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Daily Digest 10/26 - Bad Loan Charges To Hit Singapore Banks, Housing Bubble Different Than 2008 But Equally Scary

Wednesday, October 26, 2016, 7:36 AM

Economy

Bad Loan Charges to Hit Singapore's Three Biggest Banks

Lenders are setting aside more money for loan losses tied to the oil and gas industry, which has been hurt by lower energy prices. Bank profits have also come under pressure from a weakening domestic economy and a slump in the Singapore interbank offered rate -- one of the benchmarks for local interest rates -- to a one-year low, which has curbed the amount lenders charge for loans.

Weak South African Economy Muddies Budget as Downgrade Looms

Low commodity prices, sluggish global demand and the worst drought in more than a century have weighed on output and boosted inflation in Africa’s most-industrialized economy, while policy uncertainty and political turmoil have pushed business confidence to a three-decade low. The nation is at risk of losing its investment-grade credit rating as S&P Global Ratings and Fitch Ratings Ltd., which put South Africa at the lowest investment grade, are due to review their assessments by the end of the year.

Canada's Record Household Debt Is Threatening Its Financial Stability

The combined debt of Canadian governments, companies and households reached $4.4 trillion in the first quarter, or 288 percent of gross domestic product, exceeding the same gauge for the U.S., the U.K. and Italy, according to the Bank for International Settlements.

As Europe and Asia hoard cash, economists see echoes of crisis

The surge in flows echoes a wave of investment in the years right before the financial crisis, when mostly European investors snapped up billions of dollars of mortgage-backed securities before the US housing market imploded.

Ratings Inflation Is Back, Subprime Style

In 2015 alone, U.S. companies borrowed a record $1.6 trillion in the bond markets, with $258 billion of that going to finance acquisitions by investment-grade companies, Barclays Plc says. According to Morgan Stanley, corporate America is now more leveraged than ever.

This Housing Bubble Is Different Than 2008, But Equally As Scary

But when rates rise this starts a whole new problem that could have severe economic ramification. The impact of higher rates would be twofold; home prices would likely move lower while mortgage payments increase. Even with a rate hike, there would still be a large number of potential buyers that don’t have the capital or equity to meet the down payment requirement.

Bank of Canada: rate cut would bring unconventional tools closer

With rates already so low, the bank has laid out a number of unconventional measures that are in its toolkit if need be, including negative interest rates, asset purchases and forward guidance. It has said there is not a prescribed order for using those tools.

BOJ official says new policy is not firm target for yields: Nikkei

Under a new "yield curve control" framework, the BOJ's main means for monetary easing would be to deepen negative interest rates from the current minus 0.1 percent, or lower its 10-year bond yield target - now set at around zero percent.

Swiss cenbank could cut rates more if needed - SNB's Jordan

The Swiss National Bank could cut its negative interest rates even more if needed, SNB Chairman Thomas Jordan said on Monday. "We have not yet reached the lower bound. Where it is exactly I cannot say," he told a question-and-answer session after giving a lecture at an economic conference in Basel.

Saudi Bond Sale Spurs Gulf Borrowing to Record With More to Come

Saudi Arabia’s $17.5 billion international bond sale, the largest ever from an emerging market, boosted the amount raised through loans and bonds in the six-nation Gulf Cooperation Council to $151 billion, according to data compiled by Bloomberg, eclipsing the full-year record of $142 billion set in 2007.

Austria’s 70-Year Debt Sale Expands Europe’s Ultra-Long Universe

The sale follows this year’s century bond offerings from Belgium and Ireland, as well as 50-year deals from France, Italy and Spain, as countries take advantage of historically low interest rates to issue ultra-long debt. The 100-year bond sales by Belgium and Ireland were private placements for 100 million euros each.

Gold & Silver

Click to read the PM Daily Market Commentary: 10/24/16

Provided daily by the Peak Prosperity Gold & Silver Group

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saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4239
China's Banks Are Running Out of Ways to Keep Profits Growing

Japanese Fleeing Negative Rates Take Refuge in Indian Yields

Bloomberg-10 hours ago

Japanese household investors are buying rupee-linked bonds like never before as negative interest rates at home prompt them to take greater risks in search for .

Saudi central bank asks banks to reschedule property loans as austerity bi...

