Analyst say that he cheap money may cause harm for future money raises….
Comments »Ritholtz: Dividends are All the Rage – The Clamour for Equity Yield
See the illuminating chart here.
Comments »Consumer Credit Rises More Than Expected in December
El-Erian Remains Hopeful of the Future, But Would have You Play it Safe to be Sure
Bernanke Insists He Will Shield America From European Debacle
The Quiet Before the Storm
[youtube://http://www.youtube.com/watch?v=d8hwp_P3gKs 450 300]
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Credit Suisse Has Nine Anomalies For Your Protfolio to Take Advantage Of
AIG Holds Another Troubled Asset Bond Sale
China Embarks on First Time Home Buying Support
Speculators are hurting the market place; so the Chinese government will help out first time home buyers with construction loans, ( like they need more construction,) and making sure lending is available.
Comments »Australia Leaves Rates Unchanged; Aussie Dollar Rises to Six Month High
Did You Expect Greece to Reach a Deal?
January Finds a Huge Uptick in ETF Investments
GLOBAL CDS SPREADS PLUNGE AGAIN
Moody’s: 5 risk scenarios for Asia Pacific Banks
Comments »Global Credit Research – 06 Feb 2012 Hong Kong, February 06, 2012 — Moody’s Investors Service says that while it expects a benign credit environment for Asia Pacific banks in 2012, there are still potential hazards that could develop into material adverse shocks for particular systems.
“These are not our central scenario, but what we consider as “tail risks”, or low-probability, but potentially high-impact events that warrant close monitoring over the coming 12 months,” says Stephen Long, a Moody’s Managing Director for the Financial Institutions Group in Asia Pacific.
The report lists and discusses five downside risk scenarios that Moody’s views as increasingly disturbing.
These include: (1) contagion risk from Europe’s sovereign crisis; (2) the possibility of a hard landing for the Chinese economy; (3) the bursting of real estate bubbles in Asia; (4) a downturn in commodity prices; and (5) a downturn in the Australian property market.
Regarding contagion risk, Moody’s believes that the banking systems in Australia, New Zealand, Korea and Vietnam are the most vulnerable to financial and economic shocks from a euro area crisis.
While another downside scenario is the risk of a China hard-landing, a somewhat comforting conclusion from Moody’s stress test is that the profitability, loss reserves, and capital positions of Chinese banks still provide a strong cushion.
The report also says that a substantial downturn in real estate prices in Asia would only have a limited impact on the region’s banking systems in general.
In addition, Moody’s expects the credit impact of a commodity price downturn to vary across the region, with potential distress concentrated in net commodity exporters, but also a risk among midstream processors.
Finally, a downturn in the Australian property market is another single-economy tail risk identified in the analysis. However, Moody’s notes that Australian banks are protected against the direct impact of falling house prices by their low loan-to-value ratios, and the use of mortgage insurance.
The report is titled “Asia Pacific Banks: Five Risk Scenarios for 2012.” It can be accessed on www.moodys.com.
India Agrees to Pay Iran in Gold for Oil
Emerging Emerging Markets in Focus
Jeremy Grantham: It’s Time to Tax the Rich
“Jeremy Grantham, chief investment strategist at GMO, says it’s time to tax the rich.
“For the time being, in the U.S. our corporate and governmental system backed surprisingly by the Supreme Court has become a plutocracy, designed to prolong, protect and intensify the wealth and influence of those who already have the wealth and influence,” Grantham writes in the Financial Times.
To mitigate this pressure on labor, developed societies could adjust the tax structure, Grantham suggests…”
Comments »FLASH: CRACK SPREADS SHOOT HIGHER
+4.5% to $28.5
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