Davos: banks in worse shape than 2007, trillions on debt uncollectible

[avb3]

http://www.telegraph.co.uk/finance/financetopics/davos/12108569/World-faces-wave-of-epic-debt-defaults-fears-central-bank-veteran.html

The global financial system has become dangerously unstable and faces an avalanche of bankruptcies that will test social and political stability, a leading monetary theorist has warned.

"The situation is worse than it was in 2007. Our macroeconomic ammunition to fight downturns is essentially all used up," said William White, the Swiss-based chairman of the OECD's review committee and former chief economist of the Bank for International Settlements (BIS).

Scary article. The long and short of it is that if you think you have financial assets that are worth something, they may be worth a lot less or nothing.

Mind you, the stock market is saying much the same. If you remember a few years ago, the big advice from advisers was to get into emerging markets. Well now it's the emerging markets which are going to cause a major calamity that reaches beyond the current situation we have in Alberta with our resources.

[elkonthemind]

Been saying this for years with the international bank now bailing out first world nations instead of doing what it was intended to do which was give loans to 3rd world nations to improve the living for there people. This has been a long time coming as a world we cant leverage that much money and expect never to pay it back.

[reddeerguy2015]

Psht....banks....unstable.....hahahaha.

Maybe we need to check RBC's profits for 2015??

Give me a break.

[avb3]

Psht....banks....unstable.....hahahaha.

Maybe we need to check RBC's profits for 2015??

Give me a break.

Yeah, you might be right. After all what would a chief economist who is now the chair of the OECD review committee know anyways.

[Heyupduck]

Bail the banks out.
Bail the oil companies out.
Build an arena for a billionaire.
"Invest" overseas.

[The Elkster]

Default and reset. Happens all the time and will continue to happen. Certainly a wealth destroyer but not the end of the world. Much of that wealth was built on a house of cards anyways. True value always shines through

[58thecat]

Time to cash in some of that nazi gold the Swiss have hoarded away!

[79ford]

Most governments just accumulate more debt and generally only pay back what comes due. The mountains of debt we sit on are staggering. People them selves are pretty bad too, canadians hold the record for debt to income now.

I think it is funny how the talk of debt whether its people or governments has gone from how much debt in total to how big the payments are.... its the size of the payment that is what matters now, no one even wants to talk about the gobber pile of debt now,lol

The lousy part is the financially responsible ones have to pay for the dumb dumbs up to their eyeballs in debt via bailouts and record low interest rates to keep the whole mess from drowning in a big pool of debt.

No one wants to own up to the idea of normalizing interest rates, its just easier to keep the credit party rolling and asset prices inflated. Just like in Japan, nothing got truly cleansed so everything just stagnates.

Look at canada... Harper ran 150 billion in debt up trying to stimulate the economy, he stopped late enough to barely squeek in a 'balanced budget' now the economy is rolling back into the dumps and Trudeau is going to try the spend the way out of recession idea agaaaaaaiiin. Same with the ndp in alberta, what infrastructure are these numbnuts going to build that wasnt built with the last 150billion? Twin the highway to high level ab? Lol, quadruple qe2?

[qwert]

http://www.telegraph.co.uk/finance/financetopics/davos/12108569/World-faces-wave-of-epic-debt-defaults-fears-central-bank-veteran.html

The global financial system has become dangerously unstable and faces an avalanche of bankruptcies that will test social and political stability, a leading monetary theorist has warned.

"The situation is worse than it was in 2007. Our macroeconomic ammunition to fight downturns is essentially all used up," said William White, the Swiss-based chairman of the OECD's review committee and former chief economist of the Bank for International Settlements (BIS).

Scary article. The long and short of it is that if you think you have financial assets that are worth something, they may be worth a lot less or nothing.
snip

Anyone with any significant amounts of Bank deposits, GICs, RRSP, RESP, TFSA, pension certificates or similar deposit assets, or other Bank issued security, is strongly advised to learn the full meaning of the term 'Bail-in'.

Bail-in legislation is now in effect in most of the western BIS Central Bank regulated systems and economies.

Good Luck, YMMV

[bessiedog]

We need to establish what real demand is...

https://m.youtube.com/watch?v=GTQnarzmTOc


Sigh.....

Could be a rough ride..

[JimPS]

Smart people would have realized it was going to come down when the Rotheschilds were dumping a lot of their oil interests last year

Davos is an self congratulatory ritual during which the superrich and megapowerful take over half a mountain and lick each other all over.

Davos has nothing to do with reality. Reality is is that 20% of the worlds stock markets have suddenly disappeared.

The mainstream media keeps telling everyone not to panic. It is the time to sell, but mainstream media is urging people to jump in and take advantage of all of the “great deals” in the stock market right now.

[Grizzly Adams]

Even scarier is our PM showing up there and advising on how to deal with this.

Grizz

[From The Hip]

The big market meltdown of 2008/2009 is on again.Within the last 2 weeks Teck Resources stock almost hit the lows of 2009 when it hit $3.65 a share though the low of 2009 was $3.35 a share and AFTER Teck bought out Fording Coal for 14.5 Billion and forced the deal through in spite of the so called "credit crisis"

The start of 2016 has been nothing but a stupid panic selling period of stupidity IMO....people have been influenced by the panic and the hyperbole even more and are selling good bluechip stocks that have solid fundementals do to one thing and that is fear.

If I wont the Lotto Max for 55 million tomorrow the first thing I would do once I got the money would be to buy 1 million shares of Teck B stock because it has been over sold due to panic driven idiots.

Nothing but STUPID with regards to the stock markets to start 2016 thus far...nothing but panic and fear.....and you can bet the people that have signifigant amounts of money(millions-billions) are the ones buying up those panic sold shares knowing the storm will pass and they will eventually get richer.

FTH