Reuters - ‎22 hours ago‎
At the end of last month, the central bank asked local banks to reschedule consumer loans to help cash-strapped borrowers service them; it is now doing the same with real estate loans. (Reporting by Marwa Rashad; Writing by Andrew Torchia; Editing by ...

ECB all but certain to keep buying bonds beyond March, ease QE ...

Reuters UK-25 minutes ago
The headquarters of the European Central Bank (ECB) are pictured in Frankfurt, Germany, September 8, 2016. REUTERS/Ralph Orlowski/File Photo.

China's Banks Are Running Out of Ways to Keep Profits Growing

Bloomberg-17 hours ago
China's five largest banks are facing an increasingly daunting balancing act as ... ICBC's breaches this year prompted the central bank to deduct points from its ...

Brazil defaults stay at record as refinancing gets tougher

Reuters-24 minutes ago
... that efforts by commercial banks to refinance looming debt maturities are yet to ... percent in September, to 3.11 trillion reais ($998 billion), the report showed.

Gordhan Squeezes Taxpayers to Avoid South Africa Junk Rating

Bloomberg-54 minutes ago
He lowered growth forecasts until 2018 and projected wider fiscal deficits. ... Gordhan pledged an extra 17.6 billion rand to help poor university students through ...

Brussels Demands €5.5 Billion In New Budget Cuts From Spain In ...

The Spain Report-17 hours ago
The European Commission says the current plan for a deficit of 3.6% of Gross Domestic Product (GDP) in 2017 is too high and that the agreed upon figure was ...

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4239
More than 1/4 Trillion in new debt in 30 days

The Daily History of the Debt Results

Historical returns from 09/25/2016 through 10/25/2016

The data for the total public debt outstanding is published each business day. If there is no debt value for the date(s) you requested, the value for the preceding business day will be displayed.

( Debt Held by the Public vs. Intragovernmental Holdings )

Date Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
09/23/2016 14,133,690,092,042.80 5,391,072,885,676.82 19,524,762,977,719.62
09/26/2016 14,133,540,381,801.80 5,396,048,120,946.87 19,529,588,502,748.67
09/27/2016 14,133,914,249,908.12 5,402,940,266,373.59 19,536,854,516,281.71
09/28/2016 14,134,459,589,754.46 5,385,472,778,092.82 19,519,932,367,847.28
09/29/2016 14,148,919,195,185.48 5,383,971,038,667.69 19,532,890,233,853.17
09/30/2016 14,173,423,516,895.82 5,400,021,197,040.97 19,573,444,713,936.79
10/03/2016 14,169,562,468,883.59 5,473,387,273,677.92 19,642,949,742,561.51
10/04/2016 14,170,607,259,402.13 5,488,853,387,758.70 19,659,460,647,160.83
10/05/2016 14,170,897,492,757.91 5,492,514,005,039.49 19,663,411,497,797.40
10/06/2016 14,191,998,688,412.48 5,496,774,917,705.06 19,688,773,606,117.54
10/07/2016 14,192,019,528,044.50 5,495,404,952,914.64 19,687,424,480,959.14
10/11/2016 14,191,727,340,124.70 5,502,589,257,087.44 19,694,316,597,212.14
10/12/2016 14,192,469,293,335.61 5,496,212,562,862.46 19,688,681,856,198.07
10/13/2016 14,225,008,508,056.12 5,495,822,314,247.37 19,720,830,822,303.49
10/14/2016 14,224,929,303,468.67 5,496,689,254,335.10 19,721,618,557,803.77
10/17/2016 14,250,368,582,399.09 5,505,195,434,753.88 19,755,564,017,152.97
10/18/2016 14,250,776,102,656.20 5,515,803,925,593.21 19,766,580,028,249.41
10/19/2016 14,251,115,177,983.21 5,503,141,883,898.95 19,754,257,061,882.16
10/20/2016 14,280,302,905,411.90 5,505,282,284,466.22 19,785,585,189,878.12
10/21/2016 14,280,596,088,761.43 5,505,844,666,542.37 19,786,440,755,303.80
10/24/2016 14,280,600,879,535.61 5,507,419,808,984.92 19,788,020,688,520.53
10/25/2016 14,281,263,358,831.04 5,527,241,493,376.17 19,808,504,852,207.21

 

Sterling Cornaby's picture
Sterling Cornaby
Status: Silver Member (Offline)
Joined: Sep 5 2012
Posts: 152
three rules for rulers

Here is a new video by cpg Grey outlining rules for holding power.  I thought it was great, I learned some stuff, and it goes well with ideas on the deep state.  It seems right in line with stuff people here at PP are about; understanding the world we live in.

