Friday, October 26, 2018

YELLEN: THEIR CRONY BANKSTERS ARE BACK AT IT!!! - FORMER FED CHAIR WARNS OF NEW FINANCIAL CRISIS - BOTTOMLESS BANKSTER BAILOUTS AHEAD ...... Again?????

YOU CAN SEPARATE THE CLINTONS, THE OBOMBS AND SWAMP KEEER TRUMP FROM THEIR CRONY PLUNDERING BANKSTERS!


"In remarks unprecedented for a former central banker, Yellen told the newspaper that the lessons of the financial crash of 2008 were being forgotten as banks were pushing to water down regulations that had been put in place since then."

Former Fed chair warns of new financial crisis

By Nick Beams 
26 October 2018
In the midst of increasing volatility on global financial markets, the former chair of the US Federal Reserve, Janet Yellen, has pointed to a potential source of major instability with “systemic risks.”
In an interview with the Financial Times to be 

 published today, Yellen said there had been a 

 “huge deterioration” in the standards of bank 

 lending to corporations as a result of moves 

 to lessen regulation.
Her focus of concern is so-called leveraged loans which are provided to companies with weaker credit ratings—a market which amounts to $1.3 trillion in the US.
“I am worried about the systemic risks associated with these loans,” she said. “There has been a huge deterioration in standards; covenants have been loosened in leveraged lending.”
In remarks unprecedented for a former central banker, Yellen told the newspaper that the lessons of the financial crash of 2008 were being forgotten as banks were pushing to water down regulations that had been put in place since then.
“There are a lot of weaknesses in the system, and instead of looking to remedy those weaknesses I feel things have turned in a very deregulatory direction.”
Yellen’s remarks echo views expressed during the meeting of the Fed’s Open Market Committee at its last meeting in September. According to the minutes published earlier this month: “Some participants commented about the continued growth in leveraged loans, the loosening of terms and standards on these loans, or the growth of this activity in the nonbank sector as reasons to be mindful of vulnerabilities and possible risks to financial stability.”
The Fed had pointed to the rise of leveraged loans to highly indebted companies in previous meetings. But the September meeting was the first time such loans had been mentioned as a possible risk to financial stability.
These warnings were underscored in remarks made by Todd Vermilyea, the Fed’s head of risk and surveillance, at a finance industry conference in New York on Wednesday. He said there could be “weaknesses in risk management.”
While the conference was closed to the 

 press, the Wall Street Journal reported that 

 “Vermilyea’s remarks were spurred by 

 emerging trends that he said would threaten 

 the safety and soundness of the biggest 

 banks.” The article cited Morgan Stanley, 

 Goldman Sachs and Credit Suisse as being 

 among firms “that have recently participated 

 in deals that exceeded what the Fed 

 previously deemed appropriate.”

One of the key risks associated with leveraged loans is that they are repackaged into collateralised loan obligations (CLOs) that are bought and sold by investors—a similar process to that which occurred in the sub-prime mortgage market which set off the financial meltdown ten years ago when a crisis in one, relatively small area of the market, spread throughout the system.

In September, the Bank for International Settlements pointed to the possible consequences of a similar downturn in the leveraged loans sector.
It said that because mutual funds are a major buyer of CLOs, “mark-to-market losses could spur fund redemptions, induce fire sales and further depress prices. These dynamics may affect not only investors holding these loans but also the broader economy by blocking the flow of funds to the leveraged credit market.”
In other words, because of the interconnected nature of the operations of the banks, corporations and investment funds, a major loss or downturn in one area could rapidly spread throughout the global financial system.
Yellen also drew attention to the fact that much of the debt held by the banks is repackaged and then sold on to other investors.
“You are supposed to realise from the crisis, it is not just a question of what banks do that imperils themselves, it is what they do that can create risks to the entire financial system. That lesson to me seems to have been lost.”
Yellen warned that if there was a “downturn in the economy, there are a lot of firms that will go bankrupt, I think, because of this debt. It would probably worsen a downturn.”
Since the coming to power of the Trump 

