Posts Tagged ‘credit rating cartel’

Chinese Banks Face Default Risk on 23% of $1.1 Trillion Loans; Chinese Rating Agency Criticizes Moody’s, Fitch, S&P

Chinese Banks Face Default Risk on 23% of $1.1 Trillion Loans; Chinese Rating Agency Criticizes Moody’s, Fitch, S&P

Courtesy of Mish 

Here is an interesting pair of stories at odds with each other, the first article is about problem loans at Chinese banks, the second is about a rating agency mud fight.

Bloomberg reports Chinese Banks See Risks in 23% of $1.1 Trillion Loans

Chinese banks may struggle to recoup about 23 percent of the 7.7 trillion yuan ($1.1 trillion) they’ve lent to finance local government infrastructure projects, according to a person with knowledge of data collected by the nation’s regulator.

About half of all loans need to be serviced by secondary sources including guarantors because the ventures can’t generate sufficient revenue, the person said, declining to be identified because the information is confidential. The China Banking Regulatory Commission has told banks to write off non-performing project loans by the end of this year, the person said.

The nation’s five-largest banks, including Agricultural Bank of China Ltd., plan to raise as much as $53.5 billion to replenish capital after the sector extended a record $1.4 trillion in credit last year.

“In China now, it is the same as the people getting loans in Phoenix here in the U.S. three years ago,” said Vikas Pershad, chief executive officer of Chicago-based Veda Investments LLC. “People who want money get money, and then they all lose track of it.”

Local governments set up the financing vehicles to fund projects such as highways and airports due to limits on their ability to directly borrow money. The central government this year restricted borrowing on concern money isn’t being used for viable projects.

“The issue is symptomatic of the way the stimulus package was rolled out in 2008,” said Nicholas Consonery, Asia specialist at the Eurasia Group. “It is difficult for local governments to finance these projects. It is written under the Chinese constitution that local governments cannot offer their own debt.”

Chinese Rating Agency Criticizes Moody’s, Fitch, S&P

The Financial Times reports China rating agency condemns rivals

The head of China’s largest credit rating agency has slammed his western counterparts for causing the global financial crisis and said that as the world’s largest creditor nation China should have a bigger say in how governments and their debt are rated.

“The western rating agencies are politicised and highly ideological and they


continue reading


Tags: , , , , , , , , , , , ,




 
 
 

ValueWalk

For Rioters - Life In Prison Or Civil Law Suits

By JOHN F. BANZHAF. Originally published at ValueWalk.

For Rioters – Life in Prison or Civil Law Suits, Happy Medium Between Tiny Fines and Lengthy Prison Sentences

Q2 2020 hedge fund letters, conferences and more

Rioters Are Facing Life Sentences

WASHINGTON, D.C. (August 10, 2020) -  Some rioters are facing life sentences in Salt Lake City, and other rioters are facing felony charges in additional cities including Louisville, Eugene, Grand Rapids, Austin, Richmond, and elsewhere.

While some may say that it's about time, since misdemeanor arrests and tiny fines haven't deterred rioters from burning do...



more from ValueWalk

Zero Hedge

Lebanon's Prime Minister To Step Aside, Clearing Way For 3rd Government In Less Than A Year

Courtesy of ZeroHedge View original post here.

As protesters in Beirut storm government buildings, part of a "tsunami of rage" triggered by the historic and deadly explosion that decimated the capital city's vital and historic port less than a week ago, ...



more from Tyler

Phil's Favorites

Trump's Executive Orders Sow Confusion and Illusions

Courtesy of Pam Martens

By Pam Martens and Russ Martens: August 10, 2020 ~

President Donald Trump has taken to governing from the 19th Hole in the midst of the worst economic crisis since the Great Depression. On Saturday, speaking from the clubhouse of the Trump National Golf Club in Bedminster, New Jersey, Trump announced four executive actions that he promised would “take care of, pretty much, this entire situation,” meaning economic relief for struggling workers ...



more from Ilene

Kimble Charting Solutions

Commodities Rally Runs Into Big Breakout Test

Courtesy of Chris Kimble

After a 9 year tail-spin, Commodities are starting to show life in 2020.

Precious metals have been very strong, and commodity bulls are hoping the grains (and energy) follow suit.

In today’s chart, we look at a long-term “monthly” view of the Thomson Reuters Equal Weight Commodity Index.

As you can see, the index has been in a rising channel marked by each (1) for the past 50 years. The 9-year downtrend came near channel support while retesting the 2009 lows at (2).

The rally in 2020 has commodity bulls feeling good again. The Commodity Index is now testing the 9...



more from Kimble C.S.

Biotech/COVID-19

A second COVID-19 wave? Here are 6 lessons from the first

 

A second COVID-19 wave? Here are 6 lessons from the first

A man wearing a face mask to curb the spread of COVID-19 walks past a temporary Pride art installation in Vancouver on Aug. 3, 2020. THE CANADIAN PRESS/Darryl Dyck

Courtesy of Loren Falkenberg, University of Calgary and Jillian Walsh, University of York

As COVID-19 spread across the globe, governments looked to epidemiologists to slow its transmission.

Without a vaccine, large-scale testing capacity and sufficient critical-care beds, epidemiologists pushed...



more from Biotech/COVID-19

The Technical Traders

Melt-Up Continues While Metals Warn of Risks

Courtesy of Technical Traders

What a week for Metals and the markets, folks. The Transportation Index is up nearly 4% for the week.  The Dow Jones Industrial Average is up over 3% for the week.  Silver is up over 14% and reached a peak near $30 (over 23%).  Gold is up over 2.5% and trading above $2025 right now – with a peak price level near $2090.  If you were not paying attention this week, there were some really big moves taking place.

MELT-UP WITH HIGH RISKS – PAY ATTENTION

Overall, our research team believes the current “melt-up” price action is likely to continue as global investors continue to believe the US Fed will do everything possible to save the...



more from Tech. Traders

Digital Currencies

Raoul Pal: "It May Not Be Worth Owning Any Asset Other Than Bitcoin"

Courtesy of ZeroHedge View original post here.

Authored by Turner Wright via CoinTelegraph.com,

Raoul Pal, CEO and founder of Real Vision, says Bitcoin may soon become his only asset for long-term investments.

image courtesy of CoinTelegraph ...



more from Bitcoin

Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Sunday, 29 March 2020, 07:00:37 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: Silver Shorts Are In a Bind | Ted Butler youtu.be/qQc0AoJp-Q8



Date Found: Monday, 30 March 2020, 05:21:45 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: 5 Questions From You for Luke Gromen youtu.be/nVZD_fuxbQE


...

more from Chart School

Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



more from Lee

Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



more from Our Members

Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

http://www.insidercow.com/ more from Insider

Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

...

more from Promotions

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

more from M.T.M.





About Phil:

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...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.