Home » Posts tagged 'Shadow Banking'
Tag Archives: Shadow Banking
As West, Debt & Stocks Implode, East Gold & Oil Will Explode
AS WEST, DEBT & STOCKS IMPLODE, EAST GOLD & OIL WILL EXPLODE “The risk of over-tightening by the European Central Bank is nothing less than catastrophic” says Prof Kenneth Rogoff . At Davos he also said: “Italy is extremely vulnerable. But this could pop anywhere. Global debt has gone up massively since the pandemic: public debt, […]
Indian Government Nationalizes 4th Largest Bank As Shadow Banking Crisis Looms
Indian Government Nationalizes 4th Largest Bank As Shadow Banking Crisis Looms Two years ago we first noted the building crisis in the Indian banking system, and now, as Bloomberg reports, the Indian government has stepped in to organize a rescue plan for the nation’s fourth largest private bank as a long-running crisis among shadow lenders threatened to spill over […]
Pondering the Collapse of the Entire Shadow Banking System
Pondering the Collapse of the Entire Shadow Banking System What’s behind the ever-increasing need for emergency repos? A couple of correspondents have an eye on shadow banking. Shadow Banking The shadow banking system consists of lenders, brokers, and other credit intermediaries who fall outside the realm of traditional regulated banking. It is generally unregulated and […]
“Contagion Runs The Risk Of Spreading” In India’s Financial Sector, Rating Agency
“Contagion Runs The Risk Of Spreading” In India’s Financial Sector, Rating Agency India, one of the largest emerging markets in the world, is at serious risk of widespread contagion ripping through its banking sector as many large financial companies have already seen their equity value halved over the last 12 months, S&P Global Ratings said […]
Is the Greatest Bull Market Ever Finally Ending? (Hint: Follow the Money)
Is the Greatest Bull Market Ever Finally Ending? (Hint: Follow the Money) The key here is the gains generated by owning US-denominated assets as the USD appreciates. Is the Greatest Bull Market Ever finally ending? One straightforward approach to is to follow the money, i.e. global capital flows: assets that attract positive global capital flows […]
“They Are Worried About Panic”: China Blocks Bad Economic News As Economy Slumps
“They Are Worried About Panic”: China Blocks Bad Economic News As Economy Slumps China’s Shadow-banking system is collapsing (and with its China’s economic-fuel – the credit impulse), it’s equity market has become a slow-motion train-wreck, its economic data has been serially disappointing for two years, and its bond market is starting to show signs of […]
In Shock Move, India Nationalizes Giant Shadow Bank At Center Of Market Rout
In Shock Move, India Nationalizes Giant Shadow Bank At Center Of Market Rout One week after we reported that India’s NPL crisis finally erupted after IL&FS, a major shadow bank at the heart of India’s economy defaulted in one day on three debt payments, India’s government announced on Monday that it would immediately seize control […]
India’s NPL Crisis Erupts: A Major Shadow Bank Defaults On Three Debt Payments
India’s NPL Crisis Erupts: A Major Shadow Bank Defaults On Three Debt Payments IL&FS Investment Managers, a unit of India’s Infrastructure Leasing & Financial Services (IL&FS) – an Indian infrastructure development and finance company and one of the nation’s largest “shadow banks” – which announced three debt defaults on Friday, said on Saturday morning its […]
Even Mortgage Lenders Are Repeating Their 2006 Mistakes
Even Mortgage Lenders Are Repeating Their 2006 Mistakes You’d think the previous decade’s housing bust would still be fresh in the minds of mortgage lenders, if no one else. But apparently not. One of the drivers of that bubble was the emergence of private label mortgage “originators” who, as the name implies, simply created mortgages […]
Next Mortgage Default Tsunami Isn’t Going to Drown Big Banks but “Shadow Banks”
Next Mortgage Default Tsunami Isn’t Going to Drown Big Banks but “Shadow Banks” As banks pull back from mortgage lending amid inflated prices and rising rates, “shadow banks” become very aggressive. In the first quarter 2018, banks and non-bank mortgage lenders – the “shadow banks” – originated 1.81 million loans for residential properties (1 to […]
Canada Has A Subprime Real Estate Problem, You Just Don’t Know It
Canada Has A Subprime Real Estate Problem, You Just Don’t Know It A few weeks ago, a real estate agent told me about his client. Relatively wealthy older dude, closed on not one but two townhouses he plans on flipping. After some questions regarding who financed such a deal, he explains it was a private […]
Chinese Shadow Bank Lending Unexpectedly Crashes, Sending Total Credit Creation To Two-Year Low
Chinese Shadow Bank Lending Unexpectedly Crashes, Sending Total Credit Creation To Two-Year Low According to most flow-tracking economists (and not their clueless, conventionally-trained peers) when one strips away the noise, there are just two things that matter for the global economy and asset prices: central bank liquidity injections, and Chinese credit creation. This is shown […]
The Role of Shadow Banking in the Business Cycle
THE ROLE OF SHADOW BANKING IN THE BUSINESS CYCLE 1The process of lending and the uninterrupted flow of credit to the real economy no longer rely only on banks, but on a process that spans a network of banks, broker-dealers, asset managers, and shadow banks funded through wholesale funding and capital markets globally. – Pozsaret […]
Central Bank Money Rules the World
Central Bank Money Rules the World Central bank credit that supports markets — is not just creation of the Fed, but by central banks and institutions around the world colluding together. Global markets are too deeply connected these days to consider the Fed in isolation. Since last month’s correction, the world has been watching the […]
BIS Publishes A “Simplified” Map Of China’s Shadow Banking System
BIS Publishes A “Simplified” Map Of China’s Shadow Banking System While China’s shadow banking sector may have been tamed in the past year as a result of an aggressive crackdown by Beijing over the unregulated, gray-market in high interest lending and especially Wealth Management Products or WMPs, it, it still retains an aura of incomprehensibility […]
