INDUSTRY INSIGHTS YOUR PEERS ARE READING
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. It is clear that banking institutions, state-owned enterprises and local government financing vehicles have remained relatively insensitive to, or been able to circumvent, higher interest rates and bond yields, central government curbs on the shadow banking sector, and the rampant real estate and infrastructure markets. MORE
BitGold just completed a financing for C$18 million, which included some top name institutional investors. After this financing, BitGold’s two main owners are the shareholders of GoldMoney and Roy Sebag, whose understanding of gold is as deep as anyone I have ever met. The balance sheet also includes a lot of outstanding short-duration lending facilities, adding more risk. BitGold USA Effective today, BitGold Announces Platform Launch in the United States. MORE
trillion balance sheet at its Sept. The good news is that, while the current expansion is quite old in chronological terms, it is still relatively young in terms of the health of household finances,” Dudley said in a speech to the National Retail Federation. MORE
Finance reports Government About to Destroy American Mortgages Permanently. The answer to that question is that we no longer have things like 20-year and 30-year mortgages because banks are not going to put that type of mortgage on their balance sheets. I do agree that most mortgages will be variable/adjustable, as a bank you just can’t take the interest rate risk by offering longer term fixed rates if you hold those loans on your balance sheet. MORE
trillion balance sheet is leveraged nearly 49-to-1. As a group, these three banks have some €4 trillion in assets on their balance sheets, supported by €129.3 The authors note "the bias of the present system" in France, "which encourages excessive financial leverage, and contributes to a dearth of equity financing for innovative projects and an inefficient allocation of resources." MORE
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. Such episodes often coincide with banking crises, which in turn tend to go hand in hand with much deeper recessions – balance sheet recessions – than those that characterise the average business cycle. MORE
If you’re not a numbers person, finance is daunting. Even if you don’t need to know a lot about finance to do your day-to-day job, the more conversant you are on the subject, the better off you’ll be, according to Richard Ruback, a professor at Harvard Business School and the coauthor of the HBR Guide to Buying a Small Business. Stop avoiding finance because you’re afraid of numbers. “Finance and accounting are very simple. MORE
Babacan said the central bank was taking the necessary steps to deal with the situation, and said Turkey was protected against the swings in the market by its sound finances. The balance sheet of the government, the banks and households are quite well protected against market volatility.” MORE
Meanwhile the Institute of International Finance forecasted net capital flows for emerging markets in 2015 would be negative for the first time since 1988. Furthermore, there will be new complexities in managing the balance sheet and navigating wider financing decisions; particularly as the “carry trade” (the strategy of borrowing at low interest rates in developed countries and investing in higher yielding emerging markets), becomes less attractive. MORE
For me, the bigger point is the most obvious: portfolio firms are more profitable and successful – they have the profitability, balance sheet, higher quality resource (read: people), and time to make good strategic decisions. BCG report: Ending the Era of Ponzi Finance. MORE
A finance ministry official confirmed on Friday that state revenues had collapsed this month. “It’s As late as yesterday I read numerous mainstream media reports that Syriza would win by three to five percent and would need to form an unstable coalition to rule. MORE
These so-called “stranded assets,” sitting on petro-company balance sheets, are essentially worthless. Economy Sustainability Finance & Accounting Digital Article MORE
He calls this “acting your wage” Invest – Put your money to work; Same argument I made here that getting retired has more to do with the balance sheet (assets) than the income statement. Basically, pay off my credit cards monthly, never carry a balance. MORE
A possible explanation for the SEP’s prediction of a rapid catch-up to potential GDP after 2009 is that participants overestimated the efficacy of monetary policy in the aftermath of a so-called balance-sheet recession. MORE
Over the last few decades, countless risky financial products were sold to investors using harmless sounding terms like “credit default swap”, “mortgage backed security”, “special purpose vehicle” and “off-balance sheet financing”. About. Book Shop. Archive. Definitions. MORE
Get Involved The State of the Unions Finances: A Citizens Guide. Balanced Budget Ammendment Sign the Balanced Budget Petition. Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. MISHS. Global Economic. MORE
Germany Backtracks on Banking Union MarketWatch reports Germany appears to backtrack on EU banking deal EU finance ministers have promised to agree on a so-called single-resolution mechanism--consisting of more centralized decision-making and financing for the shuttering or downsizing of failing banks--before the end of the year. At the heart of the disagreement is what to do when so-called bank resolution funds, financed by the banking sector, run out of money. MORE
