Money Morning's Keith Fitz-Gerald nails China's GDP growth, gives his quick read on big bank's reported earnings, and cautions against taking a short-term view during any earnings season.
Two out of 31 big banks failed the Fed's bank stress tests. One was Deutsche Bank AG (USA) (NYSE: DB), and the other was Santander Holdings USA Inc (NYSE: SOV-C).
But Santander's biggest U.S. unit manage to sell a boatload of subprime auto loans - worth $712 million.
Welcome to another performance of "Bank Stress Test" Kabuki Theater - where the whole show, which first started in April 2009, is just a public performance.
In 2014, Bank of America (NYSE: BAC) passed its first round of stress tests with flying colors! For such good capital management, BOA was permitted to reward its shareholders.
Central bankers disguise themselves as friendly shepherds. But really it's more of a "wolf guarding the henhouse" situation...
You see, we've been experiencing deflation, not inflation...on a global scale. Why aren't prices rising? Why aren't wages rising? Why is global demand so lackluster?
The free market for banking services in the United States isn't a free market at all.
The truth is the biggest commercial banks in America operate with virtual impunity as a government-subsidized, government-protected oligopoly.
So, why don't we drop the pretense that government-owned banks don't belong in a free market economy and create a network of honest state-owned banks to compete with so-called private banks?
The JPMorgan Chase & Co. (NYSE: JPM) stock price faltered more than 4% on this morning on an earnings miss.
JPMorgan was hit hard by legal fees. The bank, along with several other big banks across the globe, had to cough up just over $1 billion. Most of that stems from a November settlement tied to shady activity in the foreign exchange market. But legal fees are nothing new.
JP Morgan (NYSE: JPM) is about to become Goldman Sachs' newest toy. Except its version of "playing" is "smashing it into pieces."
That's right, Goldman Sachs has joined a bandwagon of analysts calling for JP Morgan Chase to break up. And since Goldman Sachs is simply the best at what it does - good and evil - their mission shouldn't be too hard.
Thanks to U.S. Federal Reserve policies that are holding market rates down near zero, you're barely getting one one-hundredth of a percentage point on your cash deposits.
It's bad enough that you're getting practically no yield on your savings. But now the big banks - those greedy fellows that we taxpayers bailed out from a crisis they actually caused - are about to start charging you to deposit money with them. All thanks to policies enforced by the central bankers.
I've talked about the dangers posed by the scary move the U.S. Treasury bond market made back on Oct. 15.
And my cautionary tale was totally justified.
Indeed, in the December 3 Wall Street Journal, the lead article in the Global Finance portion of the Money & Investing section was "Watchdog Warns of Risk in Markets."
Apparently, the Office of Financial Research (OFR), the watchdog team created out of Dodd-Frank legislation under the "watchful" eye of the U.S. Treasury Department, observed the same move that I did - and found it just as rattling.
According to The Journal, the OFR warned that "the system is vulnerable to repeats of what occurred in October when tumult in the trading of U.S. Treasury securities spread broadly to futures, swaps and options markets."
The watchdog group's just-released third annual report soberly noted that "although the dislocation that peaked in mid-October was fleeting, we believe there is a risk of a repeat occurrence," and further warned that resulting volatility "raises a host of financial stability questions."
The Fed was the center of debate during congressional questioning on Nov. 21.
Sen. Elizabeth Warren compared the Fed's job to that of "a cop on the beat."
"Business culture in the banking industry is favoring, or at least tolerating, fraudulent or unethical behaviors."
That's what Ernst Fehr told reporters in a telephone interview last week.
Fehr is an economist at the University of Zürich in Switzerland who co-led a study about business behavior.
Fehr's study proves what we've all long known - but it wasn't the only piece of news last week that demonstrates the crookedness of bankers.
Today I'll show you how Wall Street's manipulations are affecting the prices we pay for everything from the cars we drive to our pots and pans.
With the Dow Jones Industrials and the S&P 500 indices repeatedly making new highs, chances are better than good that markets will rally through year-end.
There are lots of reasons why stocks are headed higher, but one in particular is telling.
It's really a simple one, yet too many people have overlooked it; indeed, most wouldn't even give it enough thought.
And that would be a big mistake.
"Price fixing" or "fix" are Wall Street terms used to describe how benchmarks are priced on hundreds of instruments, from the Libor and other foreign currency exchange rates to gold, silver, and swaps.
While the methodologies used to determine fixes are different, in all cases where benchmarks are fixed by panels, the input of the bankers is what results in the output.
"The Secret Recordings of Carmen Segarra" was broadcast on NPR's "This American Life" on Sept. 26. Carmen Segarra, a former Fed examiner in the bowels of Goldman Sachs Group Inc. (NYSE: GS), secretly recorded some of the goings-on there.
And what was revealed in those tapes speaks a lot to who's really running the show there - the Fed or the big banks.
Last week the U.S. Government Accountability Office (GAO) released a report titled "Large Bank Holding Companies: Expectations of Government Support."
And wouldn't you know it - all the "Too Big to Fail" banks broke out their crack pipes.
The report didn’t surprise anybody. After all, we all already know that big banks are government bootlickers, when they need to be.