By Tyler Durden, Authored by Alasdair Macleod via GoldMoney.com, Introduction The Euro Crisis Monitor (below) shows the increasing imbalances in the TARGET2 settlement system between all its members: the ECB (itself with a €145bn deficit) and the national central banks in the Eurozone. Other than minor differences reflecting net cross-border trade not matched by investment […]

By Tyler Durden, Despite being crowned “the king of supply chain finance” earlier this year, Lex Greensill, the Australian melon and sugar cane farmer who rose from obscurity to earn a reputation as a financial wizard (who revamped the practice of supply chain finance and helped some of the world’s biggest banks and asset managers […]

By Tyler Durden, On Thursday German prosecutors raided the finance and justice ministries over accusations that the government’s anti-money laundering agency, the Finance Intelligence Unit (FIU), failed to probe many instances of banks laundering money. The allegations center on the FIU failing to pass on the reports to the police and the judiciary, however, it is “still unclear if the FIU failed […]

By Tyler Durden, When JPMorgan kicked off Q3 earnings yesterday, investor ignored the solid top-line results driven by a surge in advisory and ibanking revenue, and instead were more concerned by the latest decline in consumer and commercial loans and the drop in FICC trading. Would Bank of America follow the same fate when it […]

By Tyler Durden, Authored by Antonis Giannakopoulos via The Mises Institute, The Greek economy shrunk by a record 14 percent in the second quarter of 2020 while at the same time government efforts to ‘’cure’’ the economy have set the country on the road to cross the 200 percent debt-to-GDP ratio as the IMF forecasts. In […]

By Tyler Durden, Authored by Willem Buiter via Project Syndicate, Across the advanced economies, central banks have rightly prioritized maintaining financial stability and supporting the real economy over fighting inflation with interest-rate hikes. But with financial fragility rife and public and private leverage at all-time highs, their next big test is coming. Since early 2020, […]

By Tyler Durden, In his latest note, SocGen’s Albert Edwards made an ominous – if obvious – comparison: “as energy prices surge with a backdrop of central bank tightening it’s starting to feel a bit like July 2008” referring to that moment of “unparalleled central bank madness as the ECB raised rates just as oil prices […]

By Tyler Durden, As the dominoes continue to fall in the Greensill Capital debacle, increased scrutiny on the overall trade finance business is starting to spark investor anxiety. While not directly linked to Greensill’s collapse, Mauritius-based Barak Fund Management has announced that is preparing to restructure its $1 billion money-pool of highly illiquid assets. Bloomberg reports that […]

By Tyler Durden, Authored by Willem Buiter via Project Syndicate, Across the advanced economies, central banks have rightly prioritized maintaining financial stability and supporting the real economy over fighting inflation with interest-rate hikes. But with financial fragility rife and public and private leverage at all-time highs, their next big test is coming. Since early 2020, […]

By Tyler Durden, Over the weekend, Morgan Stanley’s chief equity strategist Michael Wilson spooked some of the most vocal market propagandists when he pointed out the patently obvious, that tapering is in fact tightening, but also made a troubling observation for the market bulls: as Wilson put it, “the most powerful offset to a material correction in […]