Today's selections
John W Clark
Here's my favourite picks from the last few days:
Although the wise should not be surprised by this development, take note of how poor the health of the banking system is that the banks are now going cap-in-hand to the organisations they used to fund.
So, one may ask "what is a 'bank' these days, if it is so cash-constrained that it must go to sources that are normally it's clients to seek funds in order to keep it's doors open?". This is a very fair question.
A large proportion of the world's banks are skating on very thin ice indeed. Make no mistake about this
- Why 308,127,404 Americans are going to get hosed (Sovereign Man)
This one is for my U.S. readers - a reminder that bank managers are forced spies for the US government.
- European flight to safety grounded (MacroBusiness)
Key data point from this article. The markets seem to be signalling that the door is closed to banks seeking to shore up their balance sheets via capital raising. If that is the case, then their only remaining option is to sell assets (and quickly).
- Debt
Trap Looms in India on Convertible Bonds; Borrowing Costs May
Quadruple for Indian Corporations (Mish)
I don't follow India very closely but some of my readers might find this info useful.
Harry S Dent has an excellent track record. He predicted many aspects of the GFC and the housing market crash in the USA and elsewhere. My rule of thumb is to listen carefully to people with good track records at predicting future trends. For those traders out there, I would recommend you take note of his latest update.
- The Catalonian Blunder (Acting Man)
A great insight into what is really going on in Spain's stricken government and banking sectors.
Until next time, take care out there!
John