Posts Tagged ‘excessive debt’

Merkel Tells Obama To Stuff It

Merkel Tells Obama To Stuff It

Courtesy of Karl Denninger at The Market Ticker 

This ought to get interesting….

Referring to the G20 summit in Canada next weekend, Merkel said in a videotaped message that "we are going to discuss when to quit the phase of short-term measures and go on to lasting budget consolidation."

Such a move was "urgently necessary, in the view of the Europeans and particularly of Germany," she said.

Obama urged the world’s leading economies Friday to avoid scaling back government spending too quickly or risk derailing the global recovery.

Heh heh heh….

Oh Mr. President?  Yes, you Mr. Obama.

Chancellor Merkel appears to have figured out the meaning of this graph:

That is, more than two years of attempting to force credit creation to expand, thereby once-again restarting the Ponzi Scheme, has failed.

All further exercises in this vein will do is make the damage worse, exactly as I said it would in 2007 initially.

"Our highest priority in Toronto must be to safeguard and strengthen the recovery," Obama said in the letter dated June 16, but released Friday amid concerns about the pace of the global recovery.

There is no recovery Mr. President.  There has not been and will not be until the speculators and banksters that have taken on excessive debt, either as creditors or debtors, are forced to disgorge same.

The below chart lays forth the wasteland you are creating:

You (and you predecessor, George Bush) have replaced 11% of final demand (in the form of GDP) with deficit spending.  You have no credible plan to stop doing it as final private demand has failed to rebound, just as it did not in the 2003-2007 years and thus George Bush was unable to withdraw his bogus "stimulus" measures.

You are now trapped in an exponentially-deteriorating credit picture Mr. President.  The only question remaining is whether you and your idiot "advisors" will recognize this and act in time to prevent the destruction of the political system of The United States.

There is no means by which you can avoid the pain and adjustment that has to be taken.  It is not possible, mathematically, to continue to increase the total systemic indebtedness, irrespective of the manipulations and games you attempt to pull on the body politic.

Angela Merkel and the rest of the EU have come to recognize that the…
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Greater Than One in Four FDIC Insured Institutions are Unprofitable; Bank Problem List at 15 Year High

Greater Than One in Four FDIC Insured Institutions are Unprofitable; Bank Problem List at 15 Year High

banksCourtesy of Mish

The second quarter 2009 Quarterly Banking Profile has some interesting charts and facts that inquiring minds will be interested in.

Insured Institution Performance

  • Higher Loss Provisions Lead to a $3.7 Billion Net Loss
  • More Than One in Four Institutions Are Unprofitable
  • Charge-Offs and Noncurrent Loans Continue to Rise
  • Net Interest Margins Show Modest Improvement
  • Industry Assets Decline by $238 Billion
  • The Industry Posts a Net Loss for the Quarter

The Industry Posts a Net Loss for the Quarter

Burdened by costs associated with rising levels of troubled loans and falling asset values, FDIC-insured commercial banks and savings institutions reported an aggregate net loss of $3.7 billion in the second quarter of 2009. Increased expenses for bad loans were chiefly responsible for the industry’s loss. Insured institutions added $66.9 billion in loan-loss provisions to their reserves during the quarter, an increase of $16.5 billion (32.8 percent) compared to the second quarter of 2008. Quarterly earnings were also adversely affected by writedowns of asset-backed commercial paper, and by higher assessments for deposit insurance.

Almost two out of every three institutions (64.4 percent) reported lower quarterly earnings than a year ago, and more than one in four (28.3 percent) reported a net loss for the quarter. A year ago, the industry reported a quarterly profit of $4.7 billion, and fewer than one in five institutions (18 percent) were unprofitable. The average return on assets (ROA) was -0.11 percent, compared to 0.14 percent in the second quarter of 2008.

Net Charge-Off Rate Sets a Quarterly Record

Net charge-offs continued to rise, propelling the quarterly net charge-off rate to a record high. Insured institutions charged-off $48.9 billion in the second quarter, compared to $26.4 billion a year earlier. The annualized net charge-off rate in the second quarter was 2.55 percent, eclipsing the previous quarterly record of 1.95 percent reached in the fourth quarter of 2008.

The $22.5 billion (85.3 percent) year-over-year increase in net charge-offs was led by loans to commercial and industrial (C&I) borrowers, which increased by $5.3 billion (165.0 percent). Net charge-offs of credit card loans were $4.6 billion (84.5 percent) higher than a year earlier, and the annualized net charge-off rate on credit card loans reached a record 9.95 percent in the second


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Zero Hedge

Dow Opens Above 26,000 After Fastest 1000-Point Surge In History

 

Dow Opens Above 26,000 After Fastest 1000-Point Surge In History

Courtesy of Zero Hedge

Well that escalated quickly...

