Wednesday, September 18, 2013

Excess indeed,nowhere near enough,bankers have spent years ruining their sheep,sorry customers.We must have huge excess how can you expect a ruthless,calculating,grasping,manipulating old banker to get by on the odd million.No way,he needs far more than that which is why our dear old " honest " politicians and regulators need to work a damned sight harder finding nothing wrong in fractional reserve theft,er I mean a banking system.Its just not good enough to find 99% of it fraudulent,we must print Trillions,push house prices up so far it will take 5 lifetimes to be purchased and ensure nobody legally retires,and get that  % down to 0%.
In short the current Excess is nowhere near enough.
Yours,a disgruntled banker who thinks a maximum of 2 years of totally stripping his clients,the Government,the Taxpayer and anyone else in the entire world who is stupid enough to believe in the current financial system should be more than enough to retire forever.
The share of “leveraged loans” used by the weakest borrowers in the syndicated loan market has jumped to an all-time high of 45pc, ten percentage points higher than the pre-crisis peak in 2007-2008.




The BIS said investors are snapping up “covenant-lite” loans that offer little protection to creditors, as well as a form of hybrid capital for banks known as CoCos (contingent convertible capital instruments) that switch debt into equity if bank capital ratios fall too low. While CoCos help shield taxpayers from losses in a banking crisis by leaving private creditors with more of the risk, the recent appetite for such an instrument is also a warning sign.

The BIS said interbank credit to emerging markets has reached the “highest level on record” while the value of bonds issued in off-shore centres by private companies from China, Brazil and other developing nations exceeds total issuance by firms from rich economies for the first time, underscoring the sheer size of the debt build-up in Asia, Latin Africa, and the Mid-East.

Claudio Borio, the BIS research chief, said the ructions in emerging markets since the Fed turned hawkish in May is a warning to investors that they must tread with care. “Global financial markets have reacted very strongly. If there were any doubts about the strength of international policy spillovers, they have now been put to rest,” he said.
Anyone with a dozen interconnected brain cells knows there's a global economic meltdown on the way that will make the 30s 'Great Depression' look like a walk in the park.
No doubt, it'll be started by a derivatives crisis, just like the last one. There has to be a global ban on derivatives, even the 'socially useful' ones.

4 comments:

Anonymous said...

On Sunday the Germans will hold a general election. Merkel is hoping to retain power by forming a coalition government. However it seems there is a slight snag as the Germany anti European party, like UKIP, seem to be about to spoil the party by popping Markel's balloons . The news that Greece will need more German taxpayers money and that Portugal may follow suit has cheesed off many of the German electorate. In addition the German banks have flatly reused to fall in line with the suggestion that a European banking control body should be centred in Staatsburg France which should regulated every bank in Europe and that will screw up the current German cunning plan to base the regulators at the European Central Bank in Frankfurt. So no more money from the German tax payers to bail out the Euro Zone and no more cash from the central banks till the French and German bitch slapping contest is resolved. NO cash wait for the crash .

Anonymous said...

Doctors, teachers and other workers are going on strike across Greece in protest at planned civil service cuts and forced transfers.

The main public sector union has called a 48-hour stoppage, and a partial private-sector strike is also planned.

The trigger is a plan to place 25,000 civil servants on a reduced salary before being redeployed or dismissed, with 15,000 jobs to go by 2015.

The strike comes as Greece's international creditors meet in Athens.

The job cuts are part of bailout conditions for the next 1bn euro (£0.8bn) tranche of Greece's loan set by the so-called lending troika - the European Commission, the European Central Bank and the International Monetary Fund.

So far Greece has received two aid packages totalling about 240bn euros. It will need about 10bn euros more to cover a funding gap.

'Older staff at risk'

Public sector workers are due to hold rallies across Greece on Wednesday and Thursday, urged by the union ADEDY.

It is the first time under the Greek constitution that public sector workers will lose their jobs and workers say older, vulnerable staff will be targeted, adding to record unemployment of almost 28%.

But the government says it must reform a public sector that has for decades grown too large.

Prime Minister Antonis Samaras says the deficit will soon be wiped out and his country could be back to pre-crisis levels in six years.

However the BBC's Mark Lowen in Athens says that optimism is still not filtering down to the streets; the jobless rate keeps rising and there is no sign of economic growth.

Monday saw the start of a five-day rolling strike over the cuts, by teachers at state high schools.

A number of striking school guards clashed with riot police outside the Ministry for Administrative Reform in Athens.

Anonymous said...

The whole point of the Common Market is to remove trade barriers and to facilitate doing business across borders. This can be accomplished with an EFTA which is, in effect, what we have.

The trouble is being caused by the Eu itself and those who, like Dave Cameron and the liberal left, want the power of the Eu extended (from the "Urals to the Atlantic"). There is no purpose in removing national independence in order to trade. Our largest single trading partner is the US and we do not implement the laws passed by Congress any more than we implement the laws of Commonwealth nation with whom our trade is expanding and in surplus.

So lets end this charade of a Federal Union of Cooperative Korps (the Eu) and simplify everything back to an EFTA. Tera down the Eu and save billons for us all and bury the whole vision of the super state because few want it as the article says (15% of businesses in favour).

Dave is dead set against our leaving the Eu and as he is highly unlikely to be re-elected in 2015 we need to get behind UKIP as it has been their consistent policy to push for European cooperation through EFTA and for the removal of the top tier of government that costs us billions and, almost, our political and judicial freedom.

Anonymous said...

Fitch warned that China's credit-fuelled expansion continued unabated, despite talk of contracting credit.

"To the extent people think there's deleveraging underway, or growth is coming back in a strong way - nothing has really changed," said Charlene Chu, senior director at Fitch Ratings. "The bottom line is we continue to be in the middle of this very large credit boom."

According to Fitch's calculations, annual new credit in China climbed to 21 trillion yuan (£2.15 trillion) in August, up from 19 trillion yuan in August 2012, the fifth year that net new credit has exceeded more than one-third of GDP.

"It is difficult to see how a situation in which credit – already twice as large as GDP – continues to grow by twice as fast can be sustainable indefinitely," the report said.

The rating agency calculated that even in a positive scenario - where credit growth slowed by 2 percentage points to 12pc annually, while nominal GDP held steady at 11pc, the country's credit-to-GDP ratio would rise to 250pc by the end of 2017, almost double pre-crisis levels in 2008.