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Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation?

MishTalk

Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. What’s fascinating about QE is that it has no transmission mechanism to the real economy except as a weak can-kicking exercise - and even then only by creating enormous distortions in pursuit of minute "wealth effects."

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Apple's Balance Sheet Math: Does Apple Really Have $203 Billion in Usable Cash on Hand as Widely Reported?

MishTalk

Current Liabilities Cash Much Smaller Than You Think I don't often dive into balance sheets, but did so after reading a Market-Watch opinion by Brett Arends. billion in “off-balance-sheet” liabilities. If “off-balance-sheet” is not included in my totals, then subtract another $31.5 For example, he notes $31.5

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Another Unbelievable Stress-Free Test; Whitewash Math and Deferred Tax Assets

MishTalk

The results of the ECB’s examination of balance sheets worth €22tn, known as the Asset Quality Review, will require the 130 lenders who took part in the exercise to adjust the value of their assets in their accounts or prudential requirements. The entire exercise was another stress-free farce.

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"Whatever It Takes" Stage Two; Headwinds Explain Why Draghi Will Fail This Time

MishTalk

Take out the word "Alphie" and substitute "Draghi" and the answer is " Assuage Investors " in yet another can-kicking exercise. Having already cut interest rates to record lows and saying they can go no lower, Draghi is now focused on boosting the ECB’s balance sheet. Hope is really all the ECB has. Headwinds explain why.

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War Between Spain and Germany Erupts Over Next Round of Watered Down Stress Tests; Germany Complains About the "Carry Trade"

MishTalk

Draghize : "Banks do need to fail to prove the credibility of the exercise". Mish : We are carefully scrutinizing several non-critical banks, looking for a couple of scapegoats, hoping to fool the public regarding the credibility of the exercise. Draghize : "If they do have to fail, they have to fail. There’s no question about that."

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The age old tale of financial crises

Tom Spencer

Moreover, balance sheet data from the Federal Reserve shows that the acquired assets have remained fairly consistent in value, indicating that the underlying assets were not altogether a lost cause. Post-failure balance sheets show that Lehmann Brothers actually had twenty billion dollars of assets in excess of its debts.

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ECB President Mario Draghi Announces New Stress Tests; Translating "Draghize"

MishTalk

Draghize : "Banks do need to fail to prove the credibility of the exercise". Mish : We are carefully scrutinizing several non-critical banks, looking for a couple of scapegoats, hoping to fool the public regarding the credibility of the exercise. For those of you who do not speak Draghize I offer these translations.