, the eurozone would crumble and the euro would be in trouble.
Post by bimetalaupt on Sept 5, 2011 12:16:50 GMT -5
Roubini: how to stem bank bleeding Sep 3 2011 Nouriel Roubini, professor of economics and international business at New York University's Stern School of Business, says the reaction to Christine Lagarde's call for greater bank capitalisation in Europe was 'ridiculous'. He tells Peter Spiegel, Brussels bureau chief, the banks need an injection of public capital. (8m 41sec) Related Links:
Watch the analysis of this interview
Credits: Produced by Seb Morton-Clark, filmed by Gregory Bobillot
Post by bimetalaupt on Sept 5, 2011 12:26:52 GMT -5
Editor's Choice VIEW FROM THE TOP from COMPANIES Howard Lutnick on benefits of turmoil 8:46 PM Cantor Fitzgerald has recently reported annual earnings growth of 35%. The FT analyses its View from the Top interview with Howard Lutnick, chief executive of both Cantor Fitzgerald and BGC Partners. He says that bonds produced by the US government are the firm's raw materials and that "chaos" and "crisis" are great words for his firm. (4m 56sec) Related Links:
Post by bimetalaupt on Sept 5, 2011 12:41:40 GMT -5
Italy's business leaders crave stability 2:20 AM As Italy continues to take a battering in the markets, Rachel Sanderson, Milan correspondent, talks to the FT's Seb Morton-Clark about the reaction of Italian business leaders. With contributions from Marco Tronchetti Provera, chief executive of Pirelli; Corrado Passera, chief executive of Intesa Sanpaolo, Italy's largest bank; and Davide Serra, co-founder of the Algebris Investments hege fund. (3m 46sec) Related Links:
Post by bimetalaupt on Sept 5, 2011 16:52:15 GMT -5
The French Red wine market is down.. First time in years.. MOM down 4% to top 100
FT.com Clippings - clip this Email SharePrint Lafite hits the fan Posted by Joseph Cotterill on Sep 05 14:13.
As markets in general turn a deeper shade of claret…
This passed us by: August was also a poor market month for fine wines. Really quite poor given their massive run in the last year. A snapshot of the benchmark indices via Liv-ex, the guardians of the market:
The major culprit here appears to be recent vintages of Chateau Lafite Rothschild Bordeaux. As Liv-ex note on their blog, Lafite accounts for a large weighting in the Fine Wine 100 index and its earliest vintages tend to sway prices quite a bit. There’s a bit going on here — questions over Chinese demand (a recent auction of Lafite vintages in Hong Kong set 2011 records for wine prices but still fell below pre-sale estimates) but also a market structure that may be out of whack and more than a bit illiquid. The Lafite 2008 vintage was praised to the high heavens by the critic Robert Parker at the time, whose influence is such that the wine was (over?) priced to suit. The first growths of 2010 Bordeaux went through similar pricing troubles only recently, as the FT’s Jancis Robinson noted.
We’d say it’s a market hobbled by its own structure… although looking at other asset classes, hardly an exception these says.
Related link: Vive le vin de Bordeaux - FT Alphaville (2009)
I love the part where most analysts are still saying the rest of the year will be robust. I think they'd be more accurate saying "bust" and then 'rowing' out into the Atlantic. The windows don't open in most Ivory Towers and the hurricane wimped before it got to Wall Street. The only wine traders will be able to afford after tomorrow is spelled 'whine'. They will even be out of luck flipping for a bottle of 2 buck Chuck.
Post by bimetalaupt on Sept 7, 2011 5:19:51 GMT -5
Court Limits Germany’s Ability to React to Debt Crisis By NICHOLAS KULISH and ALAN COWELL Published: September 7, 2011 KARLSRUHE, Germany — In a widely followed ruling on Wednesday, Germany’s Constitutional Court upheld the legality of Berlin’s rescue packages for debt-stricken euro zone countries, but said any future bailouts must be approved by a parliamentary panel. ..... The euro rose slightly on currency markets as word of the ruling emerged, but German Bund futures extended their losses, Reuters reported, quoting one unidentified trader as saying that while the broad outlines of the decision had been widely expected, markets were still waiting to parse the details. The DAX Index in Germany posted gains, along with other European stock markets.
