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Chinese Banks Hemorrhaging Deposits, 1st Quarterly Drop Since 1999; Banks Offer iPhones, Even Cars for Large Deposits

MishTalk

Chinese banks have experienced an outflow of deposits for the quarter for first time since 1999. Customers are attracted to trust funds and the stock market which has been on a tear, up 43% in the last six months. The effective yield on the Mercedes is approximately seven percent!

Banking 74
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Is the Stock Market in Big Trouble?

The Fearless Marketer

Do you remember the stock market crash of 2008? It plummeted because Congress rejected the bank bailout bill. I remember monitoring the news closely, and on the week of September 22 there was heated discussion about the bank bailout bill. So, that week, I took 100% of my money out of the stock market and put it in cash.

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Asset Management – Client Segmentation (Part 3 of 4)

Tom Spencer

Large mutual funds have strong relationships with banks, where they are able to pay a trailer fee to bank investment advisors to market their product. In countries with concentrated banking sectors, the banks will have enough scale and cross-selling opportunities to have their own major asset management divisions.

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Argentine Central Bank Chief Quits in Currency Dispute; Hyperinflation On the Way?

MishTalk

On Tuesday evening, Argentine President Cristina Fernández accused Juan Carlos Fábrega, head of Argentina’s central bank, of " provoking a devaluation of the peso ". In response Head of Argentine Central Bank Quits. There was a sharp sell-off in the benchmark Merval stock index after Mr Fábrega’s departure was announced.

Banking 69
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Pettis on Strains in China's Banking System; Avoiding the Fall

MishTalk

Next year will be a very important year for China because possible strains in the banking system and the intensity with which the reformers present their case will give us a better sense both of how much debt capacity the country retains and of how well positioned Xi Jinping and his allies are to implement the needed reforms.

Banking 71
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$550 Billion Energy Junk Bond Bubble Busts; "Whac-A-Mole" Distortions in Multiple Markets

MishTalk

Since early 2010, energy producers have raised $550 billion of new bonds and loans as the Federal Reserve held borrowing costs near zero, according to Deutsche Bank AG. percent in June, according to Bank of America Merrill Lynch index data. CJES), postponed financings this month as sentiment soured. And this is a mania.”

Energy 78
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Asset Management – Valuation (Part 2 of 4)

Tom Spencer

There are a couple of reasons for this: Asset managers can see cash flow and earnings fluctuate wildly with markets. If there is a financial crisis, the stock market falls by half and the asset manager’s performance is in line with the stock market, they now make $500 million. Valuation of Asset Management Firms.