Bankocracy

India bank run underway after $2B scam at state-run bank prompts bailout bill

"Indians are concerned that a proposed bill, which gives regulators the option to use public deposits to bail out a bank that goes bust, is pushing individuals to hoard cash. The government has repeatedly issued statements to assure the public that their money would be safe. These concerns are heightened by news that emerged in February of a $2 billion fraud at state-run Punjab National Bank, where a jeweler allegedly colluded with a bank employee to siphon off money before leaving the country."

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Washington may have had a hand in halting Dow meltdown

"Someone started arbitrarily and aggressively buying stocks and the decline was halved. Monday will still go down as a Wall Street massacre, but that anonymous superhero buyer or buyers made it a lot less bloody. Who was the market’s superhero? I’m going to tell you a story and then you decide."

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Governments Hate Bitcoin and Cash Because They Protect People’s Privacy

"If they're going to be so explicit in their hostility to the anonymity and liberty those means of exchange offer people, we should take them at their word. Let's be clear in response that what they see as problems are the precise features we like about cash and cryptocurrencies. We support our well-worn folding money and bitcoin and its successors to come precisely because they put at least some of our activities beyond the reach of control freaks who want to monitor, tax, and regulate our lives."

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Yellen Says Prices `High’ for Stocks, Commercial Real Estate

"Outgoing Federal Reserve Chair Janet Yellen said U.S. stocks and commercial real estate prices are elevated but stopped short of saying those markets are in a bubble. 'What we look at is, if stock prices or asset prices more generally were to fall, what would that mean for the economy as a whole?' Yellen said. 'And I think our overall judgment is that, if there were to be a decline in asset valuations, it would not damage unduly the core of our financial system.'"

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Bank of Japan Panics At Surging Rates, Offers To Buy Unlimited Debt

"As global bond yields break ever higher, it appears The Bank of Japan is realizing it is losing control of its yield curve and today unleashed a double-whammy to stifle the bond bears... Whammy 1 - BoJ offers to buy unlimited 10Y notes at 11bps. Result - a 0.5bps drop in the JGB yield!!"

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Yellen’s Final Act Is To Ban Wells Fargo From Growing

"Until Wells Fargo addresses shortcomings in areas including internal oversight, it can’t take any action that would boost total assets beyond their level at the end of 2017, without the Fed’s permission. The bank said after-tax profit in 2018 would be reduced by $300 million to $400 million and its stock slumped in late trading Friday."

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China promises bank rescue in next crisis

"China’s financial regulator has vowed to rescue the Chinese banking system immediately to avert a banking crisis when the bubble bursts, issuing a blanket guarantee that no major institution will be allowed to fail. Beijing says it has studied the errors that led to the Lehman crisis in the 2008 and will not allow a chain reaction to occur, even if this means paying a price in terms of lost economic growth and dynamism."

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