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By Monty Guild & Tony Danaher, on September 29th, 2011
The Coming Euro Bail
Financial volatility and political incoherence have been the order of the day on the continent. However, with the German vote today there are distinct signs that a political consensus has taken shape in Europe. Now the job is to create a TARP like facility to stabilize the banking system and the sovereign debt crisis. As we see things, it looks likely that trillions of Euros will be injected into recapitalization of weak European banks. Funds would also be earmarked for buying the government debt of the three weakest countries ? Greece, and perhaps Ireland and . . .
Continue Reading: The Coming Euro Bail
By Monty Guild & Tony Danaher, on September 22nd, 2011
Europe’s Banking Swoon Gets Temporary Band-Aid
Last week, five important central banks offered one-time funding lines to large commercial banks. Why? Access to capital from money markets was drying up and liquid first aid was needed. The commercial banks were having a hard time borrowing dollars needed to repay loans in U.S. currency made by U.S. money market funds that decided not to renew the loans.
Hitherto, U.S. money market funds had been huge lenders to large European banks. Now, bad news about Europe’s sovereign debt situation is scaring U.S. money market institutions away, even though the Europeans have . . .
Continue Reading: Germany and the Euro Bailout Fund
By Monty Guild & Tony Danaher, on September 15th, 2011
Crises Ahead As U.S. Banks Fight Against Needed Overhaul
Those of you who have followed our newsletter for some years know that we predicted the derivative-based banking crisis well before it happened. We saw it developing and repeatedly predicted a looming disaster. When the crash occurred, we explained the most egregious causes, one of which was the un-bank like speculative behavior of banking institutions. Leading up to the crash, they were acting more like wild speculators than sober lenders and traders of government bonds.
Banks are supposed to be conservative institutions that do prudent analysis of credit . . .
Continue Reading: Gold—Playing with The House’s Money is a Good Thing
By Monty Guild & Tony Danaher, on September 8th, 2011
Under The Radar Screen:
Big Developments Getting Little Attention
Two developments of great significance — in China and Russia — have attracted little attention from the Western financial media that is totally obsessed with calamitous fiscal crises at home. We think you should know about them.
The Pan Asia Gold Exchange (PAGE)
The Pan Asia Gold Exchange (PAGE), backed by the Chinese Government, opens for business in the next few months and is expected to be fully operational by the end of 2011. This development represents an unprecedented challenge to the entrenched institutions that effect the . . .
Continue Reading: Investment Trends To Keep In Mind
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