Category

Banking

Wall Street

Why the Latest Big Bank Scandal Is Worse Than Usual

Big banks are routinely penalized for shady activity.

But Wells Fargo's latest scheme is indicative of systemic, incentivized criminal behavior that'll take more than a $190 million fine to fix...

Market Crash

The Worse Banks Get, the More This Easy Trade Pays You

The global economy is about to be dealt one "double whammy" of a knockout blow.

It's because of two different emerging trends that are fast approaching collision: financial repression and the uncontrolled expansion of the financial sector.

Financial repression has vastly contributed to the pain the middle class is feeling now. Historically low, even negative, interest rates have eaten into returns and helped decimate pension funds and punish everyone from savers to bondholders.

At the same time, massive banks have been allowed to grow in size and power, totally unchecked. And they've used this growth period to inject huge, totally unsustainable amounts of leverage into the system via trillions of dollars in derivatives contracts and bad loans.

Either of these would be bad enough, but I want to show you how these trends are converging to unleash a firestorm of capital destruction on the unwitting. That's something we're just beginning to see in Europe right now, but it sure won't stop "over there."

The way to avoid it? Don't be unwitting. Take a look at this easy-to-trade profit play I'm recommending right now.

The worse banks get, the more it pays...

Wall Street

The Next Big Bank "System Shock" Is Inevitable – the Proof Is in the Earnings

Big banks' size and structural weaknesses are enough to push markets to the brink, but that's not all. How they're circumnavigating barriers to their profitability could ignite the next financial crisis.

And their Q1 2016 earnings are just more evidence that the next catastrophe is inevitable. Take a look...

earnings

The Penny Arcade Plot to Steal Your Cash

TD Bank's penny arcades have been miscalculating your piggy bank loot.

Not by a little bit, but by a lot.

Here's how the massive error was uncovered...

Market crash

Grab This "Peak Dollar" Profit Play Now

The U.S. dollar has become the world's largest fiat currency experiment ever. Not only is it the world's reserve currency, but numerous other nations have either adopted it as their own, used it to peg their own currency, or widely accept it to settle transactions.

Interest rates, precious metals, agricultural products, and energy are all priced in dollars.

Famously, the U.S. government pledged its support to the Saudi royal family – so long as the House of Saud accepted oil payments in "petrodollars" only.

But I'm seeing evidence that throws the dollar's long-term health and survival into doubt. I don't think it's going to disappear tomorrow, of course, but its dominance is likely on the wane.

That's bad news for investors who aren't ready to move with the big changes, but it could be one of the biggest opportunities of this century...

The Fed

What Today's Federal Reserve Meeting Means for Investors

At the U.S. Federal Reserve meeting today (Wednesday), Fed Chairwoman Janet Yellen said she expects the pace of rate hikes in 2016 to be "gradual," although that could change with economic conditions.

Many economists predict at least two more 0.25% interest rate hikes this year. That would bring the Fed's target interest rate up from 0.50% to 1%. As of Wednesday's meeting, the Fed left interest rates unchanged at 0.50%.

But by June, the CME Group expects there's a 51% chance of a rate hike...

The Fed

How a Federal Reserve Interest Rate Hike Hands Over Billions to Big Banks

Big banks around the world are secretly rooting for another U.S. Federal Reserve interest rate hike this week.

That's because every Federal Reserve interest rate hike causes an immediate spike in their income. Last year the U.S. Federal Reserve paid out $6.9 billion to the Big Banks, including more than $100 million to Goldman Sachs Group Inc. (NYSE: GS) and more than $900 million to JPMorgan Chase & Co. (NYSE: JPM).

Here's how this insanity started - and why it's bound to get worse...

Wall Street

I Warned You About "P2P Lending"… and I Was Right

Investors are better off borrowing from a P2P lending site than investing in any of them.

If you want to get an online loan, go for it – but don't waste your money betting on any of the sites being a home-run investment.

For now, you should keep your capital away from marketplace lenders. Here's why...

Bitcoin

Why the Gemini Bitcoin Exchange Has Institutional Investors "Really Excited"

The Gemini Bitcoin exchange, one of several Bitcoin-related projects that the Winklevoss twins have in the pipeline, has obtained two key approvals from New York regulators.

Such regulatory approval is needed to build investor confidence in the Bitcoin exchange. But Gemini also has features tailored to institutional investors.

Here’s what will make the Winklevoss Bitcoin exchange so attractive…

Big Banks

How Much the Banks Were Fined This Week – BCS, C, JPM, RBS, UBS, BAC

On Wednesday, five of the world's biggest banks pled guilty to manipulating foreign currency rates for their own benefits. They will now pay a combined $5.6 billion in penalties.

With this week's settlements, big banks have now paid more than $60 billion in fines over the past two years.

This chart shows how much the banks were fined this week.