Ways to avoid another 2008 stock crash
Markets need morals and regulators need muscle
Instead the BIS has called for reforms by governments to enhance productivity and encourage employment growth. It also urges households and firms to complete the difficult job of repairing their balance sheets and says governments must step up their efforts to ensure the sustainability of their finances.
The “borrowed time” central banks have created with ultra-low interest rates following the collapse of Lehman Brothers in 2008 has not been well used, it said, and has fueled a false sense of comfort that reforms and deleveraging can be resolved later.
http://www.cnbc.com/id/100837518
Why China Is Purposely Pushing Its Banking System To The Edge Of A Crisis - Short-term pain for long-term gain.
China’s Xi-Li leadership appears committed to reforms and willing to accept slower growth and short-term hits to ensure the longer-term health of the economy.
So the question on everyone’s mind is how much of a liquidity crunch will the Chinese central bank tolerate.
“Surgery is meant to cure, not kill, the patient – and while some pain is inevitable, we firmly believe the PBoC is in control,” said Green.
The central bank can address a severe cash crunch through various tools. It could reverse repo transactions, cut the reserve requirement ratio, add liquidity through short-term liquidity operations (SLOs), though this tool has yet to be used.
“Immediately there are gonna be convulsions, which they’re going to address in the short-term with re-injections of capital,” Arthur Dong, professor of strategy and economics at Georgetown University told Business Insider.
“In the longer term the senior party leadership has pretty much sent the signal, and they’re sending it through the PBoC as well as through their banking systems, that the day of wine and roses, the days of free and unlimited capital are over.”
Read more: http://www.businessinsider.com/rising-chinese-rates-show-commitment-to-reform-2013-6#ixzz2XA67Js4Z
Market’s ‘Hall Pass’ Is Gone: “Bad News Is No Longer Good News”
http://www.zerohedge.com/news/2013-06-24/markets-hall-pass-gone-bad-news-no-longer-good-news
Stocks Drop 200 at Open on Fed, China Worries
http://www.cnbc.com/id/100838598
http://www.zerohedge.com/news/2013-06-24/they-said-sell-may-they-were-right
In the last month we have had 7 Hindenburg Omens and even Art Cashin was paying attention to it when we had five.
Markets need morals and regulators need muscle
“Is the entire stock market (and the system it supports) completely corrupted?”
When that question appeared in a recent MarketWatch poll, 76% of the nearly 1,400 respondents agreed with: “Yes, it’s legalized theft.”
Legalized theft? Like the bribes Mexican police demand or the
taxes dictators seize to build villas? Investors think the stock market
is theft?
Sure. And it’s easy to see why.
The Crash of 2008 exposed deep-rooted chicanery and few have
yet gone to jail for it. Follow-on scandals have won wide press. In
another MarketWatch piece, one financial felon claimed cheating is essential to succeed on Wall Street.Another
said most insider trading is too subtle to catch; the SEC is hunting
microbes with a toy magnifying glass. These crooks may be projecting, or
seeking the excuse of the crowd: I got the ticket, but everyone was
speeding! Yet they also have little to lose. Moreover, Sen. Elizabeth
Warren has echoed them, and Neil Barofsky, former TARP inspector
general, wrote, “The suspicions that the system is rigged . . . are true.”
http://www.marketwatch.com/story/how-to-avoid-another-2008-stock-crash-2013-06-24?dist=lcountdown
Stop ‘Retarding’ Economies With Loose Policy: BIS
“Central banks cannot do more without compounding the risks they have already created,”
it said in its latest annual report released on Sunday. “[They must]
encourage needed adjustments rather than retard them with near-zero
interest rates and purchases of ever-larger quantities of government
securities.”Instead the BIS has called for reforms by governments to enhance productivity and encourage employment growth. It also urges households and firms to complete the difficult job of repairing their balance sheets and says governments must step up their efforts to ensure the sustainability of their finances.
The “borrowed time” central banks have created with ultra-low interest rates following the collapse of Lehman Brothers in 2008 has not been well used, it said, and has fueled a false sense of comfort that reforms and deleveraging can be resolved later.
http://www.cnbc.com/id/100837518
Why China Is Purposely Pushing Its Banking System To The Edge Of A Crisis - Short-term pain for long-term gain.
China’s Xi-Li leadership appears committed to reforms and willing to accept slower growth and short-term hits to ensure the longer-term health of the economy.
So the question on everyone’s mind is how much of a liquidity crunch will the Chinese central bank tolerate.
“Surgery is meant to cure, not kill, the patient – and while some pain is inevitable, we firmly believe the PBoC is in control,” said Green.
The central bank can address a severe cash crunch through various tools. It could reverse repo transactions, cut the reserve requirement ratio, add liquidity through short-term liquidity operations (SLOs), though this tool has yet to be used.
“Immediately there are gonna be convulsions, which they’re going to address in the short-term with re-injections of capital,” Arthur Dong, professor of strategy and economics at Georgetown University told Business Insider.
“In the longer term the senior party leadership has pretty much sent the signal, and they’re sending it through the PBoC as well as through their banking systems, that the day of wine and roses, the days of free and unlimited capital are over.”
Read more: http://www.businessinsider.com/rising-chinese-rates-show-commitment-to-reform-2013-6#ixzz2XA67Js4Z
Market’s ‘Hall Pass’ Is Gone: “Bad News Is No Longer Good News”
http://www.zerohedge.com/news/2013-06-24/markets-hall-pass-gone-bad-news-no-longer-good-news
Stocks Drop 200 at Open on Fed, China Worries
http://www.cnbc.com/id/100838598
Global markets reel
We face another crisis – listen to those who got it right last time
They Said To Sell In May… They Were Righthttp://www.zerohedge.com/news/2013-06-24/they-said-sell-may-they-were-right
In the last month we have had 7 Hindenburg Omens and even Art Cashin was paying attention to it when we had five.
http://video.cnbc.com/gallery/?video=3000174929
The World Is Now On The Edge Of Total Collapse
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/23_The_World_Is_Now_On_The_Edge_Of_Total_Collapse.html
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