Tag Archives: banks

Yes, The Banks Will Collapse

10 Wednesday Jun 2020

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As will everything else in the decaying Empire. And, if not for tens of trillion$ in nightly funny money, they – many of them – would have already gone under. They should have been allowed to fail 12 years ago. Even The Atlantic senses something is wrong, even as they refuse to fully acknowledge reality.

After months of living with the coronavirus pandemic, American citizens are well aware of the toll it has taken on the economy: broken supply chains, record unemployment, failing small businesses. All of these factors are serious and could mire the United States in a deep, prolonged recession. But there’s another threat to the economy, too. It lurks on the balance sheets of the big banks, and it could be cataclysmic. Imagine if, in addition to all the uncertainty surrounding the pandemic, you woke up one morning to find that the financial sector had collapsed.

The virus did it! You will wake up to such a report one day in the future. You’ll also wake up to carriers on the ocean floor. And, one day, you’ll learn that your mighty Empire is being violently fragmented into smaller, warring tribal nations. The Atlantic will have ceased publication by then, but some other bunch of idiots will be there to feign astonishment.

The good news is that this will usher in a needed debt jubilee. The bad news is so many won’t survive to see it.

But It’s So Convenient

20 Friday Dec 2019

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Get your direct deposit today?

With reports of direct deposits failing to clear still ongoing, Bloomberg reported that the Federal Reserve was investigating “the second significant disruption in 2019 of a payments service administered by the U.S. central bank.”

As we first reported earlier (see below) key transactions – most notably funding via direct deposits – were delayed after ACH – which stands for the Fed’s Automated Clearinghouse System – experienced delays, but it is now up and running.

“The FedACH service, which processes transactions for commercial banks, is currently operating normally after experiencing delays in processing yesterday afternoon and early this morning,” Jean Tate, a spokesman for the Atlanta Fed which hosts the central bank’s Retail Payments Office processing ACH transactions, said in an e-mailed statement, despite reports that some banks bank clients still had not received their monty.

“Some customers experienced delays in receiving confirmations of yesterday’s transactions. Federal Reserve technical staff continue to investigate the root cause of the issue.”

Not to worry! The sorcerors are looking into it. “Monty,” the root cause of all evil…

The Fed’s Cool New Tool!

12 Monday Aug 2019

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Introducing the amazing new Countercyclical Capital Buffer!!!!!!

Federal Reserve officials are weighing whether to use a tool that could reduce the risk of a credit crunch in a downturn.

The tool is known as the countercyclical capital buffer. It allows the Fed to require banks to hold more loss-absorbing capital should the economy show signs of overheating, or to keep less of it during bad economic times. The buffer applies generally to banks with more than $250 billion in assets, including firms such as JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc.

The Fed’s board of governors so far hasn’t used the tool, approved in 2016. Its rule on the buffer says it should turn it up when economic risks are “meaningfully above normal” and reduced when they “abate or lessen.”

Now, some Fed officials are debating whether it is time to use the tool, which could provide banks with additional lending firepower in a subsequent downturn. It isn’t clear when they might make a decision.

I have obtained an exclusive image of this cool new tool:

Screenshot 2019-08-12 at 10.35.26 AM

Say “Goodbye” to the Banks?

26 Wednesday Jun 2019

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It would be so nice. Mark Nestmann says it’s possible.

I look forward to the day when the fractional reserve banking system takes its last breath. If you’re tired of dealing with soaring banking fees, stifling compliance requirements, or the threat of “de-risking,” you have reason to smile. In the not-too-distant future, banks will be obsolete.

That’s a neat little history of the evolution and devolution of banking, too.

Debanking: The Banksters are the Mortal Enemies of the Free People

18 Thursday Apr 2019

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“Chase is not involved with any like, you know, alt right people or anything.” – Chase Bank SJW1234

Since Vox Day left a few years ago, and since Pat Buchanan is available elsewhere, I really haven’t paid much attention lately to WND. But, this story on a horrific trend in US banking is worth the read.

Chase Bank is shutting down accounts of people and organizations with controversial political views, according to an undercover investigation by James O’Keefe’s Project Veritas.

O’Keefe’s latest probe found that Chase, without explanation, abruptly closed the account of a political activist that had existed for 15 years in good standing.

…

“First we get silenced on social media, which is a new public square. Then PayPal. And then I get debanked,” he said.

“It’s a very dangerous trend.”

Too big to fail? I’d say just about right for breaking up. The associated video:

I’d say boycott – and we should – but we may run out of businesses. You know, there should be an alternative to the banking stranglehold monopoly. That would involve an alternative to the Satanic Federal Reserve. I think I have a plan that should do the trick. All we need is an honest Congress and a President with a set of … nevermind.