 administration, even the limited regulations 

 introduced after the financial crash have 

 been wound back together with the 

 appointment of what the Financial 

 Times called a “phalanx of regulators with 

 softer-touch agendas.”
“When I see what is happening politically with lobbying and the pushback on the regulators and the priorities of some of the regulators, I am really concerned we are on the verge of forgetting about the financial crisis and the need for stronger regulation,” Yellen said.
The Bank of England (BoE) has also warned of the rise of leveraged loans, which it defines as those made to a company whose debt is more than four times its earnings before interest and tax deductions. In the US, the ratio is more than five and a half times the loans, with the proportion even higher in Europe.
Moreover, according to the BoE, some 80 percent of these loans are “covenant-lite,” that is, they do not have the protections that were previously demanded for lending to riskier companies. Before the financial crisis only a quarter of such loans fell into the “covenant-lite” category.
One of the main driving forces behind the rise of leveraged loans has been their use by private equity investors, which use their already indebted companies to raise even more money to fund mergers and acquisitions. That is, the money is not used to finance productive activity but for speculation.
The latest Financial Policy Committee report of the BoE said that the global leveraged market was growing at a faster rate than the US subprime market in 2006. It said that, as with the subprime market, underwriting standards had been weakened and because of the “significant uncertainty” surrounding the ultimate investors in the collateralised loan obligations it was not clear who would bear the costs of any losses or whether they would have the capacity to absorb them.
The ratings agency Moody’s has also warned of the dangers posed by the rise of leveraged loans. Last August, Moody’s senior vice-president Christina Padgett warned that a combination of “aggressive financial policies”—the willingness of investors to take greater risks as they searched for profits—“deteriorating debt cushions,” and a greater number of “less credit worthy firms” seeking loans was “creating credit risks that foreshadow an extended and meaningful default cycle once the current expansion ends.”
In other words, an economic downturn would see a string of bankruptcies. When that warning was issued, just two months ago, it appeared that the US economy was still powering ahead. But the outlook has significantly changed since then, with warnings that the so-called “synchronised” upturn in the global economy is moving in the opposite direction—fears of which are a significant factor in the gyrations on the US stock market since it reached its high earlier this month.
The warnings by Yellen and major financial 

 institutions point to the undeniable fact that 

 ten years after the global financial crisis, none

 of the contradictions of the global economy 

 and financial system have been resolved. 

 Indeed the very measures enacted by the Fed

 and other central banks in propping the 

 system through the injection of trillions of 

 dollars have only created the conditions for an

 even bigger disaster.
The bitter experiences of the past decade have already revealed what the response of the ruling elites will be. There will be no reforms but rather a stepped up assault on the social position of the working class enforced by the development of ever more authoritarian forms of rule.

Wall Street volatile as global economy becomes “fragile”

