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Old 06-23-2018, 03:56 AM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,676
Eurozone debt

The consumer spends less and less. She is tapped out. The actual economy shrinks. Mergers and acquisitions increase. Historically, M&A action increases as the economy falters.
M&A is increasing. The yield curve has inverted. Both of these are indicators of an impending crash. It is hard to say just how much the capital inflows will change the dynamic.

German bankers loaned to Greece knowing that Greeks were perennial deadbeats. When Greece couldn't pay, Merkel and Schäuble bailed out the banks embraced the Greek debt as being debt owed to the German State. Germany put Greece over a barrel and rogered them well. This has been profitable.

"They suffer from low profitability and carry an estimated total bad loan exposure of around 759 billion euro, which accounts for roughly 30 per cent of their equity capital."
"While US bank stocks are up 24 per cent since the beginning of 2006, the index for euro-area bank stocks is still down by around 70 per cent. Perhaps most notably, ’Germany’s two largest banks, Deutsche Bank and Commerzbank, have lost 85 and 94 per cent, respectively, of their market capitalization."
Of course they lost capitalization. What would you do if your bank faced a "bail-in"? America has plenty of bad loans but, they are "hidden" in the GSEs like Freddy and Fanny. The bad loans will blow the private banks in Europe and, the public debt in America.
The Central Banks removed ALL moral hazard and financial risk. Did it ever occur to them that this might cause bankers to run wild?

"Then there's a horrendously unexpected crash. The status quo panics, and the Federal Reserve and the Savior State rush to provide massive stimulus--tax cuts, tax rebates, more federal spending, lower interest rates, bond buying, easier lending standards, increased liquidity, and so on.

Asset prices respond to these constant injections of uppers very predictably: they leap higher as participants realize the "Fed put" is in place: the central bank will not let markets decline, so the profitable strategy is "buy the dip."

"Note that the quantity of stimulus required to "fix" the markets increases exponentially every bubble-pop. Where a sharp decline in interest rates and conventional monetary stimulus stopped the 2002 crash in its tracks and reinflated asset bubbles, the next bubble-pop crash in 2008-09 required an unprecedented range of unconventional stimulus to stop the crash and reinflate the era's third asset bubble: zero interest rates (never done before), $4 trillion in bond and mortgage purchases (never done before), ending mark-to-market pricing of financial instruments (never done before) and unlimited liquidity to the banking sector and financial markets (never done before). "

"Even if we look at the hatred poured on Trump, this is indicative of how civilization collapses. It does not matter if you agree or disagree with Trump. This sort of hatred and the personal attacks, especially led by CNN, is so destructive I fear what comes AFTER Trump. There is absolutely NO POSSIBLE WAY that anyone who would really try to help the situation will come to power. CNN has guaranteed that nobody in the right mind would dare to be president."

To the readers on the continent, you're going to get hit the worst. Brussels keeps printing to keep the European version of the blob-State well paid. Millions of paper pushers depend on the printing press.
"Keep in mind that the Federal Reserve’s balance sheet never exceeded 25% of US GDP. "
No mention of the back-door money from the PPT and ESF.
"To put €4.5 trillion in perspective, it is over 40% of the annual GDP of the 19 countries comprising the Eurozone (€11.35 trillion)."
"The ECB’s balance sheet has grown by 8.9% since this time last year, far faster than the overall Eurozone economy (2.4%),
"and by an amount far greater than the combined GDP growth of the entire Eurozone (€372 vs €278 billion). In other words, the ECB has been printing money and buying Eurozone debt roughly 33% faster than the economy of the Eurozone has been growing. As if that weren’t enough, the ECB bought significantly more bonds in the last year than the entire increase in the national debts of all the Eurozone countries combined in 2017."
"and by an amount far greater than the combined GDP growth of the entire Eurozone (€372 vs €278 billion). .

"Both public and private emerging market debt raised money in dollars. A 2% increase in interest rates could spark a sharp rise in the proportion of emerging market corporate debt issues at risk of default. This is true especially in Brazil, Turkey, and India.' 1/2 of the BRICs
The trade war has the potential to completely screw up world trade. As if that isn't enough, Trump wants to revamp GOV.;utm_medium=2
He wants more efficiency. The State specializes in inefficiency so that it can give jobs to buy votes,,, and hold down crime.

6/22 New Jersey heads for budget clash, possible shutdown – US News
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