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Daily Digest 10/31 - Banks Hoarding $2.4T In Bonds, Selling Air

Monday, October 31, 2016, 7:44 AM

Economy

Banks Are Hoarding $2.4 Trillion of Bonds (jdargis)

The easy answer, of course, has to do with post-crisis financial regulations, which were designed to curb risk-taking and have compelled banks to hold more high-quality assets. Yet in many ways, the buildup reflects a more worrying sign. In the past year, more loan officers at large and midsize banks have tightened credit to businesses than at any time since 2009, when the U.S. was still reeling from the housing bust. Americans are also saving more rather than taking on extra debt, damping demand for new loans.

FBI trying to build legal cases against Russian hackers: sources (jdargis)

The Obama administration's response so far to actions it has attributed to Russia has not satisfied lawmakers from either major party.

On Thursday, Democratic Senator Jeanne Shaheen wrote to the leadership of the Senate Foreign Relations Committee requesting a hearing to investigate whether Russia "is employing the tactics it has long used to influence elections in places like Ukraine and Georgia, this time in the United States."

Why FBI director James B. Comey was able to defy Justice bosses on Clinton email announcement (jdargis)

Comey, a veteran federal prosecutor and former deputy attorney general, has long prided himself on being fiercely independent and making decisions on principle. Comey, a Republican, was appointed by President Obama three years ago, and his nomination was seen by some as a bipartisan effort at a time that the president was being criticized relentlessly by GOP lawmakers. At the time, Obama praised Comey’s “fierce independence and his deep integrity.”

BOE’s Carney May Decide on Future in Coming Days, Times Says (Adam)

The BOE held an emergency televised press conference a day after the Brexit vote, pledging an extra 250 billion pounds ($304 billion) of support for the financial system. Since then, various economic indicators have shown the U.K. economy remains resilient. Carney’s critics have accused him of trying to reverse the referendum’s decision through gloomy economic predictions.

Undercover With A Border Militia (jdargis)

The three percenter philosophy has quickly grown into a grassroots, national movement, part of a resurgence of right-wing militia activity following Obama's election in 2008. An Amazon search turns up more than 4,000 results, ranging from baby clothes to iPhone cases with the three percenter logo. There are more than 300 three-­percenter Facebook pages, websites, and discussion forums. The main 3UP Facebook group has more than 15,000 members, though the actual number of people who belong to active real-life "threeper" groups is difficult to estimate.

Selling Air (a.k.a. the Idea They Thought of Next) (jdargis)

Bottled air is one of the least practical but most talked-about ideas. It can hardly replace the local atmosphere — one person would require at least eight to 10 bottles a minute to breathe. But residents in smoggy places are snapping up the stuff anyway.

The Australian bottler, Green and Clean, plans to ship about 40,000 containers a month to China starting in December, and then expand to India, Malaysia, Chile and the Middle East.

Big Oil Cannot Afford To Ignore Climate Change (Josh O.)

Moody’s argument could be boiled down to this. The cost of renewable energy is falling, and lower renewable prices will put pressure on wholesale energy prices just as carbon pricing adds to the costs of the carbon-fueled generators. Thus, margins will fall the most for the least efficient carbon-fueled facilities. Unregulated, inefficient and inflexible carbon fuel generators will suffer the most because they will lose market share, face falling margins and they have no regulatory protection. On the plus side, for them, the unregulated markets have had to create capacity payments to keep generators from closing down and leaving the system with insufficient capacity and capacity payments now make up 40 percent of generating gross margin in regions that have such a scheme to pay generators to keep open to prevent emergencies.

Why has climate change been ignored in the U.S. election debates? (jdargis)

“It’s like a sort of collective cowardice,” said Emanuel of the omission. Michael Mann, another prominent climate scientist, added: “One has to wonder if television networks are compromised by the millions of advertising dollars they take from fossil fuel interests.”

Gold & Silver

Click to read the PM Daily Market Commentary: 10/28/16

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

10 Comments

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2769
An interesting take on PC culture

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Polemole.

I don't know if this means anything but the results are startling. Sorry. I couldn't lift the graph under the dropdown "vote".

http://www.pollmole.vote/web-app/

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
RT.

That's interesting.

Russia Today has Nothing on the US election. Putin is very much leaving you to your own devices.

And that in spite of the many juicy scandals.

Such continence is admirable.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
World to face stress test as dollar Libor spikes and bond rout d

 

World to face stress test as dollar Libor spikes and bond rout deepens

Telegraph.co.uk-16 hours ago

It has widened to 38 basis points, nearing levels seen in the eurozone debt crisis and past bouts of stress. The message from the 'TED ... Buy the bond bubble."

European Banks Stuck With $1.3 Trillion of Bad Loans, KPMG Says

Bloomberg - ‎7 hours ago‎
European lenders are battling to cut soured loans as they face evaporating income from lending amid negative interest rates from the European Central Bank. Net interest margins, the difference between income from lending versus cost of funding, average ...