It does not need to borrow money from foreign countries to finance its ongoing deficit (because there is no deficit). The key point is that as long as Greece runs a current account surplus, it can finance its way via taxation, without further Troika meddling. MORE
Chicago finances are even worse than I thought which is saying quite a bit because I have written about the sorry state of Chicago finances on numerous occasion. Many of these uses of bond proceeds are not eligible for tax-exempt financing under the federal tax code." MORE
On September 4, ECB President pulled out a financial bazooka including a pledge to build up the ECB''s balance sheet by another €1 trillion. Bundesbank president Jens Weidmann, who also sits on the ECB’s policy making governing council, has already objected to the plan to buy ABS, which he says leaves the central bank’s balance sheet too exposed to risks. In this case, the stench on Greek bank balance sheets will not go away. MORE
Scholars from a number of fields have offered explanations for this transition, including globalization, technological change, declining unionization, heightened product market competition, and the rise of finance. As my colleague Peter Cappelli recently argued , automation technologies are profitable, in part, because they are considered an asset on a firm’s balance sheet that can be depreciated. MORE
Many an economics and finance course later, I see that the layers of complexities to the 2008 financial crisis are innumerable. Banks would rather store their money at the Fed than lend it to finance potentially risky projects. MORE
Sharon Bowles, the chair of the parliament’s economics and finance committee, said the revisions were essential to accommodate national central banks that “do not have big balance sheets” and need extra guarantees from the state when lending to struggling lenders. In lengthy negotiations last month the EU reached a deal on how to handle failed banks. The European parliament was set to ratify the deal in a matter of days. Today, the UK decided it doesn''t like the deal. MORE
Get Involved The State of the Unions Finances: A Citizens Guide. Balanced Budget Ammendment Sign the Balanced Budget Petition. Reader Question: Does the Fed Balance Sheet Properly Reflect QE Announcements? The feds balance sheet doesnt reflect it. MORE
Of course, the retrenchment of global finance also reflects pressure on banks from regulators and shareholders to rebuild their capital and liquidity. China’s four largest banks have quadrupled the share of foreign assets on their balance sheets since 2007 to $1 trillion—that make gives them larger foreign portfolios than German or Italian banks. As European banks retreat, China is leading something of a changing of the guard in global finance. MORE
The step, allowed by new legislation that gives banking supervisors more power to intervene, followed an outside audit of Heta''s balance sheet that exposed a capital hole of up to 7.6 The finance ministry noted that creditors can be forced to contribute to the costs of winding down Heta - or "bailed in" - under new European legislation that Austria adopted this year so that taxpayers do not have to shoulder the entire burden. MORE
Energy-efficient lighting, motors, and other hardware continue to make good sense for many firms, whether financed on the balance sheet or by third parties who provide the upfront capital and then share the savings on future power bills. Apple’s huge size, power use, and balance sheet allow it to jump in faster than many other firms, but there is plenty of opportunity to lay the groundwork today, while saving money and helping sustain the environment. MORE
In business, this applies to areas ranging from finance and operations to personnel policies, culture and compliance. Think about this: Business fitness includes a strong balance sheet. Have you ever had to give up your favorite pair of pants because you gained too much weight? If so, you know how uncomfortable it can be when what should fit really doesn’t. In matters of business as well as wardrobe, fit makes a difference. MORE
Fab-Five On November 16, Yahoo Finance reported How A Monster Year For Amazon, Google And Facebook Is Carrying The Stock Market. Anyone recall the logic in the 1960s and 1970s that suggested there were only 50 stocks one needed to look at, and those 50 stocks could never go wrong? MORE
Through a coordinated, systemic, prolonged intervention with dozens of institutions and thousands of individual participants, new growth of the local companies we trained has directly created over 1033 jobs, fueled by dozens of new private sector financings. We taught lending officers how to talk to businesses that were afraid that taking debt onto their balance sheets was riskier than maintaining a flat-growth business. MORE
Besides financing the bubble with new money, the Chinese government has suspended IPOs, cut trading fees, and relaxed requirements on margin loans (for example, Chinese retail investors can now use their apartments as collateral ). MORE
The figures follow a deal agreed by European regulators earlier this month that will bring in so-called bail-in rules for senior bondholders from 2016, two years earlier than envisaged by finance ministers in their common position agreed in June. 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. MORE
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." MORE