By Nick Beams 
19 October 2018

Volatility has continued on Wall Street following two days of major falls last week. The Dow Jones index shot up by more than 500 points on Tuesday, followed by a more than 300-point decline during Wednesday before recovering to finish 80 points down.
Yesterday, after a global sell-off, the Dow finished down by 327 points, after dropping 470 points during the course of the day. In what was described as a “jittery session,” the S&P 500 was down 1.4 percent, its largest fall in a week, and has now experienced a decline in 10 out of the 14 trading sessions this month.
The immediate volatility is being driven by two conflicting tendencies. On the one hand, US markets are being pushed down by the further expected increases in the Federal Reserve’s base interest rate and the general tightening of monetary conditions expressed in the rise of the rate on the benchmark 10-year US Treasury bond, which is now hovering around 3.2 percent. Monetary conditions are also being made more restrictive by the Fed’s reduction of its assets holdings by $50 billion per month as part of its program to reduce its balance sheet. Its previous quantitative easing program saw Fed assets expand from less than $1 trillion to $4.5 trillion.
On the other hand, share prices are being boosted by the rise in profits being reported by banks and major companies. There is also an expectation that US growth will continue and that, while asset valuations may be “stretched,” there is still some way for the market to run and gains to be reaped.
The underlying instability and fears of a major sell-off were underscored by further comments by US President Donald Trump following his denunciation of the Fed’s interest rate rises as “crazy” and “loco” during last week’s sell-off. In an interview with the Fox Business News Network, he repeated his assertion that the Fed was raising interest rates too fast and described the central bank’s actions as “my biggest threat.”
Nominally adhering to the independence of the Fed, Trump said he had not spoken to its chairman Jerome Powell, whom he appointed last year. But he was “not happy” with what Powell was doing, “because it’s going too fast.” Powell, he asserted, was “being extremely conservative, to use a nice term.”
Former Fed chairwoman Janet Yellen weighed into the debate, saying she agreed with the Fed’s present policies and that there was a danger of the economy overheating. She said the present growth rate of 3 percent was “terrific” but cast doubt on whether it was sustainable in the longer term. The Fed would need to be “skilful and lucky” to achieve a soft landing after 2019.
It is a significant observation when a former Fed chief remarks that US growth needs “luck” to continue.
The minutes from the Fed’s interest-rate setting Open Market Committee of September 25-26, released on Wednesday, indicated that the central bank is still on course for another interest rate rise in December, with some participants wanting to tighten policy still further.
The minutes noted that some members thought it would be necessary to “temporarily raise the federal funds rate above their assessments of its longer-run level in order to reduce the risk of a sustained overshooting of the Committee’s two percent inflation objective or the risk posed by significant financial imbalances.”
The chief concern is not with inflation per se but whether the lowering of the unemployment rate and labour shortages lead to a significant push for increased wages, which the Fed is determined to suppress.
Market volatility is also being fuelled by the worsening global economic outlook resulting from the rise in US interest rates, the increasing value of the dollar, and the escalation of trade tensions between the US, China and other countries.
The dollar’s rising value has a major impact on emerging markets because it increases the real level of dollar-denominated loans, making the repayment of the interest and principal more expensive. The Financial Times has described the situation facing emerging markets as “ugly,” noting that the JPMorgan Chase EM currency index has fallen by 12 percent since April. Stock markets have also been hit, with the MSCI Emerging Markets Index down by more than 16 percent in the same period.
The elevated stock market values in the US stand in contrast to the rest of the world. While the S&P 500 index is up more than 4 percent for the year, the Stoxx Europe 600 index has experienced a 6.2 percent decline, Japan’s Nikkei 225 is down by 0.9 percent and the Shanghai Composite has fallen by 23 percent.
Trade tensions are continuing to rise. There was a sharp exchange at a World Trade Organisation (WTO) meeting on Tuesday between the US representative Dennis Shea and his Chinese counterpart Zhang Xiangchen.
Shea demanded that the WTO confront China’s alleged trade abuses and remove its rights as a developing economy. Zhang countered that “no one can be singled out” and that efforts to undermine the basic principles of the organisation had to be opposed. But Shea insisted that the world body target China.
“Adequately responding to the challenges of non-market economies is nothing less than an existential matter for this institution,” Shea said.
This is a thinly-veiled threat that unless the WTO takes action over what the US calls China’s “market-distorting” policies, including subsidies for state-backed industries and its alleged acquisition of high-tech knowledge through forced technology transfers or outright theft, it will withdraw from the body.
The US has already significantly undermined the WTO by blocking the appointment of members to its appellate body, which has the final say on trade disputes. The Trump administration has refused for more than a year to consider new appointments because it says former members went beyond their mandate and took an “activist approach” detrimental to the US. The administration’s actions have reduced the normally seven-member body to just three and if the present stand-off continues it will not be able to function past December next year.
As part of its trade war against China, the US has been seeking to bring its “strategic allies” into its camp by opening up negotiations with them on bilateral trade deals. These moves, including the recently-concluded US Mexico Canada Agreement (USMCA) and agreements with the European Union and Japan for one-on-one negotiations, have been accompanied by threats of auto tariffs of up to 25 percent.
In addition, the USMCA contained what the US side characterised as a “poison pill.” If either of the other partners entered a free trade agreement with a “non-market” economy, namely China, the US could withdraw. US trade officials have made it clear they want to see this provision included in other bilateral deals.
Negotiations with Europe, agreed on at a meeting between Trump and European Commission President Jean-Claude Junker in July, have already produced conflict.
In talks on Wednesday each side accused the other of undermining the July agreement. Commerce Secretary Wilbur Ross said of his EU counterpart Cecilia Malmstrom that it was “as though she was at a different meeting from the one that we attended.”
Ross said the purpose of the meeting was to get “near-term deliverables including both tariff relief and standards.” Trump’s “patience was not unlimited.”
Malmstrom said the EU had asked several times for a “scoping exercise”—the prelude to a full-scale trade deal—but the US had failed to respond. “So far,” she stated, “the US has not shown any big interest there, so the ball is in their court.”
Ross said the contention that the US was slowing things down was “simply inaccurate.” The US ambassador to the EU, Gordon Sondland, was even more blunt and implicitly raised the threat that auto tariffs could be put back on the agenda.
“If the president sees more quotes like the one that came out today his patience will come to an end,” Sondland said, attacking the “complete intransigence” of the EU and warning that any attempt to “wait out” Trump’s term as president was a “futile exercise.”
Warning that politics was putting the “skids under the bull market,” Financial Times economics commentator Martin Wolf wrote on Wednesday that, as the recent IMF meeting had made clear, reasons for concern “abound.” Above all, the “struggle between old and new superpowers” could “change everything.”
Wolf noted that the valuation of risky assets was “stretched” and just a small shift in global financial conditions could damage not only emerging markets. Wolf said the aggregate debt in countries “with systemically important financial sectors now stands at $167 trillion, or over 250 percent of aggregate gross domestic product,” compared with 210 percent in 2008.
The global economy and financial systems are “fragile,” Wolf concluded. “These are dangerous times—far more so than many now recognise. The IMF’s warnings are timely, but predictably understated. Our world is being turned upside down. The idea that the economy will motor on regardless while this happens is a fantasy.”