 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
My Response on Zerohedge to rules for rulers.

Wrong model.

The King is naturally allied  to the peasantry. 

Their common enemy are the Aristocracy. 

A well run society keeps these three levels in balance.

The Aristocracy tries to foment a peasant revolution against the King. 

The King must tend to his peasants. 

Appeals to the Crown by the peasantry must be taken seriously.  They are used to beat the Aristocracy around the head and shoulders.

The King must foment petty jealousy amongst the aristocracy.  Hence the Courts of Versailles, Washington, The Kremlin and Canberra .

The reason that the US democracy is in trouble is because the King has been captured by the aristocracy. 

The reason that he has been captured is because he has always been drawn from the peasantry. 

It takes many generations to make a good King. 

It takes one bad King to set the society back to the rule of the aristocracy. 

And the Aristocracy is the natural enemy of the peasants. 

But I see the begginings of a King in The USA.

If you are a peasant you must support him, but ensure that he does not destroy the aristocracy,  because

In a well run society all three layers need to be in constant warfare. 

Edwardelinski's picture
Edwardelinski
Status: Gold Member (Offline)
Joined: Dec 23 2012
Posts: 338
Fracking and childhood leukemia?

Check it out on ibtimes.com

Edwardelinski's picture
Edwardelinski
Status: Gold Member (Offline)
Joined: Dec 23 2012
Posts: 338
Worried about Retirement?

Check out Dave Sirotas investigative report on Blackstones push to bring in Wall Streets bid to take over every Americans retirement.Also,take note of hedge funds funding Republican campaigns in order to take control of state pensions across the country,Please note-the nasty guys here-Sirota is an equal opportunity slayer,regardless of party....It is a 3 part series.The tabloid,fear infested blogs have not gotten wind of it yet.Trust Sirota....

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2890
Ben Swann nails it

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4239
China capital flight flashes warning as authorities forced to pr

China capital flight flashes warning as authorities forced to prick ...

Telegraph.co.uk-17 hours ago

As real estate lurches from boom to probable bust, developers will be left sitting on $1.1 trillion of debt, similar to the US subprime bubble in 2007. How this will ..

China Gets Desperate About Debt

Bloomberg - ‎16 hours ago‎
Earlier this month, China's State Council released guidelines for a new swap program, in which companies can exchange troubled debt with banks in return for equity. The government hopes this will give the firms a chance to restructure on favorable ...

Chicago school board approves $1 bln bonds for junk-rated district

KFGO - ‎17 hours ago‎
CHICAGO (Reuters) - The Chicago Board of Education gave final approval on Wednesday to the sale of up to $1 billion of new and refunding bonds for the junk-rated district. The third-largest ... The muni market has demanded fat yields for CPS debt. Even ...

Greek Household Income Shrinks Even Further With More Belt-Tightening

Greek Reporter - ‎20 hours ago‎
The external balance of goods and services recorded a 0.4 percent deficit against a 0.1 billion surplus in the second quarter of 2015. Net lending of general government during the second quarter of 2016 amounted to 0.2 billion euros compared with 1.6 ...

Americans Saying No to Rising Healthcare Costs and Moving ...

PR Web (press release)-6 hours ago
As the Affordable Care Act pushes costs for insurance coverage up for some, more Americans are looking abroad to avoid rising healthcare and insurance costs.

Widespread anti-Maduro protests turn violent in Venezuela

FRANCE 24 - ‎12 hours ago‎
Venezuela's increasingly militant opposition stepped up its push to oust leftist leader Nicolas Maduro on Wednesday with protests that drew hundreds of thousands but also saw unrest leading to dozens of injuries and arrests. In an incident sure to ...
davefairtex's picture
davefairtex
Status: Diamond Member (Offline)
Joined: Sep 3 2008
Posts: 5693
thumbs up for "rulers" video

SC-

So that's literally the best video ever on the mechanics of power.  I found it totally worth my 20 minute time investment, and its something we should be teaching kids in middle school, at the very least.

2 million views already.

 

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