Janet Yellen Channels Her Inner Pinocchio

27 Tuesday Jun 2017

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This stuff writes itself.

Fed Chair Janet Yellen said Tuesday that banks are “very much stronger” and another financial crisis is unlikely anytime soon.

Speaking during an exchange in London with British Academy President Lord Nicholas Stern, the central bank chief said the Fed has learned lessons from the financial crisis and has brought stability to the banking system.

…

She also made a bold prediction: that another financial crisis the likes of the one that exploded in 2008 was not likely “in our lifetime.” The crisis, which erupted in September 2008 with the implosion of Lehman Brothers but had been stewing for years, would have been “worse than the Great Depression” without the Fed’s intervention, Yellen said.

 

 

I think I know what “no crisis like 2008 in our lifetime” means. The poor woman must be terminally ill. That or maybe she/they know the next one will be worse than 2008.

20140129Jay_image002

Kitco.

“Had been stewing for years….” Maybe that’s why, as the article later pointed out, it caught the Fed completely off guard.

I do like her giving the Fed credit for preventing the Greater Depression. Rich.

The Fed, if you recall actual history, prolonged a downturn, a recession, into the Great Depression of the 1930’s. They have experience wrecking the economy. And it’s really too soon to tell about the Greater Depression, although I’ve seen stats from two economists that show the 2008 crisis was every bit as bad as that of the 30’s and that we have yet to recover from it.

Wait! Now I know what she means. She knows the 2008 crisis never really ended. Therefore its continuation this year or next coupled with a new worsening crash technically won’t be another crisis – it’ll be the same one.

That or she’s sick.

Thoughts and prayers.

 

Perrin Lovett is soon coming to Patreon. You can be part of the revolution.

Banking Explained In A Few Frames

27 Sunday Nov 2016

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As Rat says, they really can’t make this stuff up. Today’s Pearls Before Swine cartoon accurately and easily sums up your relationship with the criminal banking industry.

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Pastis, 11/27/16.

There’s a reason I read Pearls everyday. Aside from Pastis, Scott Adams, and maybe the weather, I cannot think of any reason to consult any “news” paper these days.

Risky Banking Business

22 Tuesday Nov 2016

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Just last week I told you about Citi’s criminal plans to prohibit cash. It’s part of the greater scheme to steal your wealth in addition to a great inconvenience.

Now, this week, news comes that Citigroup is the riskiest bank in America.

A global financial regulator declared three of America’s largest banks sources of higher risk to the world’s financial system compared to last year, requiring them to hold more capital as a sort of insurance against failure and the resulting ripple effects across the global economy. The announcement on Monday came less than two weeks after banking industry deregulation-friendly candidate Donald Trump won the presidential election.

The Basel, Switzerland-based Financial Stability Board (FSB) will, starting in January 2018, require Citigroup Inc. to have a 2.5 percent capital buffer—the second-highest risk bracket—compared to last year’s 2 percent requirement, and Bank of America Corp. needs to keep 2 percent of its capital available, above last year’s 1.5 percent. Morgan Stanley, however, was moved to the lowest risk bracket, with a capital buffer of just 1 percent, down from 1.5 percent last year.

This move is intended to shore up banking reserves and protect the public from future bailouts. Rest assured however that if the time comes, your taxes will be made readily available to the banksters.

At least the warning is out. The entire banking industry is in roughly the same shape it was in back in 2008. As to Citi’s perdicament, it couldn’t happen to a nicer bank.

Now, here’s a better, happier story:

More Christmas Tie!

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The Financial Crisis Recovery Crisis

28 Wednesday Sep 2016

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Remember the financial crisis? And I mean from your own personal experience. Of course you do. Now, remember the recovery – again from experience and not what the media and politicians lied about. That ones a little harder, eh? There wasn’t much of a recovery honestly.

Now the recovery in name only is in crisis. Historically we’re due for another recession at this point. And the next one will be carrying the baggage of the last in addition to new problems.

joker_money_burn

At least the Joker had a plan – chaos.

Like the fun from 2008, this next round will center on the funny money-inflated banking industry. Deutsche Bank will be playing the part of Lehman Brothers or AIG (or both).

Europe’s biggest lender Deutsche Bank has lost more than half of its value since January, posing a threat to the stability of other banks across the continent. Some analysts are worried it could invoke a large-scale crisis, bigger than in 2008.

After a massive sell-off on Monday, Deutsche Bank’s market value shrank to €14.5 billion. In dollar terms it is only $2 billion more than the $14 billion penalty the bank faces from the United States Department of Justice over its mortgage-backed securities business before the 2008 global crisis.