OBAMA’S CRONY BANKSTERS:
STILL SUCKING THE BLOOD OUT OF AMERICA
http://mexicanoccupation.blogspot.com/2014/01/fifty-years-since-johnsons-declaration.html
This manufactured crisis has, in turn, been exploited by the Obama administration and both big business parties to hand over trillions in pension funds and other public assets to the financial kleptocracy that rules America.
 “Our entire crony capitalist system, Democrat and Republican alike, has become a kleptocracy approaching par with third-world hell-holes.  This is the way a great country is raided by its elite.” ---- Karen McQuillan  THEAMERICAN THINKER.com

“This was not because of difficulties in securing indictments or convictions. On the contrary, Attorney General Eric Holder told a Senate committee in March of 2013 that the Obama administration chose not to prosecute the big banks or their CEOs because to do so might “have a negative impact on the national economy.”



OBAMANOMICS TO SERVE BANKSTERS 

AND GLOBAL BILLIONAIRES



"One of the premier institutions of big business, JP Morgan Chase, issued an internal report on the eve of the 10th anniversary of the 2008 crash, which warned that another “great liquidity crisis” was possible, and that a government bailout on the scale of that effected by Bush and Obama will produce social unrest, “in light of the potential impact of central bank actions in driving inequality between asset owners and labor."  

CLINTON MAFIA AND THEIR BANKSTERS AT GOLDMAN SACHS
WHO IS TIGHTER WITH THE PLUNDERING BANKSTERS? CLINTON, OBAMA or TRUMP?

The Clinton White House famously abolished the Glass–Steagall legislation, which separated commercial and investment banking. The move was a boon for Wall Street firms and led to major bank mergers that some analysts say helped contribute to the 2008 financial crisis.

