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European Banks Dump Massive Amounts of Subordinated Debt on Investors

MishTalk

It is the highest such volume since the $122.4bn seen in 2008 according to Dealogic, the data provider. Details show the alleged rainy-day fund is a pathetic €12.5bn of joint funds not available until 2020, even though 128 banks covered in the agreement have an aggregate balance sheet somewhere between €26 trillion and €27 trillion.

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Persistent Overoptimism Three Ways: Truckers, Fed Economists, Manufacturers

MishTalk

As surface transportation’s peak period ends for the year, and trucking eyes the traditionally slowest time for the industry as first quarter 2016, economic signals are, at best, mixed. Overoptimism 2008-2010 The SEP growth forecast for 2008 never turned negative. The actual growth rate for 2008 turned out to be –2.8%—the

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Mish's Global Economic Trend Analysis: FHA Swamped By Defaults.

MishTalk

According to Ligon, the only way the FHA can avoid a bailout is to reduce its market share by lowering maximum loan limits to $325,000 over the next four years, raise credit requirements for borrowers, and institute “burden sharing” with loan originators by reducing insurance coverage from the current 100 percent to 50 percent by 2016.

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FOMC Minutes and Economic Projections: Dissent in Both Directions

MishTalk

Participants also described their views regarding the appropriate path of the Federal Reserves balance sheet. Participants anticipated a gradual decline in the unemployment rate over the forecast period; a large majority projected that the unemployment rate would not reach their estimates of its longer-run level before 2016.

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Google Chrome Approaching World Domination?

MishTalk

Google took over in 2008, introducing its Chrome browser, which caught up with Firefox by 2012. The trouble is, that policy doesn''t take effect until January 2016. The fighting might have finally ended in 2014. That Google deal expired in November. As the clock ticked down, Mozilla announced a new five-year (U.S.-only)

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Laughable Eurozone Banking "Non-Union"; Expect Disorderly Breakup

MishTalk

A big bank collapse would dwarf the available resources; some €473bn of capital has been pumped into EU banks since 2008. Its resolution system will only be up and running from 2016. He notes that the ECB will end up as "supervisor" of 128 banks with an aggregate balance sheet "somewhere between €26 trillion and €27 trillion."

Banking 73