Deutsche’s problems have raised questions about the health of other big European lenders. The share price of the Royal Bank of Scotland has plunged 13 percent and Italy’s UniCredit is down 12 percent this month. The Bloomberg Europe 500 Banks and Financial Services Index is down 4.2 percent for September. This is the worst result since June, when the Brexit referendum heavily hit the markets.

The problems of Deutsche Bank are putting the German government in a difficult dilemma, as it must decide whether to save the bank, whose assets are valued at about €1.8 trillion, half the size of the German economy.

Get that? A crisis bigger than 2008. That’s because this one is still tainted by the problems of 2008 which were never dealt with.

Germany is working on a rescue plan but that is just for and because of one bank. What about the others?

There was a secret rescue of sorts after 2008. The Federal Reserve printed up and gave away (loaned to be technical) about $16 Trillion. All of it went to the banks. The banks did nothing with the money; I’ve talked about this before. Maybe a third of the fake cash was gifted to foreign banks – mainly European. The same banks that are in trouble again. The numbers are hard to figure but Deutsche got hundreds of Billion$.

But that doesn’t mean it didn’t accept government rescue money during the financial crisis. Consider the following:

  • As one of the largest counterparties of failed insurer AIG, Deutsche Bank received $11.8 billion of the funds used to bail out AIG. [2]
  • The Federal Reserve made emergency low-cost funds widely available to foreign as well as US member institutions through its discount window. Deutsche Bank was the second heaviest user of such funds, borrowing more than $2 billion. [3]
  • The Federal Reserve also created a program known as the Term Asset-Backed Securities Lending Facility, which allowed banks to use their assets, including troubled or hard-to-value assets, as collateral for short term loans. Deutsche Bank was the largest user of the program, sending the Fed more than $290 billion worth of mortgage securities.[4]

To most people, who don’t make fine distinctions among the particular government programs that funneled their tax dollars to financial institutions, this probably looks an awful lot like a bailout.

This has been on my radar since at least 2013. I focused on the derivatives bubble then. It’s amazing that it has lasted this long.

And, it can’t last much longer. This crisis will probably be the main story of this fall, rather than the clown-show of the U.S. election.

Sadly, the people “in charge” have no idea how to combat these problems, which they created. Their only solutions will be more of the same. For us, that means more suffering. prepare now; this could get very rough.

Getting The Business

20 Wednesday Jul 2016

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Money reports there were fewer small business start-ups these days in America:

Bad news for aspiring entrepreneurs: Now might not be the best time to launch your own business.

Total entrepreneurial activity in the U.S.—measured by the number of people starting and operating new businesses—fell to 12% in 2015, from 14% in 2014, according to a report released Tuesday by Babson College. The drop reverses upward growth in small business activity during the previous four years.

The findings could indicate that employees are satisfied with their jobs and unwilling to strike out on their own. But the research could also show a lack of confidence in the small business environment in the wake of the recession, Babson professor Donna Kelley told CNBC. The Small Business Optimism Index, a metric from the National Federation of Independent Business, has remained below its 42-year average since the recession.

I find it interesting that commentators keep throwing around “since the last recession” and “the wake of the recession” so much. Are they talking about the 2008 financial crisis recession? You know, the one that will soon be a decade past. Or do they really mean the current or immediate future recession? We are historically overdue.

Ebay.

This story is a little personal for me as I launched (full-time) my small business this summer. I’ve had several in the past – all failures. This time will be different (as I’ve said before). A business idea, even if it’s the very best idea in the world, isn’t easy to get off the ground anymore. Big, existing, and stagnant business dinosaurs join with the government to make the start-up process as painful as possible.

Aside from the licenses, taxes, regulations, inspections, prohibitions, and general meddling, the corporatist/banking/state cabal has seen to it that your potential customers and investors are not in the best position to help you with your incredible idea launch – they too still recover from “the last recession”.

You’ve got the likes of Speaker Paul Ryan who promises to crack down on job-taking and nightclub-shooting immigrants just after he rubber-stamps another 300,000 of them coming in on visas.

It’s amazing that any small business starts today. I’m not so sure about that idea of employee satisfaction with existing work. CNBC reports on the woes of “regular” employment, the loss of jobs and pay, even on Wall Street. This story deals with Wall Street banks – those very entities that OWN America… If their employees are getting the short end of the stick, what does that suggest about the rest of the workforce?

Anyway, I’m plowing ahead with my new enterprise. Of late I have finally developed an email list of sorts. Someone important once said, “You’re an idiot if you don’t have a list.” I was an idiot up until last week… In my defense, I was still recovering “from the recession.”