Friday, October 07, 2016

What, Me Worry About Financial Contagion
Of The Entire World's Financial System?
"Before the ensuing financial crisis the Federal Reserve had kept interest rates low as to help ward off the lingering effects remaining in the economy from the dot-com crash just a few years prior.
Many educated interest rate & monetary policy adept people & pundits (James Grant, Bill Gross, et al) sounded alarms that the Federal Reserve was just enabling another asset bubble.
e.g., The dot-com bubble being the first, then the subsequent housing bubble .. Not to make anyone nervous, but one of the largest banks in the world with contagion risk via derivatives (think subprime products for banks) in the 10’s of TRILLIONS of $dollars looks to be entering a phase which many have dubbed 'a death spiral.' e.g. Deutsche Bank .. Yet, just to add to the already frightening similarities of the last crisis, now it appears Commerzbank AG is raising alarm-bells in unison. The reason for these distresses? Current central bank policies and financial repression. Imagine that .. Make no mistake: On the global scale Deutsche Bank and its portfolio of derivative exposures alone has the ability to cause financial contagion across the global monetary system in ways similar to the initial days of the financial crisis. i.e., Who has exposure to what, along with the resulting freezing up of banks dealing with other banks as the fears feast upon themselves. But not to worry, after all, we’re told over, and over again when it comes to things like this –
'They’ve got this all under control.'
.. And if that doesn’t make you feel better – take a line of resilience from that real 'rock star' of calm and composure. Alfred E. Neuman .. 'What, me worry?'" 
- Mark St Cyr
LINK HERE to the essay

1 comment:

Anonymous said...

Panel Discussion on Hillary Clinton
Panelists talked about Hillary Clinton and the controversy over her e-mails. Panelists included Peter Schweizer, author of Clinton Cash; Jerome Corsi, author of Partners in Crime; and Tom Fitton, author of Clean House.
Airing Details

Oct 08, 2016 | 6:55pm EDT | C-SPAN 2
Oct 09, 2016 | 10:30am EDT | C-SPAN 2
Oct 10, 2016 | 1:30am EDT | C-SPAN 2