The Big Bailout of the Eurozone (Another crisis coming? - Seriously)

[muppet]

http://www.rte.ie/news/2016/0601/792573-anglo-trial/

Former Anglo Irish Bank executives found guilty of conspiracy to defraud; deliberations to resume on former IL&P verdicts

Bernie Madoff's empire collapsed on the 10 Dec 2008, after the beginning of Anglo's demise. Granted Bernie admitted his guilt, but still Bernie was sentenced in June 2009 for 150 years in prison. Why has it taken us 8 years to get to just a verdict? I applaud the fact that we got here finally, and this should really only be the start of it, but why so bloody long? Are we trying to wait until they are all dead?

[seafoid]

http://www.ft.com/intl/cms/s/0/244d076e-27d2-11e6-8b18-91555f2f4fde.html
Transformational cost savings are a "pipe dream" for investment banks and only a handful will "eventually" be able to meet their cost of capital, the Boston Consulting Group has warned.
The caution came as BCG executives were speaking to a teleconference of 140 investors about the future of investment banks after publishing a report highlighting the challenges the sector faces as regulatory costs mount, trading volumes drop and interest rates remain problematically low.

These challenges have been underscored again this week with news that HSBC and Macquarie are both cutting jobs, following a path already well trodden by rivals including Nomura and Morgan Stanley.
In their briefing with investors last week, BCG's Philippe Morel and Will Rhode warned that only five or six investment banks would ever meet their cost of capital in an industry whose profitability has been dramatically hit by post-crisis regulation

https://www.youtube.com/watch?v=rAlTOfl9F2w

[Hound]

Why bond yields matter

A bond yielding 5% over 10 years has a value of 100 when the yield is 5%. Should the yield fall to 1.84%, which is the current US Treasury 10 year yield, the value of the bond jumps to 128.6. Assume ever more debt is created and US yields go to zero. The value of the bond is now 150. What is the point of investing in the real economy when the magic of debt generates such returns? Say even more debt is created and yields go to minus 2%. The bond is now worth 178.

With this level of knowledge, I'm amazed that you're not in the 1% yet.

Bonds aren't difficult to buy. If you find any that are going to jump in value by 28.6% as per above, please let us all know. Of course the ones that will jump in value 50% or 78%  would be better still!

[muppet]

http://www.ft.com/intl/cms/s/0/244d076e-27d2-11e6-8b18-91555f2f4fde.html
Transformational cost savings are a "pipe dream" for investment banks and only a handful will "eventually" be able to meet their cost of capital, the Boston Consulting Group has warned.
The caution came as BCG executives were speaking to a teleconference of 140 investors about the future of investment banks after publishing a report highlighting the challenges the sector faces as regulatory costs mount, trading volumes drop and interest rates remain problematically low.

These challenges have been underscored again this week with news that HSBC and Macquarie are both cutting jobs, following a path already well trodden by rivals including Nomura and Morgan Stanley.
In their briefing with investors last week, BCG's Philippe Morel and Will Rhode warned that only five or six investment banks would ever meet their cost of capital in an industry whose profitability has been dramatically hit by post-crisis regulation

https://www.youtube.com/watch?v=rAlTOfl9F2w

I have heard it said from people in the business: The only thing worse than too little regulation in the boom is too much regulation  after the crash.

The reality is one follows the other, as sure as night follows day. The other issue is that firms like GS are market makers and so operate ahead of regulation a lot of the time. It is hard to sympathise with Wall St. whinging about regulation.

[seafoid]

. http://www.ft.com/cms/s/0/37eb6964-2908-11e6-8ba3-cdd781d02d89.html

Negative-yielding government debt has risen above $10tn for the first time, enveloping an increasingly large part of the financial markets after being fuelled by central bank stimulus and a voracious investor appetite for sovereign paper.

The amount of sovereign debt trading with a sub-zero yield climbed 5 per cent in May from a month earlier to $10.4tn, buoyed by rising bond prices in Italy, Japan, Germany and France, according to rating agency Fitch. Yields fall as the price of the underlying bonds climbs.

[muppet]

. http://www.ft.com/cms/s/0/37eb6964-2908-11e6-8ba3-cdd781d02d89.html

Negative-yielding government debt has risen above $10tn for the first time, enveloping an increasingly large part of the financial markets after being fuelled by central bank stimulus and a voracious investor appetite for sovereign paper.

