The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
That’s cos their isn’t a banking crisis
I am starting to suspect this current banking crises is genetically engineered by the Fed and Co.
Rising rates when they shouldn't out of an inflation caused mainly because of the Ukrainian war and supply gluts after covid...not because booming economy and increased demand.
Hmmm, there are 1000 of small banks in USA ready to fail, some will be taken over by the US big banks making a great profit , like JPM did.
The changed the rules of a filing bank, doing without paying creditors. Writing off debit with ok from the US Gov agencies and getting a nice cash injection. Even in the banking world the big get bigger, once only few banks will hold the majority of retails account and deposit, they will introduce digital currency...
There is a lot to like about Charlie Munger, and he has seen a lot ....
Inflation and aggressive central bank interest rate rises are the top concern of many global investors, but the 98-year-old is not overly concerned.
“I’m always aware of it, but it doesn’t stop me from operating,” Munger says.
“I’m 98½ years of age, and I’ve seen a lot of inflation. I intend to live through inflation. I’ve lived through a lot of it already in my long life. It doesn’t discourage.”
Munger says inflation is “always with us in an episodic way”.
“That’s what modernity causes. So, eventually, I assume every currency in the world will go down to nothing. That’s my basic cynical view.”
Monday May 01, 2023
Cryptocurrency prices were down in trading on Monday as the announced takeover of First Republic Bank by JPMorgan led to volatility across all financial markets and a spike in investors' concerns about the state of the global financial system.
https://www.kitco.com/news/2023-05-01/Bitcoin-price-in-freefall-plunges-below-28k-as-traders-flee-financial-markets.html
Monday May 01, 2023
President Biden insists that legislation be passed to raise the debt ceiling without any additional conditions. The president’s response was, "Folks, it’s the same old trickle-down dressed up in MAGA clothing. Only worse…The cuts target programs that millions of working-and middle-class Americans count on while separately pushing more tax giveaways that benefit corporations and the wealthy."
https://www.kitco.com/commentaries/2023-05-01/Treasury-Secretary-Yellen-Warns-that-the-US-could-breach-debt-ceiling-next-month.html
Monday May 01, 2023
The U.S. and China are on the brink of war, billionaire and Bridgewater's founder Ray Dalio warned in a letter he penned on LinkedIn.
"We are on the brink of an economic resources war," the founder of the world's largest hedge fund wrote last week.
And the two nations are beyond "the ability to talk," he said.
Bridgewater's founder also urged the U.S. and China to agree to specific rules if war broke out to contain the conflict. For example, agreeing not to kill each other's troops, not to fight on each other's land, and not to use nuclear weapons.
"If there is a military war it would be good to have agreements such as 1) no side's military will directly kill the other side's military, 2) no fighting will take place on the other side's lands, and 3) neither side will use nuclear, cyber, and space weapons, etc," he said. "It is hoped that in that way, if there is war, it will be contained."
Dalio also made his thoughts known about gold and Bitcoin in a recent interview with podcaster Chris Williamson.
When asked about the crypto space, Dalio said he owns a small amount of Bitcoin but favors gold.
https://www.kitco.com/news/2023-05-01/Ray-Dalio-The-U-S-and-China-are-on-the-brink-of-an-economic-resources-war.html
US debt ceiling standoff: Platinum coins, the 14th Amendment could be paths out.
Kitco news. Reuters.
It will simply send a signal to the rest of the world ,of the truth.
The Reserve Bank of Australia has raised interest rates to 3.85 per cent, The Reserve Bank of Australia has raised interest rates to 3.85 per cent, stunning economists and markets, which were predicting almost no chance of an increase just one month after the central bank hit pause.
The decision to raise the cash rate by 0.25 percentage points takes the cumulative increase in rates since last May to 375 basis points, making it the most rapid tightening cycle in a generation !!!
The outcome of Tuesday’s board meeting was a shock to economists and money markets, which were pricing almost no chance of a move given the RBA’s recent rhetoric and evidence that households are cutting back on spending.
Twenty-one of the 30 economists surveyed by Bloomberg had forecast the cash rate to be left on hold.
But RBA governor Philip Lowe said on Tuesday inflation was still too high.
The lunatics are well in charge of the asylum
good luck to us all
the gnome
Duh!
:)
Stock markets in Europe traded mostly higher premarket on Tuesday as they return from a holiday weekend to a busy day for data and earnings. The preliminary inflation report for April will be published later in the day, as will a number of releases on the state of private sectors across the continent. HSBC posted its Q1 earnings, with revenue surging 64% to $20.2 billion, while companies such as UniCredit and BP are to follow.
The FTSE 100 rose 0.22%, while the DAX added 0.19% at 8:01 am CET. The CAC 40 gained 0.26%, and the Euro Stoxx 50 lost 0.21% a minute later.
The euro traded 0.09% higher against the dollar, going for 1.09845. The pound sterling was flat compared to the greenback, selling for 1.24963.
Baha Breaking News (BBN) / DJ
Happy Monday y’al
So what's changed this time, nothing really!