The founder of modern international finance, Amschel Rothschild, gave the aims and direction of his enterprise simple instruction when he declared he cared not what governments did, all he wanted was the right to control, print their money. When I began investing, one looked at the real property on balance sheets. I received several emails regarding my post on Risk-Free Banking and Fractional Reserve Lending that I would like to share. MORE
To restore its balance sheet, it had to sell half the business. The board’s eyes and ears throughout the corporation — principally line management, but assisted by the internal audit, risk, quality, finance, and strategy groups — enact a system designed to surface predictable problems as quickly as possible and deal with them as locally as possible. Consequently, the finance group, the risk organization, and the nonexecutive directors do most of this work. MORE
Get Involved The State of the Unions Finances: A Citizens Guide. Balanced Budget Ammendment Sign the Balanced Budget Petition. MISHS. Global Economic. Trend Analysis. Contact. Advertisers. Sitka Pacific. Recent Posts. Featured Links. MORE
Roughly one in five of the euro zone''s top lenders failed landmark health checks at the end of last year but most have since repaired their finances, the European Central Bank said on Sunday. 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. MORE
That strengthened investment banks’ balance sheets by forcing them to scale back and to change the nature of the risks they take. As a result, their balance sheets are half as large on a risk-adjusted basis, and the capital they hold against trading positions has doubled over the past decade, our research shows. Less apparent to the outside world is how much banks are also investing in controls, especially in their compliance, risk, and finance divisions. MORE
In effect, they all had skin in the game, which remains one of the most elusive elements of modern finance. It breeds indifference, which in turn breeds a yawning gap between underwriters, whose balance sheets absorb risk (the risk takers), and customers, whose enterprises create risks (the risk makers). MORE
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. MORE
Get Involved The State of the Unions Finances: A Citizens Guide. Balanced Budget Ammendment Sign the Balanced Budget Petition. Bernanke says the US economy is solid enough that the Fed can begin tapering its balance sheet purchases later this year. MISHS. MORE
MishTalk
AUGUST 7, 2013
Get Involved The State of the Unions Finances: A Citizens Guide. Balanced Budget Ammendment Sign the Balanced Budget Petition. Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. MISHS. Global Economic.
Harvard Business
MARCH 31, 2017
If you’re not a numbers person, finance is daunting. Even if you don’t need to know a lot about finance to do your day-to-day job, the more conversant you are on the subject, the better off you’ll be, according to Richard Ruback, a professor at Harvard Business School and the coauthor of the HBR Guide to Buying a Small Business. Stop avoiding finance because you’re afraid of numbers. “Finance and accounting are very simple.
Consultants Mind
FEBRUARY 7, 2016
He calls this “acting your wage” Invest – Put your money to work; Same argument I made here that getting retired has more to do with the balance sheet (assets) than the income statement. Basically, pay off my credit cards monthly, never carry a balance.
Consultants Mind
SEPTEMBER 2, 2016
For me, the bigger point is the most obvious: portfolio firms are more profitable and successful – they have the profitability, balance sheet, higher quality resource (read: people), and time to make good strategic decisions. BCG report: Ending the Era of Ponzi Finance.
Harvard Business
APRIL 14, 2016
These so-called “stranded assets,” sitting on petro-company balance sheets, are essentially worthless. Economy Sustainability Finance & Accounting Digital Article
MishTalk
AUGUST 6, 2013
Get Involved The State of the Unions Finances: A Citizens Guide. Balanced Budget Ammendment Sign the Balanced Budget Petition. Reader Question: Does the Fed Balance Sheet Properly Reflect QE Announcements? The feds balance sheet doesnt reflect it.
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Tom Spencer
AUGUST 25, 2018
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.
MishTalk
SEPTEMBER 8, 2017
trillion balance sheet at its Sept. The good news is that, while the current expansion is quite old in chronological terms, it is still relatively young in terms of the health of household finances,” Dudley said in a speech to the National Retail Federation.
Tom Spencer
NOVEMBER 17, 2018
Many an economics and finance course later, I see that the layers of complexities to the 2008 financial crisis are innumerable. Banks would rather store their money at the Fed than lend it to finance potentially risky projects.
MishTalk
MARCH 1, 2015
The step, allowed by new legislation that gives banking supervisors more power to intervene, followed an outside audit of Heta''s balance sheet that exposed a capital hole of up to 7.6 The finance ministry noted that creditors can be forced to contribute to the costs of winding down Heta - or "bailed in" - under new European legislation that Austria adopted this year so that taxpayers do not have to shoulder the entire burden.
Tom Spencer
NOVEMBER 27, 2011
Over the last few decades, countless risky financial products were sold to investors using harmless sounding terms like “credit default swap”, “mortgage backed security”, “special purpose vehicle” and “off-balance sheet financing”. About. Book Shop. Archive. Definitions.
