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Rising COVID cases, falling economy

Tom Spencer

Since the start of February this year, the Fed has expanded its balance sheet by more than $2.4 To put that in context, the Fed was created in 1913, and its total balance sheet assets only reached $2.4 trillion in assets, but only 2 months to achieve the same amount of balance sheet expansion this year.

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Mish Fined 8,000 Euros for Quoting French Blog

MishTalk

Banks; Global Financial System is Bankrupt. The effects of a system that ''encourages excessive financial leverage''. trillion balance sheet is leveraged nearly 49-to-1. As a group, these three banks have some €4 trillion in assets on their balance sheets, supported by €129.3 By contrast, J.P. billion (€489.9

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Draghi Pressures ECB to Buy "Junk-Rated" Loan Bundles of Greece and Cyprus

MishTalk

On September 4, ECB President pulled out a financial bazooka including a pledge to build up the ECB''s balance sheet by another €1 trillion. In this case, the stench on Greek bank balance sheets will not go away. Instead, stench will also appear on the balance sheet of the ECB.

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Another Unbelievable Stress-Free Test; Whitewash Math and Deferred Tax Assets

MishTalk

Roughly one in five of the euro zone''s top lenders failed landmark health checks at the end of last year but most have since repaired their finances, the European Central Bank said on Sunday. I don''t feel a whole lot more reassured about the health of the banking system today than last week." €48 The 130 banks account for 81.6

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Pettis on Strains in China's Banking System; Avoiding the Fall

MishTalk

Next year will be a very important year for China because possible strains in the banking system and the intensity with which the reformers present their case will give us a better sense both of how much debt capacity the country retains and of how well positioned Xi Jinping and his allies are to implement the needed reforms.

Banking 58
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2008 Financial Crisis – Causes and historical context

Tom Spencer

Many an economics and finance course later, I see that the layers of complexities to the 2008 financial crisis are innumerable. MBS were being used as collateral for interbank trading, thus essentially underpinning the entirety of the financial system in the US. We were shocked, how could no one have seen the collapse coming?

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Laughable Eurozone Banking "Non-Union"; Expect Disorderly Breakup

MishTalk

Gunnar Hökmark, the lead negotiator for the parliamentary side, said: “ We now have a strong bail-in system which sends a clear message that bank shareholders and creditors will be the ones to bear the losses on rainy days, not taxpayers. It is a single system under law. Its resolution system will only be up and running from 2016.

Banking 60