Topic: European Banks Crash For 4th Straight Week - page 4. (Read 2655 times)
I guess when interest rates are turning negative and bank stocks are crashing that is probably decent clues that the system is starting to get a bit wobbly.
First of all, all fiat currency is issued at an effective interest rate of negative infinity:
http://frass.woodcoin.org/negative-interest-rates/
Second of all, "oh no these banks are in trouble" is hardly going to bat an eyelash today. Many of these institutions have ways of issuing currency. The only thing they are worried about (and this not very worried) is that there might be one or two thinking people who would refuse to accept their paper as valuable. But this is Europe after all. Nobody thinks. The Euro is money.
http://frass.woodcoin.org/negative-interest-rates/
Second of all, "oh no these banks are in trouble" is hardly going to bat an eyelash today. Many of these institutions have ways of issuing currency. The only thing they are worried about (and this not very worried) is that there might be one or two thinking people who would refuse to accept their paper as valuable. But this is Europe after all. Nobody thinks. The Euro is money.
During a leisurely stroll around Germany, one may encounter many strange sights but nothing would stranger than the following ad (courtesy of Peter Barkow) which promises negative 1% interest rates for consumer loans up to 24 months.
Here is the quick and dirty: take out a loan and pay 1% less.
For the fine print we go to Santander Consumer Bank AG, which has this to which has this to say about this self-amortizing (if only in the beginning) loan....
http://www.zerohedge.com/news/2016-04-09/meanwhile-germany-unexpected-ad-appears
Here is the quick and dirty: take out a loan and pay 1% less.
For the fine print we go to Santander Consumer Bank AG, which has this to which has this to say about this self-amortizing (if only in the beginning) loan....
http://www.zerohedge.com/news/2016-04-09/meanwhile-germany-unexpected-ad-appears
EU banks are crashing in silence untill some time whan it will explode
Not only German but itaian,spanish,french very much,dutch
thay are all related,but if will brexit will be euroexit also
Euro currency has to fail EU needs reforms all will crash
Not only German but itaian,spanish,french very much,dutch
thay are all related,but if will brexit will be euroexit also
Euro currency has to fail EU needs reforms all will crash
Europe got a little crisis going on. The problem is Brexit. If it proceeds. EU banks need to sell their Uk stocks/holding by law.
Which makes the whole european market unstable to say the least.
Which makes the whole european market unstable to say the least.
It´s a fantasyland. I think that by now about 40% of government bonds within the EU have negative yield. The European central bank has bid up the prices of 10 yr. Italian bonds so much that their yield is lower than those of Singapore!
Italy hasn’t had a balanced budget since the nineties. Debt-to-GDP - 132%.
Singapore, does not have any net debt (is balanced within the budget). The country systematically produces a surplus of budget revenue and the GDP growth is at 6.5%.
That´s central intervention for you. How long that will work before it loses control and the real market takes charge is anybody´s guess. Until that happens the already way over indebted overspenders can borrow even more.
The more currency there is available, the less their debt is valued, and the sooner they can pay it off, right? /s
Bond price and yield move in opposite directions. The higher the price the lower the yield and vice versa. Which is why those yields are very close to zero or even negative. It´s central banks buying bonds. In a so called capitalistic system you have in effect central control of interest rates. If hypothetically, this control were totally relinquished next week everybody would rush to sell this way overbought bond mess, interest rates would skyrocket as a result and the whole financial system would implode.
Europe got a little crisis going on. The problem is Brexit. If it proceeds. EU banks need to sell their Uk stocks/holding by law.
Which makes the whole european market unstable to say the least.
Which makes the whole european market unstable to say the least.
It´s a fantasyland. I think that by now about 40% of government bonds within the EU have negative yield. The European central bank has bid up the prices of 10 yr. Italian bonds so much that their yield is lower than those of Singapore!
Italy hasn’t had a balanced budget since the nineties. Debt-to-GDP - 132%.
Singapore, does not have any net debt (is balanced within the budget). The country systematically produces a surplus of budget revenue and the GDP growth is at 6.5%.
That´s central intervention for you. How long that will work before it loses control and the real market takes charge is anybody´s guess. Until that happens the already way over indebted overspenders can borrow even more.
The more currency there is available, the less their debt is valued, and the sooner they can pay it off, right? /s
Europe got a little crisis going on. The problem is Brexit. If it proceeds. EU banks need to sell their Uk stocks/holding by law.
Which makes the whole european market unstable to say the least.
Which makes the whole european market unstable to say the least.
It´s a fantasyland. I think that by now about 40% of government bonds within the EU have negative yield. The European central bank has bid up the prices of 10 yr. Italian bonds so much that their yield is lower than those of Singapore!
Italy hasn’t had a balanced budget since the nineties. Debt-to-GDP - 132%.
Singapore, does not have any net debt (is balanced within the budget). The country systematically produces a surplus of budget revenue and the GDP growth is at 6.5%.
That´s central intervention for you. How long that will work before it loses control and the real market takes charge is anybody´s guess. Until that happens the already way over indebted overspenders can borrow even more.
Europe got a little crisis going on. The problem is Brexit. If it proceeds. EU banks need to sell their Uk stocks/holding by law.
Which makes the whole european market unstable to say the least.
Which makes the whole european market unstable to say the least.
It's not only German banks (DB and its 10x EU's GDP derivatives exposure) http://independenttrader.org/deutsche-bank-on-the-brink-of-bankruptcy.html but also Italian banks (Banco Popolare and Banco Popolare Di Milano) are going down. Draghi may be busy printing money to bail out 2.0 but helicopter money can prevent riots - maybe. http://independenttrader.org/the-most-important-events-of-march-2016.html#comment-93
Even with today's 3% surge - the most in a month - on the heels of Unicredit's CEO proclaiming that EU banks are "intensely" looking for fundin solutions, European banking stocks have collapsed for a 4th straight week for the worst losses since 2012.
Following the brief exuberance after Draghi unleashed his latest bazooka - which it seems was all front-run - European banking stocks have collapsed almost 20% - the biggest loss since April 2012.
http://www.zerohedge.com/news/2016-04-08/european-banks-crash-4th-straight-week
Following the brief exuberance after Draghi unleashed his latest bazooka - which it seems was all front-run - European banking stocks have collapsed almost 20% - the biggest loss since April 2012.
http://www.zerohedge.com/news/2016-04-08/european-banks-crash-4th-straight-week
Quote
European banking stocks have collapsed for a 4th straight week for the worst losses since 2012
give us the source that this is really happen,and i can't believe that Europan banks can crash like this,since 4 years, is this one of many effect of bitcoin? tell me something 
Even with today's 3% surge - the most in a month - on the heels of Unicredit's CEO proclaiming that EU banks are "intensely" looking for fundin solutions, European banking stocks have collapsed for a 4th straight week for the worst losses since 2012.
Following the brief exuberance after Draghi unleashed his latest bazooka - which it seems was all front-run - European banking stocks have collapsed almost 20% - the biggest loss since April 2012.
http://www.zerohedge.com/news/2016-04-08/european-banks-crash-4th-straight-week
Following the brief exuberance after Draghi unleashed his latest bazooka - which it seems was all front-run - European banking stocks have collapsed almost 20% - the biggest loss since April 2012.
http://www.zerohedge.com/news/2016-04-08/european-banks-crash-4th-straight-week
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