Posted on 03/24/2023 5:49:24 AM PDT by Kaiser8408a
They give it a nice name, “quantitative easing”, yet they keep getting “qualitative easing” instead.
After a year of sanctions, we are the laughingstock of the world.
MOSCOW, March 23. /TASS/. It is necessary to closely study and draw conclusions from the current situation involving the US banking crisis, Kseniya Yudaeva, first deputy governor of the Bank of Russia, said at the ACRA Forum.
“We should learn not merely from our own mistakes, but also from the mistakes of others. We have a reason to stop and think about this. This case [the situation surrounding US banks] has to be looked into thoroughly and studied in order to come to an understanding of whether or not it may affect us,” the central bank official said.
Yudaeva characterized the US banking crisis with a paradoxical aphorism, attributed to the late Russian Prime Minister, Viktor Chernomyrdin: “There’s never been anything like this before, and now here we go again.”
The situation in the US may affect the Russian economy, but it may be only indirect pressure, the senior central banker said. “We have already seen one of the potential implications: pressure is normally felt on oil prices and export prices in conditions where an economic downturn is expected or there is a squeeze on financial markets. The influence on our economy may nevertheless be felt through the current account,” Yudaeva added.
Deutsche Bank, now!
“When America gets a cold, the rest of the world catches pneumonia”.
I thought DB was on life support years ago.
I don’t remember exactly why...but it had something to do with derivatives.
Once DB goes, look out below.
This whole thing has little to do with Russia. The Russian Economy is pretty much meaningless in terms of the entire world. Their biggest export is oil. And that is not making them much money these days.
Deutsche has been swirling the drain for four years or more. They are a mess. We’re going to find out they were holding on to HTM MBS after literally tripping over every risk since 2001 and being hit in the face by it.
You’d think they’d be experts in this, but they’re the opposite. It’s down to $8 now. Their CDS’s went up $25 last night. Up to $175. There is every incentive now to sink Deutsche and take a handsome profit.
Deutsche Bank has been in trouble for years....ever since the Great Recession. The latest troubles cannot be helping but they weren’t exactly in good shape before all this.
Deutsche Bank bought up a lot of the paper for real estate in Europe as well as sovereign bonds from southern European countries that everybody knows cannot repay their debts. Ergo, a lot of their assets are toxic.
Like most European banks which were worse off than American banks, they’ve just kicked the can down the road rather than recognizing their toxic assets and taking write downs. They’ve been hoping to bleed out the losses slowly as they recapitalize.
Deutsche Bank is twice the size of Credit Suisse so if they collapsed it would really send shockwaves through the global market.
Oil prices are a symptom, not the cause.
All those paper scripts floating around are now being called in through the normal flow of weak to strong. There is no demand in the economy for expansion and hence no demand for loans. The huge increases in the stock market and home prices were the harbinger of bad news for the paper expansion. If the government keeps heaping out more deficit spending, it will just get worse. Two avenues of fix: cut the budgets or raise taxes or both. Neither are politically feasible so we just ride the roller coaster ride over the top with no brakes.
I was just reading up on them. I guess their CDS rates went from 140 something to 172...yesterday. Yikes. Thats a sign that something is wrong.
When CS went down and the bond holders were shut out, that must have startled the big boys in Europe. I guess the Rothschilds are going to have to convert their bank bonds to gold. Ha ha.
“no demand for loans.”
An additional cause for this is higher interest rates in the past year.
Loans have gotten very expensive—and the risk/reward ratio has gotten out of whack for potential borrowers.
https://www.crainscleveland.com/economic-outlook/federal-reserve-boosts-key-rate-quarter-point-amid-banking-woes
At the same time,
2) The Fed also just announced it has opened wide the 'Discount Window' - where insolvent banks (like SVB) can borrow freshly printed money from the Fed if they're desperate - and that activity just skyrocketed from $4 Billion on March 9 to $153 billion on Wednesday.
https://www.americanbanker.com/news/feds-super-discount-window-issues-12-billion-of-advances-in-three-days
In short the Fed is screwing the little guys with higher interest rates while bailing out the elite guys at the Discount Window.
That the WH and Fed continue to maintain they are curbing inflation is laughable. They are clearly not interested inflation per se with these conflicting policies -- they are playing politics and helping out favored donor groups as our capital markets circle the drain!...
Good post.
The “open window” reignites inflation of course—it is the “crack house” where bankers can get their fix.
At “the discount rate” — an artificially-low borrowing rate. Just another way of subsidizing cheating, communist rent seekers. If I’m late paying my tiny credit card bill, the Fed doesn’t subsidize me like this! 🤬
It’s all about the elites pulling out their profits (again), on the backs of the little guy/working stiffs.
Saw an excellent cartoon meme, yesterday....on the left side were barrios/ghetto houses captioned Democrat voters....on the right side, of the big, beautiful fence, were YUGE mansions....captioned Democrat Representatives.
Two-tiered Justice System....Two-tiered Interest Rate System....
DEFUND THE DEEP STATE, END THE FED!
Yep. We’ve seen this movie, before....and, know how it ends.
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