Archive | Financial Crisis

Is Deutsche Bank the next Lehman?

Looking back at the Lehman Brothers collapse of 2008, it’s amazing how quickly it all happened.  In hindsight there were a few early-warning signs,  but the true scale of the disaster publicly unfolded only in the final moments before it became apparent that Lehman was doomed. First, for purposes of drawing a parallel, let’s re-cap the events of […]

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Never go full retard: Bloomberg calls for “helicopter money”

Clive Crook, a member of Bloomberg View’s editorial board, has gone where the sensible have long feared to tread.  In today’s Bloomberg View, he recommends stimulating the economy by just giving everyone free money. Crook also may have set a Bloomberg View record for getting everything so wrong, so quickly.   By his third sentence Clive is clearly lost. […]

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Mega-banks get hit with mega $250 billion lawsuit. Is the party over?

It’s one thing when angry homeowners attempt to stare-down $1000/hr corporate lawyers over fraud-related losses during the housing bust.  The analogy of bringing a squirt-gun to a gun-fight comes to mind. But it’s quite another when a group of heavy-hitters led by BlackRock and PIMCO fire off a massive $250 Billion lawsuit in the New York State Supreme […]

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Must Watch: Warren destroys Yellen’s position on “Too Big to Fail”.

This dialogue hasn’t received nearly as much attention as it deserves. As we predicted this morning, Warren would grill Yellen over TBTF.  And Yellen would do little more than say the Fed is “looking into it”. Sure enough, Yellen repeatedly attempted to deflect the issue.  Warren was having none of it. This single clip summarizes the entire […]

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NotQuant’s response to Mish’s Response to NotQuant

Yesterday, we read Mike Shedlock’s response to our piece Is the Fed Going to Initiate A Controlled Collapse with interest. He called our piece “complete silliness” and then attempted to deconstruct our logic with this silliness: Mish wrote: Does the Fed know the difference between an asset bubble and my mom’s tuna casserole? Does the Fed know the […]

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What would mainstream economists have advised Bernie Madoff to do?

Just over two weeks ago, Bernie Madoff’s accountant finally plead guilty to fraud after six years of defending himself. He was sentenced to 30 years in prison at the age of 78. While he admits to falsifying records, to this day he claims he had no idea that Madoff was running a ponzi scheme. The prosecution has called […]

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European Bank Kabuki Preview: Spoiler alert!

European banks are bracing themselves for another slap on the wrist and stern language, as the next round of sham “stress tests” begins.   We’re not quite sure who exactly is stressed, but our inkling is that it should be the taxpayers.  Thankfully, the ECB is hoping to avoid actually penalizing any banks by “prepping” them for the […]

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Europe’s solution: Would you believe $1.4 TRILLION in free money for banks?

Remember at the “end” of the financial crisis when everyone from Timothy Geithner to Barack Obama to assorted members of British Parliament promised that “Never again” would anyone need to hand trillions of dollars to bail-out banks?   That was just a one time thing, right? We’re all past that now. Right? Wrong.  Well, at least not […]

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Central banks promise to be less clear

So much for the era of central bank clarity.  That went by quickly.  Today,  it looks like we will be returning to a Greenspan-like era of riddles, double-speak and meaningless gobbledygook.  Fed utterances will once again require “parsing” by “Fed experts” as central-bank chiefs return to “telegraphing” their intentions to a mystified media. The world’s major central banks […]

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Is the market about to crash? Rolling returns say “yes”.

ZeroHedge is running this chart at the moment.  It’s a nice visualization and certainly food for thought.   For the record, we agree that it sure looks ugly.   Cumulative / consecutive returns show the market entering the historic “crash-zone” right about now.   It’s important to note however, that this visualization would have done little to predict […]

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What if we discussed food and healthcare inflation like we discuss housing?

“Economists  announced the positive news that both food and healthcare prices are up strongly today showing a promising growth trend since the beginning of the year.   The malaise in food prices is now seen as over, and positive growth is indicated for the next two quarters.   The rise in healthcare prices is particularly robust, as […]

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