"I'm here for one reason and one reason alone. I'm here to guess what the music might do a week, a month, a year from now. That's it. Nothing more. And standing here tonight, I'm afraid that I don't hear - a - thing. Just... silence."
Posted on 06/19/2024 8:44:57 AM PDT by Kaiser8408a
When the music’s over … turn out the lights. But not the end.
Last October, when the wounds from the March 2023 bank failures – which surpassed the global financial crisis in total assets and which sparked the latest Fed intervention, setting the market’s nadir over the past 16 months – were still fresh, we made a non-consensus prediction: we said that since the Fed has once again backstopped the US financial system, “the next bank failure will be in Japan.“
But if that was the first, and still distant, sign that something was very wrong at one of Japan’s biggest banks (Norinchukin is Japan’s 5th largest bank with $840 billion in assets) today the proverbial canary stepped on a neutron bomb inside the Japanese coalmine, because according to Nikkei, Norinchukin Bank “will sell more than 10 trillion yen ($63 billion) of its holdings of U.S. and European government bonds during the year ending March 2025 as it aims to stem its losses from bets on low-yield foreign bonds, a main cause of its deteriorating balance sheet, and lower the risks associated with holding foreign government bonds.”
See, what’s happened in Japan is not that different from what is happening in the US, where as the FDIC keeps reminding us quarter after quarter, US banks are still sitting on over half a trillion dollars in unrealized losses, as a result of the huge jump in interest rates which has blown up the banks’ long-duration fixed income holdings, sending them trading far below par and forcing banks (and the Fed, see BTFP) to come up with creative ways of shoving these massive losses under the rug.
(Excerpt) Read more at confoundedinterest.net ...
That’s a good sized hole that needs plugging.............
"We still have a chance if we go down slow..."
Do you ever get the feeling that once our Weimar Republic collapses, the Sodomite NAZIs will take over?
US debt is being dumped, China sold 500 billion, Japan, Western “ allies’….
$$$$$$$$$$$$ 10 trillion ( some say more) mature and they must find buyers by the years end……good Luck…
This is what happens when an idiot weaponized the USD. US debt default is now being forecasted by 2027….they still have many “ tricks” , but no tools in the tool box left and fewer buyers of debt every day….can you say “ Brics”?
…not doom and gloom, just the facts….prepare accordingly- you may just Prosper!….many won’t.
“That’s a good sized hole that needs plugging.............”
2023 earnings: $848,000,000.
Wonder how much using Russian assets as leverage to fund Ukraine are in play. (US and EU) also a global CBDC used by everyone would be an huge hit.
Losing reserve currency didn’t destroy UK, wonder if we would fair as well?
I tried ‘splaining this to the wife.
I’m not going to try ‘splaining this to any other blunt skull ever again. I’m just going to ask what their plans are when the ‘crash’ happens...and sit there and ‘smile’.
(seeking referrals for forehead reconstructive surgery post-repetitive desk impact)
https://www.rockefellerfoundation.org/news/carbon-yield-launch/ New York City, June 19, 2017
The methodology for calculating the Carbon Yield is publicly available at www.carbonyield.org.
Pioneered by Lion’s Head Global Partners, South Pole Group and Affirmative Investment Management (AIM), with support from The Rockefeller Foundation, the new methodology comes at a time when the Green Bond market is set to exceed $100bn in issuance and demand continues to outpace supply.
Green Bond Market exceed $100bn in issuance and demand continues to outpace supply.
Hmmm. That launch was in 2017 https://www.rockefellerfoundation.org/news/carbon-yield-launch/. Maybe covid impacted the bond market. Who could tell
From https://www.nochubank.or.jp/en/sustainability/management/finance/
Results
As of March 31, 2023, we achieved ¥4.4 trillion (including ¥2.0 trillion in the environmental sector) of our ¥10 trillion new sustainable finance transaction target for fiscal 2030.
It looks like they took a bite out of the sustainable apple but since the website is somewhat ambiguous to my eyes all I can conclude is sustainable finance might have contributed to the difficulty Norinchukin Bank is enveloped in. But I see the whole climate change BS as a weaponized tool to destroy US so don't take my observations as scientific, either.
I wonder if the Fed is going to do this. Ha Ha ha.
How are those mortgage backed securities working out for the big banks?
Losing reserve currency didn’t destroy UK, wonder if we would fair as well?
————-
One look at England today compared to their hugeBritish Empire of the current past does show they went from number one to the tiny nation they are now.
They survived yes, but today is an “ irrelevant “ Nation. I suspect we are headed the same direction.
Living lives of quiet desperation
“Hanging on in quiet desperation is the English way...”
I was explaining this stuff to my wife the other day—we were having fun with it.
The only prop required was a stuffed animal dog toy—an orange hedgehog looking thing.
“Pretend you are a banker.
You give me a loan for ten dollars.
I give you the stuffed hedgehog dog toy as collateral.
When I pay you back the ten dollars you will give me the hedgehog back.
Now you are actually kinda broke and you need the ten dollars back now.
So you borrow ten dollars from another bank.
They know you are broke so they want collateral.
You agree to give them my hedgehog as collateral.
Then they do the same thing with another bank as my hedgehog travels all over the country and even the world!”
The time is gone, the song is over
Thought I’d something more to say
Classic!
(The mass of men lead lives of quiet desperation- Henry David Thoreau)
👍
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