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Consultant Ninja: A Simple Question about the Credit Markets.

Consultant Ninja

Tuesday, March 31, 2009. A Simple Question about the Credit Markets. Heres my understanding of the current TARP/TARPII/PPIP/etc plans: The major "sick" banks wont lend to businesses, because their balance sheets are tied up with bad assets that they cant sell. March 31, 2009 at 9:52 PM. March 31, 2009 at 10:03 PM.

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How the Great Recession Changed Banking

Harvard Business

The market panicked. The Great Recession of 2007 to 2009 was under way. That strengthened investment banks’ balance sheets by forcing them to scale back and to change the nature of the risks they take. This is most apparent in the credit markets, where revenues have shrunk by more than 40% from pre-crisis peaks.

Banking 28
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Persistent Overoptimism Three Ways: Truckers, Fed Economists, Manufacturers

MishTalk

Of course, there is also persistent overoptimism about earnings growth and stock market expectations. Trucking Industry Entering a Profit-Killing Era of Overcapacity? Trucking Industry Entering a Profit-Killing Era of Overcapacity? So far, the industry does not appear to be doing that. The Fed never sees them coming.

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Germany’s Midsize Manufacturers Outperform Its Industrial Giants

Harvard Business

Most of these companies are private and don’t publish their balance sheets. But when it comes to little-known leaders in their market, Germany has 1,307 “hidden champions,” nine times as many as those two countries combined. Great Britain and France each have more.

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Credit Equals Gold No.1

MishTalk

Industrial and Commercial Bank of China, the world''s largest bank by assets, said on Thursday that it has no plans to use its own money to repay investors in a troubled off-balance-sheet investment product that it helped to market." Industrial & Commercial Bank of China Ltd. Investors should have taken a hit.

Banking 72
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What You Should Know About Dodd-Frank and What Happens If It’s Rolled Back

Harvard Business

And in the market more broadly, there is a sense that certain kinds of bad assets should be avoided.” Career Bankers Alone Can’t Solve the Financial Industry’s Problems. It’s also untrue because the requirement for more capital is about how banks fund their balance sheets, not the size of the balance sheet.

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. A similar crash in public opinion awaits Bernanke for fueling one of the biggest, if not the biggest stock and bond market bubbles in history. Here we are.