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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. Mezzanine debt is another example of subordinated debt. Subordinated debt holders also lack the upside gain enjoyed by shareholders. Consider asset-backed securities. These are often issued in tranches. Also consider "stress tests".

Banking 71
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Persistent Overoptimism Three Ways: Truckers, Fed Economists, Manufacturers

MishTalk

UPS Freight , the fifth-largest LTL, reported tonnage off 10 percent (matching the record decline reported in the 2009 3Q during the depth of the Great Recession) and shipments down 5 percent year over year (the worst drop since 2008 fourth quarter). Overoptimism 2008-2010 The SEP growth forecast for 2008 never turned negative.

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BIS Slams the Fed; Ridiculous Question of the Day: "Is The Fed Going To Attempt A Controlled Collapse?"

MishTalk

Historical evidence shows that this rarely happens following a balance sheet recession. They encapsulate the self-reinforcing interactions between perceptions of value and risk, risk-taking and financing constraints which translate into financial booms and busts. Financial cycles differ from business cycles.

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Mish's Global Economic Trend Analysis: Ritholtz on Gold and on.

MishTalk

Get Involved The State of the Unions Finances: A Citizens Guide. Balanced Budget Ammendment Sign the Balanced Budget Petition. There exists no back-test for the current era of finance. December 2008 (85). November 2008 (78). October 2008 (108). September 2008 (140). August 2008 (93).

Trends 63
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940 Chinese Firms Halt Trading; China Allows Houses as Margin, Bans Use of Term "Equity Disaster"; Two Rules, Two Questions

MishTalk

Two Rules Every bubble eventually bursts The bigger the bubble the bigger the bust Central banks globally have blown the biggest bubble ever in the wake of the 2008 crash. We have only just begun to see the carnage that is coming. That carnage started in China and it's going to spread. Two Questions How fast? Where Next?

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What You Should Know About Dodd-Frank and What Happens If It’s Rolled Back

Harvard Business

On February 3 President Trump issued an executive order directing the Treasury Department to conduct a sweeping review of financial regulation, including Dodd-Frank , the financial reform bill passed, in 2010, as part of the Obama administration’s response to the 2008 financial crisis and subsequent recession. Nick Lovegrove.

Banking 28
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Reflections on 2013; What's Important, What's Not? What's Ahead?

MishTalk

Had I suggested in 2007 that the Fed balance sheet expansion of $75 billion a month would have been considered "tightening" people would have thought I was nuts. Total credit in the economy (total social financing) showed a 40 per cent rise in November over the prior month and is on course for growth this year of almost 20 per cent.