The amount of sovereign debt trading with a sub-zero yield climbed 5 per cent in May from a month earlier to $10.4tn, buoyed by rising bond prices in Italy, Japan, Germany and France, according to rating agency Fitch. Yields fall as the price of the underlying bonds climbs.

As far as I can see, yields are mainly used to price the 2nd-hand bond or Secondary market. But it also seems to be used as a yardstick for the health of economies, in the way CDSs are now used as a yardstick to measure the likelihood of a default.

How big and significant is the Secondary market though? And given that QE distorts interest rates in the main Bond Market, how reliable are any of these metrics these days?

[seafoid]

. http://www.ft.com/cms/s/0/37eb6964-2908-11e6-8ba3-cdd781d02d89.html

Negative-yielding government debt has risen above $10tn for the first time, enveloping an increasingly large part of the financial markets after being fuelled by central bank stimulus and a voracious investor appetite for sovereign paper.

The amount of sovereign debt trading with a sub-zero yield climbed 5 per cent in May from a month earlier to $10.4tn, buoyed by rising bond prices in Italy, Japan, Germany and France, according to rating agency Fitch. Yields fall as the price of the underlying bonds climbs.

As far as I can see, yields are mainly used to price the 2nd-hand bond or Secondary market. But it also seems to be used as a yardstick for the health of economies, in the way CDSs are now used as a yardstick to measure the likelihood of a default.

How big and significant is the Secondary market though? And given that QE distorts interest rates in the main Bond Market, how reliable are any of these metrics these days?

QE was supposed to generate growth but it just blew up asset bubbles. Bonds have never been more expensive. It's great for Ireland cos it reduces costs on the 200bn debt but the big downside risk is increased interest rates

[muppet]

I love this!

http://www.marketwatch.com/story/how-hedge-fund-geniuses-got-beaten-by-monkeys-again-2015-06-25?link=sfmw_tw

[seafoid]

http://www.irishtimes.com/business/financial-services/denis-casey-found-guilty-in-anglo-trial-1.2678282

[heganboy]

http://www.irishtimes.com/business/financial-services/denis-casey-found-guilty-in-anglo-trial-1.2678282

Pleased to see that the justice system in Ireland has done a better job than in the US or the UK.

The harm visited on the nation by these guys is akin to treason.

[Muck Savage]

http://www.irishtimes.com/business/financial-services/denis-casey-found-guilty-in-anglo-trial-1.2678282

Pleased to see that the justice system in Ireland has done a better job than in the US or the UK.

The harm visited on the nation by these guys is akin to treason.

They were found guilty but what or when is the sentence? Will they do time, I bet not.
sc**bag bankers!

[armaghniac]

The interest rate on the last Swiss bond, a 50 year one, has gone negative. So investors are willing to pay the Swiss government to get back less in 2064!

The world is coped.

[seafoid]

The interest rate on the last Swiss bond, a 50 year one, has gone negative. So investors are willing to pay the Swiss government to get back less in 2064!

The world is coped.

Ponzi

http://www.tradingeconomics.com/united-states/government-debt-to-gdp

Go to max and check out 1950 to 1965

[armaghniac]

Very strange economic stats
http://www.rte.ie/news/business/2016/0712/801870-cso-on-economy/

The economy grew by an enormous 26% last year, according to the latest figures from the Central Statistics Office.

The figures are the strongest performance by Ireland in recent decades and compare to an estimate of GDP growth of 7.8% for 2015.

However, much of the rise is as a result of aircraft purchases, corporate restructuring and companies re-locating assets to Ireland.

These changes have not resulted in a significant increase in employment.

The country's Gross Domestic Product expanded by 26.3% in 2015 compared to 2014, while Gross National Product was up 18.7%.

[armaghniac]

A few of bankers going to the big house. I'm not sure why it took so long to do this.

Three former bank executives have been given prison sentences ranging from two years to three and a half years at Dublin Circuit Criminal Court in Dublin for their part in a €7.2bn conspiracy.

Former Anglo Irish Bank executives John Bowe and Willie McAteer and the former chief executive of Irish Life and Permanent, Denis Casey, were found guilty last month of agreeing a scheme to mislead the public about the true health of Anglo.

Judge Martin Nolan sentenced Bowe to two years, McAteer to three and a half years and Casey to two years and nine months.