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MishTalk
NOVEMBER 20, 2015
A possible explanation for the SEP’s prediction of a rapid catch-up to potential GDP after 2009 is that participants overestimated the efficacy of monetary policy in the aftermath of a so-called balance-sheet recession.
Joellyn Sargent
JANUARY 21, 2014
In business, this applies to areas ranging from finance and operations to personnel policies, culture and compliance. Think about this: Business fitness includes a strong balance sheet. Have you ever had to give up your favorite pair of pants because you gained too much weight? If so, you know how uncomfortable it can be when what should fit really doesn’t. In matters of business as well as wardrobe, fit makes a difference.
MishTalk
OCTOBER 26, 2014
Roughly one in five of the euro zone''s top lenders failed landmark health checks at the end of last year but most have since repaired their finances, the European Central Bank said on Sunday. 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.
MishTalk
DECEMBER 4, 2013
Finance reports Government About to Destroy American Mortgages Permanently. The answer to that question is that we no longer have things like 20-year and 30-year mortgages because banks are not going to put that type of mortgage on their balance sheets. I do agree that most mortgages will be variable/adjustable, as a bank you just can’t take the interest rate risk by offering longer term fixed rates if you hold those loans on your balance sheet.
MishTalk
NOVEMBER 20, 2013
trillion balance sheet is leveraged nearly 49-to-1. As a group, these three banks have some €4 trillion in assets on their balance sheets, supported by €129.3 The authors note "the bias of the present system" in France, "which encourages excessive financial leverage, and contributes to a dearth of equity financing for innovative projects and an inefficient allocation of resources."
MishTalk
JUNE 26, 2013
Get Involved The State of the Unions Finances: A Citizens Guide. Balanced Budget Ammendment Sign the Balanced Budget Petition. Bernanke says the US economy is solid enough that the Fed can begin tapering its balance sheet purchases later this year. MISHS.
Harvard Business
OCTOBER 31, 2017
That strengthened investment banks’ balance sheets by forcing them to scale back and to change the nature of the risks they take. As a result, their balance sheets are half as large on a risk-adjusted basis, and the capital they hold against trading positions has doubled over the past decade, our research shows. Less apparent to the outside world is how much banks are also investing in controls, especially in their compliance, risk, and finance divisions.
MishTalk
DECEMBER 18, 2013
The figures follow a deal agreed by European regulators earlier this month that will bring in so-called bail-in rules for senior bondholders from 2016, two years earlier than envisaged by finance ministers in their common position agreed in June. 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.
MishTalk
JANUARY 26, 2014
Babacan said the central bank was taking the necessary steps to deal with the situation, and said Turkey was protected against the swings in the market by its sound finances. The balance sheet of the government, the banks and households are quite well protected against market volatility.”
MishTalk
JULY 7, 2015
Besides financing the bubble with new money, the Chinese government has suspended IPOs, cut trading fees, and relaxed requirements on margin loans (for example, Chinese retail investors can now use their apartments as collateral ).
MishTalk
NOVEMBER 19, 2015
Fab-Five On November 16, Yahoo Finance reported How A Monster Year For Amazon, Google And Facebook Is Carrying The Stock Market. Anyone recall the logic in the 1960s and 1970s that suggested there were only 50 stocks one needed to look at, and those 50 stocks could never go wrong?
Harvard Business
NOVEMBER 25, 2016
Energy-efficient lighting, motors, and other hardware continue to make good sense for many firms, whether financed on the balance sheet or by third parties who provide the upfront capital and then share the savings on future power bills. Apple’s huge size, power use, and balance sheet allow it to jump in faster than many other firms, but there is plenty of opportunity to lay the groundwork today, while saving money and helping sustain the environment.
MishTalk
JULY 11, 2014
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. Such episodes often coincide with banking crises, which in turn tend to go hand in hand with much deeper recessions – balance sheet recessions – than those that characterise the average business cycle.
MishTalk
JANUARY 25, 2015
A finance ministry official confirmed on Friday that state revenues had collapsed this month. “It’s As late as yesterday I read numerous mainstream media reports that Syriza would win by three to five percent and would need to form an unstable coalition to rule.
MishTalk
APRIL 7, 2014
Sharon Bowles, the chair of the parliament’s economics and finance committee, said the revisions were essential to accommodate national central banks that “do not have big balance sheets” and need extra guarantees from the state when lending to struggling lenders. In lengthy negotiations last month the EU reached a deal on how to handle failed banks. The European parliament was set to ratify the deal in a matter of days. Today, the UK decided it doesn''t like the deal.