Having surpassed 25,000 at the open on January 4th (surging from 24k to 25k in a record 23 days), The Dow Jones Industrial Average has opened today above 26,000...

Crossing that 1000-point gap in a record-smashing 7 trading sessions...

And more accurately, this is the most-aggressive rise in The Dow ever... triple the pace of the 24k to 25k advance...



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ValueWalk

Why did the 'best ideas fund', established by the Capital Group, continually underperform?

By The Acquirer's Multiple. Originally published at ValueWalk.

Here’s a great presentation by Mohnish Pabrai to the folks at Google. During the presentation Pabrai relays a story about a time he had dinner with a small group at the home of Charlie Munger. During the dinner Munger posed a question to the group:

Why did the ‘best ideas fund’, established by the Capital Group, continually underperform?

]]> Get The Full Series in PDF

Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

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Phil's Favorites

Breaking Up Tech: Indexes doing what the economy won't

 

Breaking Up Tech: Indexes doing what the economy won’t

Courtesy of 

Nobody wants to say this but I will.

The technology sector has gotten so big, so pervasive and powerful, that the stock market index creators had to break it up. Because the monopolist powers of these corporations off of the stock market and in the real world have not been checked by natural competitive forces or government intervention.

The big names in tech get bigger and bigger every year, their influence extending into all facets of modern life, no industry left untouched by the effects of this.

Thi...



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Chart School

Weekly Market Recap Jan 14, 2017

Courtesy of Blain.

After 3 days of mild “rest” – and the first down day of the year (!!) for the S&P 500, bulls came back with bells on Thursday and Friday, driving indexes to record highs yet again.  This is starting to get “parabolic”… some shades of the type of things we saw in 1999.  (See the S&P 500 and NASDAQ charts below)  The S&P 500 gained 1.6% and the NASDAQ 1.7% for the week.

“This reminds me of January 2000,” said Kent Engelke, chief economic strategist, at Capitol Securities Management, which manages $4 billion in assets, referring to the nearly unceasing climb to records for stocks and the unease it can inspire.  “It’s scary, the unrelenting advance,” he added.

“The move isn’t about fundamentals...



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Insider Scoop

A Peek Into The Markets: U.S. Stock Futures Climb Ahead Of Wells Fargo Earnings

Courtesy of Benzinga.

Pre-open movers

U.S. stock futures traded higher in early pre-market trade, ahead of earnings from Wells Fargo & Co (NYSE: WFC). Data on retail sales for December and the Consumer Price Index for December will be released at 8:30 a.m. ET. Data on business inventories for November will be released at 10:00 a.m. ET. Philadelphia Federal Reserve Bank President Patr...



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Digital Currencies

Why unregulated cryptocurrencies could trigger another financial crisis

 

Why unregulated cryptocurrencies could trigger another financial crisis

Courtesy of Iwa SalamiUniversity of East London

Shutterstock

The price of bitcoin hit $17,000 late last year and – although the cryptocurrency has plunged since then – there are signs that an absence of regulation can hurt investors and trigger the next fin...



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Biotech

How Alzheimer's disease spreads throughout the brain - new study

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

 

How Alzheimer's disease spreads throughout the brain – new study

Courtesy of Thomas E CopeUniversity of Cambridge

Harmful tau protein spreads through networks. Author provided

Alzheimer’s disease is a devastating brain illness that affects an estimated 47m people worldwide. It is the most common cause of dementia in the Western world. Despite this, there are currently no treatments that are effective in curing Alzheimer’s disease or preventing its relentless progressio...



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Mapping The Market

Trump Admin Bans CDC From Using Words Like 'Science-Based,' 'Diversity'

By Jean-Luc

These are the policies of a theocracy, not a modern democracy:

Trump Admin Bans CDC From Using Words Like ‘Science-Based,’ ‘Diversity’

The Trump administration has prohibited the Centers for Disease Control and Prevention (CDC) from using words like “science-based,” “diversity,” and “transgender” in their official documents for next year’s budget, according to the Washington Post.

Senior CDC budget leader Alison Kelly met with the agency’s policy analysts on Thursday to announce ...



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Members' Corner

An Interview with David Brin

Our guest David Brin is an astrophysicist, technology consultant, and best-selling author who speaks, writes, and advises on a range of topics including national defense, creativity, and space exploration. He is also a well-known and influential futurist (one of four “World's Best Futurists,” according to The Urban Developer), and it is his ideas on the future, specifically the future of civilization, that I hope to learn about here.   

Ilene: David, you base many of your predictions of the future on a theory of historica...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

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Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.

CLICK ON CHART TO ENLARGE

EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...



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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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