bimetalaupt
Senior Member
Joined: Oct 9, 2011 20:29:23 GMT -5
Posts: 2,325
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Post by bimetalaupt on Aug 23, 2011 6:31:28 GMT -5
European Banks Must Pay Up to Borrow $100B THINGS ARE BEGINING TO REFLECT THE REALITY OF THE BLACK SWANS.. WEAK BANKS HAVE TO BORROW FROM THE LENDER OF LAST RESULTS AND IN THE EU THAT IS THE ECB FOR MOST OF THE PIIGS BANKS.
ONLY THE STRONGEST CAN GET BOND FINANCING: GERMAN OR THE FINNS!!!
JUST A THOUGHT,BRUCEEuropean banks with more than $100 billion of cash to raise by year-end will have to pay up because investors perceive them as the worst credits they’ve ever been. The cost of insuring the senior and junior bonds of 25 banks and insurers doubled since April to records, according to the Markit iTraxx Financial indexes of credit-default swaps. The Euribor-OIS spread, a gauge of banks’ reluctance to lend to each other, reached the widest since April 2009 this month, while the cost for European banks to fund in dollars was near a 2 1/2-year high. “This return of generalized banking risk marks a new phase in the unfolding European drama,” said Lisa Hintz, an analyst in New York at Capital Markets Research Group, a unit of ratings firm Moody’s Investors Service. “Investors have heightened concerns about sovereign and financial institution risk.” finance.yahoo.com/news/European-Banks-Must-Pay-Up-to-bloomberg-2474608812.html?x=0&sec=topStories&pos=1&asset=&ccode= |
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bimetalaupt
Senior Member
Joined: Oct 9, 2011 20:29:23 GMT -5
Posts: 2,325
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Post by bimetalaupt on Aug 24, 2011 10:29:57 GMT -5
Axel Merk's thought on the EURO and why it has done well.. Lack of M1!! The botton line is the PIIGS and not looking at the real core problem..Total entitlement debt.. Germany has gone from 90% replacement income to Social Retirement to 42%.. the PIGS have not!( exception is Ireland)!Where will more money come from to refinance the UCB?? Just a thought, Bruce  Nevertheless, the euro was rallying vs. the dollar, and is expected to keep rallying into Friday's Jackson Hole conference. The euro continues to defy renewed speculation the single-currency is not long for this world. "The euro is breaking down and the process of its breaking down is creating very considerable difficulties in the European banking system," former Fed Chairman Alan Greenspan said today in Washington, Bloomberg reports. There's plenty of problems in the eurozone but the euro's relative strength makes perfect sense to Axel Merk, president of Merk Investments and manager of the Merk Hard Currency Fund, which is the top-performer in its class for the past 3- and 5-year periods, according to Morningstar. finance.yahoo.com/blogs/daily-ticker/europe-crisis-axel-merk-remains-bullish-euro-153932183.html |
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Post by jarhead1976 on Aug 24, 2011 10:39:15 GMT -5
1.2 trillion in secret loans From the FED... "The Federal Reserve's unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money. The largest borrower, Morgan Stanley, got as much as $107.3 billion, while Citigroup Inc. took $99.5 billion and Bank of America Corp. $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress. bloom.bg/qdCDuG#ooid=oxeXlxMjpO1fl5E4YuIP0yPylTZExZ-o |
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Post by jarhead1976 on Aug 24, 2011 10:39:52 GMT -5
This message has been deleted. duplicate post
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bimetalaupt
Senior Member
Joined: Oct 9, 2011 20:29:23 GMT -5
Posts: 2,325
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Post by bimetalaupt on Aug 24, 2011 10:57:51 GMT -5
1.2 trillion in secret loans From the FED... "The Federal Reserve's unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money. The largest borrower, Morgan Stanley, got as much as $107.3 billion, while Citigroup Inc. took $99.5 billion and Bank of America Corp. $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress. bloom.bg/qdCDuG#ooid=oxeXlxMjpO1fl5E4YuIP0yPylTZExZ-oJarhead,  Good point ---K4U.. I also emailed then author and re-enumerated the fact that the Federal Reserve made a ton of money  in these actions.. None of the loans went bad!! I have not heard back. The Federal Reserve is the largest and most profitable bank in the world.The profits and Equity is owned by the banks in America!! Just a thought, Bi Metal Au Pt  and for me...  I just could not resist the Temptation.. Picture is Paul Moritz Warburg.. Ousted from the family business of Moses Moritz Warburg & Company he came to America and started the Federal Reserve!! |
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Post by jarhead1976 on Aug 24, 2011 11:14:49 GMT -5
Insurance rates go up with the risk. These institution were in deep trouble and the amount of money loaned to foreign owned banks was surprising.
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