MishTalk
JANUARY 28, 2014
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."
Harvard Business
OCTOBER 20, 2016
Meanwhile the Institute of International Finance forecasted net capital flows for emerging markets in 2015 would be negative for the first time since 1988. Furthermore, there will be new complexities in managing the balance sheet and navigating wider financing decisions; particularly as the “carry trade” (the strategy of borrowing at low interest rates in developed countries and investing in higher yielding emerging markets), becomes less attractive.
Harvard Business
SEPTEMBER 25, 2017
Of course, the retrenchment of global finance also reflects pressure on banks from regulators and shareholders to rebuild their capital and liquidity. China’s four largest banks have quadrupled the share of foreign assets on their balance sheets since 2007 to $1 trillion—that make gives them larger foreign portfolios than German or Italian banks. As European banks retreat, China is leading something of a changing of the guard in global finance.
MishTalk
DECEMBER 9, 2013
It does not need to borrow money from foreign countries to finance its ongoing deficit (because there is no deficit). The key point is that as long as Greece runs a current account surplus, it can finance its way via taxation, without further Troika meddling.
MishTalk
SEPTEMBER 23, 2013
The founder of modern international finance, Amschel Rothschild, gave the aims and direction of his enterprise simple instruction when he declared he cared not what governments did, all he wanted was the right to control, print their money. When I began investing, one looked at the real property on balance sheets. I received several emails regarding my post on Risk-Free Banking and Fractional Reserve Lending that I would like to share.
MishTalk
DECEMBER 17, 2013
Germany Backtracks on Banking Union MarketWatch reports Germany appears to backtrack on EU banking deal EU finance ministers have promised to agree on a so-called single-resolution mechanism--consisting of more centralized decision-making and financing for the shuttering or downsizing of failing banks--before the end of the year. At the heart of the disagreement is what to do when so-called bank resolution funds, financed by the banking sector, run out of money.
MishTalk
JUNE 30, 2013
Get Involved The State of the Unions Finances: A Citizens Guide. Balanced Budget Ammendment Sign the Balanced Budget Petition. MISHS. Global Economic. Trend Analysis. Contact. Advertisers. Sitka Pacific. Recent Posts. Featured Links.
MishTalk
DECEMBER 26, 2013
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. It is clear that banking institutions, state-owned enterprises and local government financing vehicles have remained relatively insensitive to, or been able to circumvent, higher interest rates and bond yields, central government curbs on the shadow banking sector, and the rampant real estate and infrastructure markets.
Harvard Business
JANUARY 16, 2017
To restore its balance sheet, it had to sell half the business. The board’s eyes and ears throughout the corporation — principally line management, but assisted by the internal audit, risk, quality, finance, and strategy groups — enact a system designed to surface predictable problems as quickly as possible and deal with them as locally as possible. Consequently, the finance group, the risk organization, and the nonexecutive directors do most of this work.
MishTalk
APRIL 1, 2015
Chicago finances are even worse than I thought which is saying quite a bit because I have written about the sorry state of Chicago finances on numerous occasion. Many of these uses of bond proceeds are not eligible for tax-exempt financing under the federal tax code."
Harvard Business
JULY 12, 2017
In effect, they all had skin in the game, which remains one of the most elusive elements of modern finance. It breeds indifference, which in turn breeds a yawning gap between underwriters, whose balance sheets absorb risk (the risk takers), and customers, whose enterprises create risks (the risk makers).
MishTalk
JUNE 26, 2015
BitGold just completed a financing for C$18 million, which included some top name institutional investors. After this financing, BitGold’s two main owners are the shareholders of GoldMoney and Roy Sebag, whose understanding of gold is as deep as anyone I have ever met. The balance sheet also includes a lot of outstanding short-duration lending facilities, adding more risk. BitGold USA Effective today, BitGold Announces Platform Launch in the United States.
Harvard Business
MARCH 30, 2017
Scholars from a number of fields have offered explanations for this transition, including globalization, technological change, declining unionization, heightened product market competition, and the rise of finance. As my colleague Peter Cappelli recently argued , automation technologies are profitable, in part, because they are considered an asset on a firm’s balance sheet that can be depreciated.
Harvard Business
JANUARY 24, 2017
Through a coordinated, systemic, prolonged intervention with dozens of institutions and thousands of individual participants, new growth of the local companies we trained has directly created over 1033 jobs, fueled by dozens of new private sector financings. We taught lending officers how to talk to businesses that were afraid that taking debt onto their balance sheets was riskier than maintaining a flat-growth business.
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