Euro zone growth still slow, October core inflation dips

Reuters - ‎3 hours ago‎
BRUSSELS The euro zone economy grew at the same slow pace in the third quarter as the second and core inflation dipped in October, reinforcing expectations that the European Central Bank will decide to extend its asset-buying program in December.

Japan Sept industrial output stalls in worrying sign for economy

Daily Mail-13 hours ago
... annual 2.3 percent in September, faster than a 2.1 year-on-year increase in August, as the BOJ's negative interest rate policy pushes down rates on car loans.

Saudi central bank foreign assets shrink $7.4 bln in September

Reuters - ‎Oct 30, 2016‎
DUBAI Oct 30 Net foreign assets at Saudi Arabia's central bank fell by $7.4 billion to $546.7 billion in September from the previous month, as the government drew down reserves to cover a budget deficit caused by low oil prices, official data showed on ...

Two of China's Big Five banks consider new debt-for-equity swap units

Reuters-5 hours ago
Corporate China sits on $18 trillion in debt, equivalent to about 169 percent of gross domestic product (GDP), which some economists fear could destabilize the ...

Chinese debt-for-equity swaps risk keeping zombie companies undead

Nikkei Asian Review - ‎19 hours ago‎
Yunnan Tin, a state-owned enterprise connected with the government of its namesake province, is looking to convert 5 billion yuan of its debt into equity. The company continues to struggle -- a listed subsidiary reported a nearly 2 billion yuan net ...

Brazil's budget deficit 26.643 bln reais in September

Reuters-26 minutes ago
Brazil accumulated a primary deficit of 188.3 billion reais in the twelve ... The primary balance, or the budget result prior to interest debt payments, is a key ...

German Pension Giant Seeks Outside Help to Grow $82 Billion Fund

Bloomberg-8 hours ago
“We will invest more in assets such as high yield, emerging-market debt and ... who helps oversee 75 billion euros ($82 billion) as BVK's chief investment officer, ...

South Korea Throws Its Shipbuilders a $9.6 Billion Lifeline

Wall Street Journal - ‎4 hours ago‎
In June, the government and the central bank set up an 11 trillion won fund to recapitalize state-run banks so they can absorb bad debts from ailing shipping and shipbuilding companies. Vice Trade Minister Jeong Marn-ki said Monday the government hopes ...

Japan Shippers to Merge Container Lines as Industry Shrinks

BloombergQuint-6 hours ago
South Korea's government said Monday that it plans to spend 11 trillion won ($9.6 .... Sovereign debt in the world's biggest economy has lost 1.2 percent on ...

Singapore Inc faces $12 billion debt scramble

Reuters-15 hours ago

Between now and the end of 2017, according to Reuters data, US$12.4 billion of bonds falls due, but corporate balance sheets in the city state are looking ..

Sinking feeling: plumbers face £1.5bn pension 'time bomb'

Citywire.co.uk-5 hours ago
Plumbers could be liable for crippling pension scheme debts when they retire, ... A £1.5 billion pension scheme is a 'ticking timebomb' of debts and liabilities for ...

S&P cuts outlook for Macquarie, BoQ, AMP Bank on risk of 'sharp correction' in housing

The Sydney Morning Herald - ‎14 hours ago‎
It made the downgrade because it now believes there is a 1-in-3 chance of "strong growth" resuming in house prices and debt, which the agency said would increase the risk of a "sharp correction" in property prices. It did not change its position on the ...

Illinois teachers' pension system needs $4.6 billion – just for starters

SaukValley.com - ‎15 hours ago‎
The Teachers' Retirement System of the State of Illinois announced Friday it had given preliminary approval to a contribution request for $4.56 billion to its pension fund. The changes in state law made last year for determining actuaries' estimates ...

 

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1517
Don't be surprised

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1763
We Know

And we will not be deceived again.

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2379
Lateral ejection...

Those words only go together when talking about the towers falling, "down".. and of course they describe how the towers didn't just fall down.. they shot outwards too!  

Lateral Ejection................

    

davefairtex's picture
davefairtex
Status: Diamond Member (Offline)
Joined: Sep 3 2008
Posts: 5072
wikileaks phase 3

http://www.zerohedge.com/news/2016-10-30/wikileaks-warns-it-launching-phase-three-its-election-coverage

On Sunday night, Wikileaks enigmatically tweeted that it would launch “phase 3 of [its] US election coverage" in the coming week. The site put politicians on notice Sunday evening in a tweet that also included a plea for donations.

“We commence phase 3 of our US election coverage next week. You can contribute: https://shop.wikileaks.org/donate  @WLTaskForce" the whistleblower website announced moments ago.

I can't wait.

 

newsbuoy's picture
newsbuoy
Status: Silver Member (Offline)
Joined: Dec 10 2013
Posts: 228
Colonial shuts gasoline, distillate lines after explosion, fire

http://www.reuters.com/article/us-pipeline-blast-alabama-idUSKBN12V2FC

reflector's picture
reflector
Status: Gold Member (Offline)
Joined: Aug 20 2011
Posts: 267
greg hunter interviews jim rickards

good interview, greg hunter interviews jim rickards

James Rickards-Huge Inflation Coming With Coming Economic Meltdown

 

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