DocComment: If At First You Don’t Succeed, Mess With It Some More?

An article summary from the U.K.’s Telegraph appeared today that read (LINK):

Money printing has “limited influence” on growth and more radical measures are needed to stimulate the economy, the newest member of the Bank of England’s rate-setting committee has warned.

The title of the article, at least on the front page of the Financial [...]


Yotai Gap Continues to Enlarge as Corporations Risk Their Balance Sheets To Shore Up Stock Prices

As one of the few American chroniclers of the still-obscure “yotai gap” phenomenon that has been present in Japan for a number of years, I read with interest a ZH post today that discusses it without using the term (LINK).  Here is a graph lifted from that post (click on chart to enlarge):

I [...]


A Feral Pit Of Total War

“When I arrived in Amsterdam recently I took a taxi to my hotel. Over the radio came this uplifting and heartfelt lyric: ‘I’ve had a s**t day and I’ve had enough’ (having gone through airport security I knew exactly how the singer felt). The following day, in the taxi on the way back, [...]


Hang ‘em High

“Measures of central bank balance sheet expansion under-estimate the scale of liquidity support provided during the crisis … there has been a widening of the collateral taken by most central banks in their operations. The taking of imaginative forms of collateral has a history which predates central banking: in the 12th [...]


Eurozone Banks Exiting U.S.

[This research note is from Deutsche Bank's DB Reasearch group.]

Since the outbreak of the financial crisis in 2007, Europe’s banks have been gradually retreating from the US market, thereby making room for others to step in. At their peak in September 2007, euro-area banks held assets equivalent to 50% of all foreign bank assets. [...]


Broke Bank Mountain

Why, for example, do we need a central bank at all? A typical if feeble answer is that we need a lender of last resort. To which the answer is: why? Why do we need a government-appointed entity to support banks that get in over their heads? A typical answer is [...]


JPM’s Whale Problem Still Roiling As Bloomberg News Disputes Key Management Assertion

The blogger’s gift that keeps on giving appears to be Jamie Dimon’s whale of a problem. is taking direct aim at a key assertion the firm’s top execs made just two days ago, in a hard-hitting report today titled JPMorgan Blaming Marks on Traders Baffles Ex-Employees, which begins:

JPMorgan Chase & Co. (JPM)’s assertion that traders [...]


JPM’s Whale of a Problem and Futures Market Scandals May Help Lead to Negative Rates on Bank Deposits

The Telegraph (U.K.) had a terse description of JPM’s Chief Investment Office that helped crystallize my thinking:

The bank stunned Wall Street when it disclosed that a series of bets made by the CIO on the health of major companies had triggered the . The CIO’s job is to invest deposits that the bank has yet [...]


KeithGram: The LIBOR Scandal

By now, most readers are aware that Barclays and probably many other banks have been caught red-handed gaming the London Inter-Bank Offer Rate (LIBOR).

No, I am not going to analyze the “cause”, call for more regulation, propose lawsuits, or lament that “banksters” today are “greedy”. I have a simpler and subtler point.

In the [...]


Libor Pains

“It was when Nick Clegg joined the campaign against Bob Diamond that I started to feel a sliver of sympathy for the now former-boss of Barclays. Not very much sympathy, mind. Just a tiny bit. But put yourself in Bob Diamond’s hand-made crocodile-skin loafers for a moment. You build a business [...]


Global Terror Update

“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in iniquity and born in sin. Bankers own the Earth. Take it away from them, but leave them the power to create [...]