Silver as an investment

Category Archives: Shadow Banking

12 Signs That The Inevitable Economic Slowdown Is Now Here

Authored by Michael Snyder via The Economic Collapse blog, Since the election there has been this perception among the American public that the economy is improving, but that has not been the case at all.  U.S. GDP growth for the first quarter was just revised up to 1.2 percent, but that is even lower than […]

Reuters Goes To China, Discovers “Ghost Collateral”

Back in 2014, a scandal erupted when media reports confirmed what many had previously speculated about China’s banking system: namely that much of China’s staggering loan issuance had been built (literally) upon air and that billions (or trillions) in loan collateral had been “rehypothecated” between two, three or many more debtors – or never even […]

The Greatest Financial Bubble In History

Authored by James Rickard svia The Daily Reckoning blog, China is in the greatest financial bubble in history. Yet, calling China a bubble does not do justice to the situation. This story has been touched on periodically over the last year. China has multiple bubbles, and they’re all getting ready to burst. If you make […]

Markets All Too Quiet Ahead Of Inflation, Retail Sales Data

Asian stocks and S&P futures are both feeling the weather this morning, while European stocks are little changed as traders have decided to hold back until today’s key US CPI and retail sales data is released in under two hours. Commodities have posted another modest rebound, driven by a rise in metal prices that has […]

Some Chinese Banks Suspend “Interbank Business” As Regulator Demands That Collateral “Actually Exists”

With “risk” in most of the developed world seemingly a long forgotten four-letter word, as seen by today’s plunge in the VIX to a level not seen in 34 years, traders hoping for some “risk event” have been confined to the recent turmoil in China, where overnight not only did trade data disappoint, with both […]

Chinese Commodities Crash Limit-Down As Wealth Management Product Issuance Collapses

It seems Kyle Bass' warning was extremely timely. The deleveraging of China's $4 trillion shadow banking system just accelerated massively as Bank Wealth Product Issuance crashes 15% month-over-month. With stocks and bonds already plunging, commodities joined the ugliness tonight with Dalian Iron Ore limit down (8%) at the open (not helped by tumbling auto demand). […]

A Rising (Central Bank) Tide Turns Everyone Into A Genius

Authored by Charles Hugh-Smith via OfTwoMinds blog, Until the system implodes–you're a genius. So you've ridden the markets higher–stocks, housing, commercial real estate, bat guano, quatloos, you name it–everything you touch turns to gold. What can we say, bucko, other than you're a genius! It's a market truism that rising tides lift all boats. But […]

Rajan Warns “The Fundamental Problems Of The Financial Crisis Are Still With Us”

Authored by Christof Gisiger via Finanz Und Wirtschaft, Raghuram Rajan, Professor of Finance at the University of Chicago and former governor of the Reserve Bank of India, warns of more turmoil ahead if the developed world fails to adapt to the fundamental forces of global change. It is a pivotal moment on the eve of […]

China Starts 2017 With Highest Number Of Corporate Defaults In History

Back in October 2015, roughly around the bottom of the recent commodity cycle, we reported a stunning statistic: more than half of Chinese companies did not generate enough cash flow to even cover the interest on their cash flow, and as we concluded “it is safe to assume that up to two-third of Chinese commodity […]

On The Edge Of An “Uncontrollable Liquidity Event”: The Definitive Guide To China’s Financial System

While most traders over the past month have been obsessing over developments in Washington, the real action – most of it under the radar – has played out in China, where as discussed over the past few weeks, domestic liquidity has tightened notably, culminating with an unexpected bailout by the PBOC of various smaller banks […]