Bill and Hillary Clinton raked in massive speaking fees from Goldman Sachs, with CNN documenting a total of at least $7.7 million in paid speeches to big financial firms, including Goldman Sachs and UBS. Hillary Clinton made $675,000 from speeches to Goldman Sachs specifically, and her husband secured more than $1,550,000 from Goldman speeches. In 2005 alone, Bill Clinton collected over $500,000 from three Goldman Sachs events.



Hillary Clinton is simply the epitome of the rabid self – a whirlpool of selfishness, greed, and malignance.


It may well be true that Donald Trump has made his greatest contribution to the nation before even taking office:  the political destruction of Hillary Clinton and her infinitely corrupt machine. J.R. Dunn


"Hillary will do anything to distract you from her reckless record and the damage to the Democratic Party and the America she and The Obama's have created."

CHELSEA CLINTON IS SAVING THE PLANET WITH SHORTER SHOWERS, PRIVATE JETS



October 26, 2018

Daniel Greenfield
Don't you care about the planet?
While you wallow lasciviously in your shower for a whole 5 minutes or 600 seconds, the noble heroes of the Left are sacrificing their shower time to save the planet.
Here's a heartbreaking interview with Chelsea Clinton, possible presidential candidate in 2024.
Q. What changes have you made in the past five years in your family life to be environmentally conscious?
A. I’ve always recycled and used smart light bulbs and tried to take short showers. The things that seem small are the things that if we all did would make a profound impact. 
And the really small things, like taking smaller private jets.
Chelsea Clinton opted to travel to a “clean energy” roundtable in this week in a private jet to campaign on behalf of her mother Hillary Clinton.
Clinton first attended two events in Greenville, North Carolina, stopping by a campaign office and then going to an event at East Carolina University to discuss college affordability.
After her two events in Greenville, Clinton was scheduled to attend a “clean energy roundtable” in Asheville, which is about a 5-hour drive away. But instead of driving or flying on a commercial plane, Clinton opted to a take a private jet. The NTK Network posted a tracking video that shows Clinton boarding the private jet on Wednesday.
It's important that we do everything we can to save the planet from the Flying Global Warming Monster. Like flying shorter flights while taking shorter showers on board those private jets.
Also, in huge news, Chelsea Clinton once again mentioned that she might mull running for office if someone steps down, or retires, or everyone in the Democrat Party dies leaving them with no choice but Chelsea Clinton.



THE GRIFTERS: HILLARY, BILLARY and 

CHELSEA… global looters!


"But there is no doubt in my mind that the Clintons, thoroughly practiced grifters that they are, as well as their increasingly shady daughter, will not hesitate to use  such classified information as they may be able to access for personal and political enrichment.  They've been doing it  for decades, and they're not about to stop now." RUSS VAUGHN


Hillary Clinton is simply the epitome of the rabid self – a whirlpool of selfishness, greed, and malignance.


It may well be true that Donald Trump has made his greatest contribution to the nation before even taking office:  the political destruction of Hillary Clinton and her infinitely corrupt machine. J.R. Dunn

"Hillary will do anything to distract you from her reckless record and the damage to the Democratic Party and the America she and The Obama's have created."

HILLARY & BILLARY: The Evita and Juan Peron of Wall Street

Their Looting of the Poor of Haiti IS FINALLY OVER



“The couple parlayed lives supposedly spent in “public service”
into admission into the upper stratosphere of American wealth, with incomes in
the top 0.1 percent bracket. The source of this vast wealth was a political
machine that might well be dubbed “Clinton, Inc.” This consists essentially of
a seedy money-laundering operation to ensure big business support for the
Clintons’ political ambitions as well as their personal fortunes. The basic
components of the operation are lavishly paid speeches to Wall Street and Fortune 500 audiences, corporate campaign contributions, and donations to the
ostensibly philanthropic Clinton Foundation.”
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