Some analysts said the decision placed fewer restrictions than anticipated on the German government. “It’s not going to be such a lengthy process as feared, but there is still an approval process necessary,” said Jan Dubsky, a euro area economist at the Royal Bank of Scotland in London. ;D Well .. this is like a real pass co-trade system(" I BUY YOUR TOXIC BONDS WITH MONEY FROM YOUR TOXIC BONDS SO WE NOW HAVE 15% FIAT CAPITAL" YOUR LOCAL LANDIS-BANK ).. Now who owns the bank??? Who goat are we going to kill!! and for whom the country of savers is going to be paid???
Democracy is the worst form of government except for all those others that have been tried. -Winston Churchill, House of Commons 11th of November, 1947.
“The scientific man does not aim at an immediate result. He does not expect that his advanced ideas will be readily taken up… His duty is to lay the foundation for those who are to come, and point the way.” – Nikola Tesla
LAGARDE IS ACTING NUTS!! REDUCE CAPITAL IN THE CAPITAL POOR SYSTEM!!.. OK THAT IS JUST MY OPINION BUT LOOK AT THE PAPER!!,BI METAL AU PT Lagarde softens stance on EU banks
By Chris Giles in Marseilles
Christine Lagarde has softened her stance on the amount of capital needed by European banks, as finance ministers and central bankers from the leading advanced economies sought to calm febrile markets at the weekend.
Ms Lagarde, IMF managing director, confirmed that the Fund was revising its estimates of the loss of tangible equity in European banks on Saturday, saying the estimated capital losses of €200bn were “tentative” and the Fund was “in discussions with our European partners to assess the global methodology” until the final estimates are published in a Fund paper released shortly before its annual meetings in a fortnight.
But while the IMF and Europe resolved some of their differences, G7 ministers faced with diverse reasons for stalled growth agreed to implement different strategies in each country rather than a co-ordinated plan of action.
Ministers pledged to stand behind their financial systems, taking “all necessary actions to ensure the resilience of banking systems and financial markets”, to enact “growth enhancing fiscal consolidation” and they repeated their call for “a concerted effort at global level in support of strong, sustainable and balanced growth”.
............................................ Speaking after the meeting, Tim Geithner, US Treasury secretary said: “European officials fully understand the gravity of the situation … The G7, alongside the IMF, is committed to working with them to decisively address the crisis in Europe”.
AND THEY CALLED LUDWIG II MAD.. WELL SHE IS NOT BUILDING THREE CASTLES.. ONE OF THE BEST INVESTMENTS GERMANY HAS EVERY MADE VS WORTHLESS PAPER FROM GREECE that is on the German Bank books at Par!!. " NEW SWAN STONE " BRINGS INTO THE GERMANY ECONOMY MORE MONEY EVERY YEAR.. GREAT TREASURE THEY SHARE WITH THE WORLD..
AND THEY CALLED LUDWIG THE MAD.. LOOK AT THE ECONOMIC STIMULATION THAT LASTED 150 YEARS..How about Ludwig the Genius!!! JUST A THOUGHT!!! Bi Metal Au Pt
Ministers pledged to stand behind their financial systems, taking “all necessary actions to ensure the resilience of banking systems and financial markets”,
Financial System is the problem and until they address it and make the necessary changes to the financial and banking systems, we will continue to suffer.
Life, What I understand is each nation is backing only their own Banks.. So Germany is backing only the German Public and State owned Landesbanks. This is the real problem as then do not have adequate Tier1 capital; In fact most are insolvent if you mark the PIIGS bonds to market. Why do they not lend to their own industries?? Don'tNO.
Banking in the EU will be flat until they start lending to Firms that make jobs and increase GDP .. Germany has a positive GDP but Greece constricted 7.6%. For Q2-2011.
Post by lifewasgood on Sept 10, 2011 15:19:54 GMT -5
Nothing stooping other countries from reforming monetary and banking in there countries. One big problem however, USD is the reserve currency and exchange currently happens for purchase of such critical commodities Oil. Thus other countries are at a disadvantage with regard to reforming without the good ole USA leading the effort.