Posted on 02/11/2016 7:39:00 PM PST by TigerLikesRooster
Asia markets extend rout as Nikkei plunges 5.3%
Saheli Roy Choudhury | @sahelirc
Markets in Asia dropped sharply on Friday, with the Nikkei tumbling, after a sell-off on Wall Street as oil remained volatile and concerns about how central banks' easing measures will affect banks' earnings persisted.
"The idea that central banks are now fully targeting the interest rate structure and putting a gun to domestic banks heads in a fight to stoke credit growth is in no way an equity friendly story," wrote Chris Weston, chief market strategist at spreadbetter IG, in a morning note. The Bank of Japan blindsided markets on January 29 by cutting its benchmark rate into negative territory in a move that's sparked concerns over banks' earnings.
Japan's Nikkei 225, which reopened after a public holiday on Thursday, dropped 5.34 percent, on course to fall for seven of the past eight sessions.
(Excerpt) Read more at cnbc.com ...
TURN THOSE MACHINES BACK ON!
ZIRP wasn’t good enough but NIRP will do the yob.
UPDATE 1-Deutsche Bank default insurance costs leap to new highs
By Claire Milhench
Feb 11 The cost of insuring Deutsche Bank debt against default leapt on Thursday, while costs for other European banks also climbed as their shares plunged to multi-year lows.
Credit default swaps (CDS), used to insure debt, now imply a 24.5 percent probability that Germany's biggest bank will default on its subordinated, or junior, debt, according to data provider Markit, while on senior debt the probability has risen to 17 percent.
The surge in CDS comes amid a heavy sell-off in the shares of Deutsche Bank and other European lenders, which are facing questions about their ability to cope with slowing global economic growth and persistently low or sub-zero interest rates.............
Thank you, dennisw.
We are in a heap of trouble.
Not long ago we hear a little on the fed calling on banks to stress test negative interest. Then a little on the legality. Has anyone caught the outcome of those? I think it has as much to do with inflation not propping up wall st. as it does anything else. What happens when both take off? I’m a little concerned that more aren’t concerned about this. Side note I realize John Q. Public already feels the inflation.
A 5% loss in one day? Wow, are things going south? Is it time to stock up on canned goods and ammo?
Thank you, T L R.
There is no good economic news out there.
If you can look at the current and proposed land scape in the global as well as domestic economy I have to wonder if you can safely use a calculator. Are truly suggesting there are no problems on a grand scale? If so please tell me why I am wrong as I hope I am.
End Time Bible Prophecy Ping
Harbinger/Shemitah
Year of the Shemitah. The principle sabbatical years, of the land.
Revelation 13 Mark of the Beast.
We are marching towards one world currency, and the Mark of the Beast.
To be on the End Time Bible Prophecy Ping List, FReeport mail me or Saveferris
-21.11% Year-to-Date
http://money.cnn.com/data/world_markets/nikkei225/
I have been carefully watching the daily performance of the Dow, S&P, and NASDAQ vis a vis the foreign markets for several weeks now. Our markets always seems to “rally” later in the afternoon after plunging significantly at the opening, but they also don’t seem to fully reflect the reality that is facing the entire global financial system. The afternoon “rallies” are not a one off event - they occur repeatedly. It happened again yesterday, even though the economic news was terrible. Yesterday, the Dow jumped, and it was stated that the reason was some Saudi oil minister smiled before the cameras with some happy talk. It is madness. But the larger issue is our markets are being manipulated, which means when the real crash comes, the fall will be even more painful and deeper.
You are such a nice poster I am going to clue you in. In fact you might know this already. In a super deflationary downdraft there will be bank failures and semi- bank failures meaning your money cannot be withdrawn. And when Janet Yellen talks about negative interest rates we are talking deflation.
Only 1% of all US Money is green cash Federale Reserve Notes and US coinage. These two are the money that will not go pfttt and evaporate in a serious deflation. Why? Because they are physical and don’t depend on any digital bllsht to exist. They are not blips on hard drives. Gold is OK but will lose some value in a deflation. Green paper money will be highly coveted. It will be recognized and accepted everywhere as credit cards get dicey.
And more deflation...... Deutsche Bank is in serious trouble
...is our markets are being manipulated...
It’s an amazing thing to watch.
BUYING OPPORTUNITY! /sarc
It is madness. But the larger issue is our markets are being manipulated, which means when the real crash comes, the fall will be even more painful and deeper.
^ This + 1
Yeah, I’ve noticed the same thing. Of course, QE is a form of manipulation too. And it is an open secret that the Government has a Plunge Protection Team. The team consists of the Secretary of the Treasury, the Chairman of the Board of Governors of the Federal Reserve, the Chairman of the SEC and the Chairman of the Commodity Futures Trading Commission.
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