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    big banks

    Common sense and self-preservation tell you not to tangle with wounded animals; you're liable to get bitten... or worse.

    And when that animal happens to be, say, nearly all of the "Too Big to Fail" banks in the country, everyone can get hurt.

    That's exactly what's happening now. As you'll see, it resembles nothing less than a hungry snake eating its own tail, or a financial catch-22.

    They benefit from central bank support, but the central banks are dangerously raising their risk profile. They thrive on capitalism, but competition is killing them. They need smart regulation, but they're getting tough regulation instead.

    These are all serious problems that, by accident and design, are setting the global economy up for a system shock that will rival the financial crisis of 2008.

    Make no mistake, these banks need to be curbed for our good, but that needs to happen in an orderly, systemic fashion.

    These banks need breaking up, but it can't happen like this...

Article Index

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

big bank

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...

The Big Banks Are Threatening the Global Economy Again – Here's What You Need to Know

bank stress test

Global powers increasingly rely on big banks to facilitate government borrowing, fund loans, and underwrite economic growth, among other things.

And once again, they're headed for trouble - here's how they could drag the entire global economy down with them...

How to Protect Yourself from Deutsche Bank's "Gold and Silver Fix"

stock market crash

Deutsche Bank just admitted that it and other Big Banks conspired to rig gold and silver prices.

Investing when you can't trust the markets is tricky, so here's how to protect yourself when investing in gold and silver now...

Here's the Size of the Scam the Fed and U.S. Companies Are Pulling on Us

When the Fed hiked interest rates this week, the media missed out on the interest rates that really matter. Those have been moving up for a while now, and it's a disaster...

Stocks have been on a tear. After looking weak in February, they've soared close to 13% in a matter of weeks.

So why does it all feel like a magic trick? Why isn't the market rally giving investors any solid feelings? Why is everyone so nervous?

I'll tell you what's going on, who's responsible, and what you need to do now. Let's get started...

If You Want an Accurate Financial Forecast, Ask a Waiter

financial forecast

Many investors really start to study the markets this time of year in an effort to divine what's next for global markets and, by implication, their portfolios.

But for an accurate financial forecast, I turn to the world's top steak houses, which are known haunts for global traders anxious to blow off some steam and have a fabulous meal.

Today I'm going to talk about what's not"on the menu" - pardon the pun - and why. Then, I'll highlight an investment poised for profits as a result.

Here's what waiters can tell you that economics can't.

You'll Love This Politician's Quip on Wall Street

wall street criminal

During last night's Democratic debate, Vermont Sen. Bernie Sanders said a few things about Wall Street that made us stop and think.

Whoa, we might actually agree with a politician about something.

Here's what Sanders had to say about Big Banks and their cronies on Capitol Hill...

The Most Outrageous Handout Given to Big Banks Is Finally Changing

big banks

Last week, our nation's biggest banks lost a portion of an outrageous handout they've been garnishing from American taxpayers for the last 102 years.

This free handout is a ploy seldom covered by mainstream media - which, as we all know, is now generally loath to upset the powers that be.

It happened Tuesday, when Congress released a highway bill that uses surplus funds from the U.S. Federal Reserve to help pay for the legislation's $325 billion price tag.

These surplus funds will drain the source of this big-bank payout, known as Federal Reserve dividends...

Bitcoin Blockchain Potential Draws These 9 Big Banks into Alliance

bitcoin

The revolutionary potential of the Bitcoin blockchain - the technology underlying the digital currency - is what led nine of the world's big banks to join together to study ways to apply it to the global financial markets.

The new partnership will focus on exploring ways the big banks can use the Bitcoin blockchain to save time and money across a wide range of financial activities.

Here's what this partnership is planning - and what it means for Bitcoin...

JP Morgan, Goldman Sachs, and Morgan Stanley Form New Data Company

pre-market movers

Banking behemoths JP Morgan, Goldman Sachs, and Morgan Stanley are teaming up to create a company that will give them shared access to certain market data, which will help them cut data management costs.

The trio are each investing "seven figures" in the new initiative.

Here's why these highly competitive big banks are all teaming up...

Pass on JPMorgan (NYSE: JPM) Stock and Buy This Big Bank Play Instead

NYSE: JPM

JPMorgan Chase & Co. (NYSE: JPM) stock seemingly continues to establish all-time highs with each new trading session.

It's one of the largest investment banks in the world, sitting on $2.6 trillion in assets. It navigated the financial crisis better than any other firm on Wall Street.

But here's why if you buy it now, you may miss this more profitable opportunity in banking...

The JPMorgan (NYSE: JPM) Stock Price Faces This $33.8 Trillion Problem

JPM stock price

The JPMorgan Chase & Co. (NYSE: JPM) stock price seems to be breaking out.

Last week, the JPM stock price hit an all-time closing high of $67.01. It's up about 380% since the end of the Great Recession.

But "so what," says one expert. The JPM stock price has some threats coming its way in the near future...

America Has Become a "Banana Republic Run by Wall Street Criminals"

wall street criminals

Wall Street criminals just won't stop misbehaving.
The latest crime was exposed Wednesday. Five of the biggest names in global finance agreed to pay billions to settle lawsuits alleging they illegally gamed the $5 trillion-a-day foreign exchange market.
"America has become a banana republic run by Wall Street criminals," Money Morning Capital Wave Strategist Shah Gilani said on Wednesday.

Of course, history dictates the fines will have no actual effect on business practices. Not including this week’s, just look at the litany of settlements too-big-to-fail banks have shelled out in the last five years alone…

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

Banks Owe

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.

Fines Are a Cost of Doing Business for Big Banks

Bank

The cost of criminality is built into the balance sheets of global financial institutions and accordingly priced into their stocks. Five of the world's biggest banks -JPMorgan Chase, Citicorp, Barclays, UBS, and Royal Bank of Scotland - pleaded guilty to currency rigging in the $5 trillion a day foreign exchange market, and settled for fines totaling roughly $5.7 billion (representing the earnings of about a day or two for each bank).

They also received...

Goldman Sachs Stock Price Can't Escape Volcker Rule Time Bomb

goldman sachs stock price

The Goldman Sachs stock price fell yesterday (Thursday) on what was a wildly successful earnings season for the investment banking giant.

Goldman Sachs Group Inc. (NYSE: GS) earnings crushed estimates across the board. But traders on the day were correct in their assessments. GS stock is not one to pile into right now.

In fact, big bank stocks are not the best place to put your money. And Goldman Sachs has its own challenges ahead...