Financial crisis - Silly Money, Nov 08
https://www.youtube.com/watch?v=H1LyFWw0jwk
https://www.youtube.com/watch?v=-N6xtvZHwBM
Thanks Lucky, "You know it makes sense" .from Only fools and horses ,a wonderful Dell Boy quote..
Spot on MrBond46
People panic and withdraw money from FR, rumours spread and panic settled in...
This time thought the Fed had learned their lesson from 2008/9 crises and by twisting some definition of QE of bank failure, they have manager to kick the can down the road on more time.
Problem is if they keep interfering with market forces and rise rates, their financial problems are just getting bigger and next bank to fail may as well be JPM.
I am expecting/hoping after this week expected Fed rate rise, that POG will start to move higher. Some sort of sell the news on USD Index where, the reality of the miserable state of US economy is right now, starts to become clear.
Should read First republica,typo.
Infation double edged sword using more rate hikes ,could cause more problems for the Banksters with their dodgy dealing. Rate hike already in the algos, but algos are only as good as their programmers.
Theres no panic now that Fed Republic has been awarded by the FED.
But there was earlier with people withdrawing ,that was panic,and understandable panic.
The FED is now on the edge of panic ,along with government ,in case there are repetitions Espescilly before next years election. It would not show good governance.
I don’t want any crisis’, what we need is a rapid decrease in inflation, preferable with some items eg fuel, deflating. Gold and CEY(mining PMs) generally move most at more extreme moves eg faster than expecting dropping of inflation- this is what I’m hoping for. Any crisis generally whacks all stocks
https://www.kitco.com/gold-price-today-usa/
(Kitco News) The gold market reversed gains and fell below $2,000 an ounce after data showed the U.S. manufacturing sector contracting for the sixth consecutive month in April.
The Institute for Supply Management (ISM) manufacturing index was at 47.1% last month, slightly better than the expected 46.8%. The April figure was also 0.8 percentage points higher than March’s 46.3%.
https://www.kitco.com/news/2023-05-01/Gold-price-drops-below-2-000-as-U-S-manufacturing-sector-contracts-for-sixth-month-in-a-row.html
https://www.kitco.com/news/2023-05-01/2-JPMorgan-buys-First-Republic-Bank-s-assets,
The Federal Reserve System was established by Congress over a century ago to serve as the U.S. central bank. President Woodrow Wilson signed the Federal Reserve Act into law on December 23, 1913.
https://www.federalreserve.gov/faqs/about_14986.htm
https://www.usagold.com/cpmforum/who-owns-and-controls-the-federal-reserve/
Separate issues - no bank panic- struggle why people think there is
I might be wrong but with JPM intervention on FR, it seem banks troubles are not going to make any particular change to POG... I like the wordings from the media been "JPM taking over" next they may even make it look like a hostile bid.....in the end it was another bank failure, transfered to USA debit account via JPM and with the masterfully orchestrated accounting practice of Fed Reserve, been the auditors... To shock the ponzy scheme system of USD hegemony, we need another black swan event, problem is with so much information outh there the financial mafia is able to organise it self and mitigate any "Lemhan Brothers" type of event. No dubt for gold it would help been included in a BRICS newly created currency, silly policies to rise rates without hedging on gold, when a country has a debit that will never be repaied.
... troubled banks to be rescued by some other bigger banks.
If this is not going to happen and First Republic will fail imo it will renew fear and create some shockwave throughout the markets. Unfortunately is is going to be good for POG and gold miners, may not be good for other shares.
https://www.investing.com/news/stock-market-news/pnc-jpm-putting-in-final-bids-for-first-republic-in-fdic-auction-sources-3068547
A bit more detailed news on First Republic on Monday, for UK market will be Tuesday as tomorrow market in UK is close.
After the first shock news of bank troubles and consequent POG spike up, the FDIC has managed to calm the market with reassurance of insures deposits up to $250,000 and I think providing some liquidity. But the aim was always to allow for the trabled banks to be resqued by some
April 28 (Reuters) - The Federal Reserve on Friday blamed the deregulatory zeal that occurred during the Trump era for contributing to the second-largest bank failure in U.S. history, appearing to take a clear stand on an acrimonious policy divide in Washington.
https://www.reuters.com/business/finance/us-fed-points-finger-trump-era-rollback-svb-demise-2023-04-29/
Hi Mr Bond, this may well be the case,,but as we all know from past events what should happen and what actually happens are very different!
Michael Lee, Founder of Michael Lee Strategy and a former Morgan Stanley VP, said, “I don’t see how First Republic opens as First Republic on Monday morning.”
In an interview with Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, Lee claimed that the U.S. has not seen the last of the banking crisis, which started in March with the closure of three banks: Silvergate, Silicon Valley Bank, and Signature.
“You’ll see a lot less small savings banks, across the country,” he forecast. “We could get the number of banks [across the U.S.] cut in half, just from consolidation… that collapse in lending that you’re going to see countrywide is what is going to slow the economy down. It’s what is going to get inflation under control.”
https://www.kitco.com/news/2023-04-28/First-Republic-meets-its-end-financial-calamity-will-send-gold-above-5k-Michael-Lee.html