The US banking system is reeling as the commercial real estate market may turn out to be as toxic as the subprime mortgages that led to the 2008/2009 crisis. At the same time, approximately 1 trillion dollars are the loans that the official banking sector has granted to the shadow financial system – how much …
Category: Market Analyses
Analyses and articles for world financial markets
Risk for Lehman Brothers No. 2 and Recession like 2008
Opinions are being strengthened that maintained that the banking crisis in the US may not be over and that there is a risk of a new Lehman Brothers-style shock due to the purchase of commercial real estate. In this context, the share of the American bank New York Community Bancorp (NYCB), which is at its …
FED: Prepares permanent mechanism for bailing out troubled banks
The US banking system is at risk of collapse, according to the indications we have based on the movements of the federal authority, the Federal Reserve, in order to force US banks to use the so-called discount window on their funds in order to prepare for future banking crises – which are certain to occur. …
Towards a new permanent banking crisis, the “bubble” in commercial real estate is bursting
What the chairman of the Federal Reserve, Jerome Powell, said on Wednesday, January 31, 2024, after the two-day meeting of American policy makers, contained nothing comforting. Notably, he did not cut interest rates, or announce cuts and monetary easing next March – as the market predicted. As a result, markets skidded, the dollar rallied and …
Why is the FED secretly preparing for another banking crash?
It recently became known that the American authorities are preparing a proposal that will push American banks to use the “loophole” of the Federal Reserve Bank of the USA (Federal Reserve, FED) in the event of a new crisis. For whom does the bell toll? It is clear that the FED wants to take its …
Interest rate cuts will send Corporate debt into “junk” bonds
The announced interest rate cuts by the Federal Reserve will lead to lower yields on junk bonds. In other words, for a company with a very low credit rating, it will lead its debt to the category of “junk” bonds. The question is whether investors will be willing to take on the greater risk of …
The Digital nature of Cryptocurrencies, fundamentals and new money
Bitcoin’s true value is digital, it is a level of digital reality, and it is more valuable than what we might conventionally call its “current price.” Bitcoin is built like TCP/IP, the two protocols that underpin the operation of the internet. Without protocols, there would be no digital revolution and our entire lives would be …
FED reopens liquidity floodgates with new QE in April 2024 – creates problem for dollar
On December 13, the financial world was stunned when, just two weeks after Jerome Powell said it was “premature” to make assumptions about interest rate cuts, the Federal Reserve made a shocking U-turn, heralding the end of monetary tightening – even though inflation is at levels twice the 2% target. The Federal Reserve’s 180-degree U-turn …
Strategic move on the chessboard of Geopolitical competition, the purchases of gold by the Central Banks
Central banks around the world are hoarding gold at a record pace, signaling a transformation of historic proportions in the global financial system. This “gold rush” is not just about a defensive strategy to preserve the value of assets from the “storms” of the global economy – it is a strategic move on the grand …
Light Painkiller the interest rate cut, loop the over-indebtedness
While the Federal Reserve and European Central Bank’s message on rate cuts appears clear as they reiterate their commitment to reducing inflation, the market expects between five and six rate cuts, between 125 and 150 basis points , the next twelve months. This shows us the tendency of investors to overlook bubbles. We live in …