If the case against Goldman Sachs was a one off it would be an ugly ‘bad apple’ story. It would be quoted by bankers as a cautionary tale and evidence of their own horror at such ‘isolated’ bad practice. No doubt perpetrated by some ‘rogue traders’. But it isn’t a one off. There are currently …
The SEC have filed a suit against Goldman Sachs which paints a picture of the banks’ operation, so morally repugnant it is almost cartoonish. Here’s what the SEC alleges they did. You tell me if it shows the Goldman Sachs bankers to be as morally degenerate as I think they are. The Goldman bankers were …
I GOT THIS ONE WRONG! The down grade on that day was, I now realise, to National Bank of Greece’s debt, the country’s biggest private bank and most of its other big banks as well. I’m afraid I read National Bank of Greece and mistook this for the central bank. Bad mistake! SORRY! However, it …
Could Greece have stepped on the trip wire today? Titlos again. Read More »
Commerzbank is pulling its repo’s from Greek Banks. Not a headline to set the pulse racing. Though it should. Repo agreements between banks are the essential liquidity that keeps banks running day to day. Commerzbank is one of the largest repo counterparties for Greek banking. Not only is it withdrawing its repo agreements but dumping …
I’m going away for a week and am unlikely to have time to write. So before I go I thought to mention a couple of things to think about. First I am sure you’ve noticed the price of Petrol/Diesel. The all time crisis high in 08 was 119p/Litre for unleaded. At that time crude was …
The political landscape we are used to is left versus right, Labour v Tory, Democrat v Republican, Marxist v Capitalist. I believe the real division, today however, is starker, simpler and clearer. It is People versus Finance. And in this division it is not at all clear that any of the established parties are on …
April 1st the FED stops buying (MBS) Mortgage Backed Securities. It has been buying them up relentlessly since January ’09. So far $1.25 Trillion’s worth. What happens when they stop? The way it used to work was banks gave out a mortgage. The banks then needed/wanted to sell-on those mortgages, in order to get more …
What happens when the FED stops buying mortgages? Read More »
Greece is in trouble and its getting worse. The bonds it only-just managed to sell Monday, got dumped Tuesday. So many of Monday’s buyers wanted rid of them one day later, they were selling them for less than they paid for them. For those who want to know the ‘yield’ (It’s like the interest but …
You know who I think is behind the inexorable rise in the stock markets, despite such a rise making NO SENSE AT ALL in terms of the underlying fundamentals of sales, consumption, debt levels, profit and dividend? – the Borg! No really. I think the Borg are working at the Proprietary Trading desks of the …
This year alone Greece has to sell €54B AND refinance another €20B. Yesterday the Greek government offered just €5B in seven year bonds – to test the water. The bonds offered 6% which is twice the rate a bond buyer would get if she bought German bonds. So as long as you think euro land …
Euroland – they’re not green shoots they’re Tulips. Read More »
