- Provisioning for less future losses, by reducing NPLs in the current quarter, thus generating profits out of manipulated air (particularly relevant for HSBC's results yesterday, which were the main factor in pushing the market 25 points higher)
- Increasingly more difficult for consumers to get loans. Not much of an issue - Obama will simply blame this on the previous regime.
- And the glaringly obvious, i.e., that all European banks sit on bloated amounts of largely overvalued sovereign debt. Should another sovereign risk flaring appear (and it is Zero Hedge's belief that this will occur promptly, as soon as the European vacation season is over), it will be time to dig up the old skeletons of financial insolvency once again, only this time with EUR LIBOR and Euribor about 100% higher than where they were in May.
More Here..
“The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest the Republic become bankrupt. People must again learn to work, instead of living on public assistance”
ReplyDeleteMarcus Tullius Cicero 55BC
as long as jobs are available I assume
Like I said
ReplyDeleteIf you do not study, learn and therefore understand history; you are dommed to repaet it - over and over and over again
By this time in the human endeavor that is life - there is truly nothing new under the sun and yet - we consistantly make the same glaring errors over nad over nad over again.
If I see one more post citing that the european cenral banks are behind all evil in the world; I think I'll be sick !
Get over it already ! They are
B
R
O
K
E
They finance NOTHING in 2010
NOTHING
And we are barking on their heels --- fast. Their soverign debt is overpriced by a factor pf 240% !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!