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This weekend the EU will stress test 130 banks.  The test should reveal zombie and other weak banks,  Expect 6 to 8, at least, to fail.  Besides the usual suspects in Greece, Italy and Spain, at least one in Austria may fail.  (Economic historians trace the start of the worldwide bank failures of  the 1930s to that of one in Austria)

 

Stock markets in Europe may go on a roller coaster ride, spreading to the US.  OTOH,  investors will flee to the US bidding up the cost of our stocks and bonds. 

 

Buckle up, its going to be a bumpy ride.

TRUTH -- THE NEW HATE SPEECH!

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They're also proposing to buy bank debt.  If, its the zombie bank debt, expect more problems.  Japan kept theirs alive, even though there was no chance of recovery -- resulting in a couple of lost decades.

 

The EU is dunning the UK for about $3.5 billion because their economy is recovering.  More fuel to the UKIP party to leave the EU.

Here's some closer to home economic news, an example that people have less cognitive ability than goldfish:

 

Federal Housing Finance Agency Unveils Plan to Loosen Rules on Mortgages

Originally Posted by Stanky:

Here's some closer to home economic news, an example that people have less cognitive ability than goldfish:

 

Federal Housing Finance Agency Unveils Plan to Loosen Rules on Mortgages

Well, since the Congressional Republicans refuse to fund or impliment the Dodd–Frank Wall Street Reform and Consumer Protection Act, the banks are free to fail again, and I guess , if they do, we'll bail them out again.
WHY DO WE NEVER LEARN ?????????  If we fail to head the lessons of history, we will be forced to relive the events. History, like an old school marm, will force us to do it over and over until we learn and do something to prevent it.
BTW, you can thank Phil Graham who for writing and promoting the bill that ended controls on banks, and Clinton for signing the damm thing.

 

Originally Posted by seeweed:
Originally Posted by Stanky:

Here's some closer to home economic news, an example that people have less cognitive ability than goldfish:

 

Federal Housing Finance Agency Unveils Plan to Loosen Rules on Mortgages

Well, since the Congressional Republicans refuse to fund or impliment the Dodd–Frank Wall Street Reform and Consumer Protection Act, the banks are free to fail again, and I guess , if they do, we'll bail them out again.
WHY DO WE NEVER LEARN ?????????  If we fail to head the lessons of history, we will be forced to relive the events. History, like an old school marm, will force us to do it over and over until we learn and do something to prevent it.
BTW, you can thank Phil Graham who for writing and promoting the bill that ended controls on banks, and Clinton for signing the damm thing.

 

_____________________________________________________

Link to your claim, please.

Originally Posted by seeweed:
Originally Posted by Stanky:

Here's some closer to home economic news, an example that people have less cognitive ability than goldfish:

 

Federal Housing Finance Agency Unveils Plan to Loosen Rules on Mortgages

Well, since the Congressional Republicans refuse to fund or impliment the Dodd–Frank Wall Street Reform and Consumer Protection Act, the banks are free to fail again, and I guess , if they do, we'll bail them out again.
WHY DO WE NEVER LEARN ?????????  If we fail to head the lessons of history, we will be forced to relive the events. History, like an old school marm, will force us to do it over and over until we learn and do something to prevent it.
BTW, you can thank Phil Graham who for writing and promoting the bill that ended controls on banks, and Clinton for signing the damm thing.

 

_____________________________________________________________

 

'weed, Melvin L. Watt works for the goobermint. Like 20 years ago, the fed's are again inserting themselves into the housing market, totally forgetting the housing bust and recession that it caused.

 

Melvin Luther "Mel" Watt (born August 26, 1945) is an American politician who has been Director of the Federal Housing Finance Agency since 2014. Previously he served as the United States Representative for North Carolina's 12th congressional district from 1993 to 2014. He is a member of the Democratic Party. An attorney from Charlotte, North Carolina, Watt also served one term as a state Senator and served as campaign manager for Charlotte Mayor Harvey Gantt.

 

On May 1, 2013, President Barack Obama nominated Watt as the next head of the Federal Housing Finance Agency, which among other agencies, administers or has oversight for the FHA, Fannie Mae, and Freddie Mac.[1][2] The U.S. Senate confirmed Watt on December 10, 2013.[3]

http://en.wikipedia.org/wiki/Mel_Watt

 

From evil Fox business:

 

The Road to Hell Is Paved by ... Lax Lending Rules

http://www.foxbusiness.com/eco...ntcmp=fbcolumnsblogs

Originally Posted by direstraits:

They're also proposing to buy bank debt.  If, its the zombie bank debt, expect more problems.  Japan kept theirs alive, even though there was no chance of recovery -- resulting in a couple of lost decades.

 

The EU is dunning the UK for about $3.5 billion because their economy is recovering.  More fuel to the UKIP party to leave the EU.

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Looks like Japan is also doubling down on dumb. I suspect U.S. markets will overheat from a few months to a couple of years. Expect an even bigger pop when reality returns.

 

TOKYO (AP) — Japan's central bank surprised the financial world and pleased investors Friday by intensifying its purchases of government bonds and other assets to try to revive a chronically anemic economy.

The Bank of Japan's move to pump trillions more yen into the financial system is intended to stimulate spending in the world's third-largest economy. It's an acknowledgement that Prime Minister Shinzo Abe's government has so far failed in its broad efforts to revive growth, especially after a sales tax hike took effect in April. The latest data show consumer spending falling, unemployment rising and excessively low inflation dipping further.

 

By injecting more money into the economy, the government hopes to raise expectations of higher inflation and thereby encourage people to spend and fuel growth.

 

Coinciding with the central bank's move, Japan's $1.1 trillion public pension fund acted Friday to move money out of low-yielding bonds and into higher-yielding but riskier stocks to try to improve its investment returns and meet its obligations to a swelling number of retirees. Abe said the move was needed to ensure that the fund can meet its future obligations. Japan is rapidly aging, and its population is shrinking as birth rates decline.

 

Across the world, investors responded by pouring money into stocks in anticipation that the Bank of Japan's action would mean lower bond yields, higher stock prices and a cheaper yen, which would make Japan's goods more affordable overseas.

http://news.yahoo.com/japan-in...-sept-015716055.html

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