investment

Private equity crash could trigger next wave of financial crisis, Bank of England warns

"The Bank of England warned on Thursday that the next phase of the UK's six-year financial and economic crisis may be triggered by the collapse of debt-laden companies bought by private equity firms in the boom years before the crash. In its latest quarterly bulletin, Threadneedle Street said the need over the next year to refinance firms subject to heavily leveraged buyouts posed a systemic threat. The Bank added that it would use its new role as the watchdog of the City to monitor private equity deals in future 'episodes of exuberance' to prevent a repeat of the debt-driven takeover boom in the run-up to the banking crisis." Continue reading →

Continue ReadingPrivate equity crash could trigger next wave of financial crisis, Bank of England warns

Euro woes not over, says crisis-wary Bundesbank

"A wary German central bank said on Tuesday it had set aside billions more euros against what it deems risky European Central Bank moves, and criticized France directly for "floundering" in its reform drives. Presenting Bundesbank 2012 results, Jens Weidmann, the bank's chief, said the euro zone crisis, which has eased as a result of ECB funding promises, was not over. Weidmann, a member of the ECB's Governing Council, opposed the bank's yet-to-be-used bond-buy plan agreed last September and believeseuro zone governments must shape up their economies to exit the crisis rather than looking to the ECB for help." Continue reading →

Continue ReadingEuro woes not over, says crisis-wary Bundesbank

More Entrepreneurs Say “Au Revoir”, Escape France’s Confiscatory Tax Regime

"New evidence of top French executives leaving the country has emerged as President Francois Hollande battles a stalling economy and tumbling approval ratings. Two senior executives at Moet Hennessy, the champagne and cognac arm of the LVMH luxury group, are moving to London from Paris and the head of Dassault Systemes, the software arm of Dassault Aviation, said some senior managers of his company had left and he was considering following suit. …The news follows Mr Arnault’s own application for Belgian citizenship, leaked last September, which poured fuel on a fiery debate in France about entrepreneurship, patriotism and high taxes." Continue reading →

Continue ReadingMore Entrepreneurs Say “Au Revoir”, Escape France’s Confiscatory Tax Regime

Kyle Bass Warns: “The ‘AIG’ Of The World Is Back”

"His single best investment idea for the next ten years is, 'Sell JPY, Buy Gold, and go to sleep,' as he warns of the current situation in markets, 'we are right back there! The brevity of financial memory is about two years.' The main thrust of the discussion is Bass' thesis on Japan's pending collapse - which we wrote in detail on here, here, and here - and while the details of this thesis should prepare most for the worst, it is the Q&A that provides some very clear insights into just what is going on in the world." Continue reading →

Continue ReadingKyle Bass Warns: “The ‘AIG’ Of The World Is Back”

Norway’s Sovereign Wealth Fund Flees Currencies Tainted by Stimulus Addiction

"Norway’s $713 billion sovereign wealth fund is turning away from the world’s biggest currencies and their debt-laden governments as policy makers undermine their exchange rates through unprecedented stimulus measures. The Government Pension Fund Global, the world’s largest wealth fund, cut its holdings in French and U.K. government bonds by almost half last year as it raised its share of government bonds in emerging-market currencies to 10 percent of its fixed-income holdings by adding investments in Turkey, Russia and Taiwan." Continue reading →

Continue ReadingNorway’s Sovereign Wealth Fund Flees Currencies Tainted by Stimulus Addiction

Which Fed Members Move the Market?

"[The chart] shows the sum of the absolute value of the impact on the ten-year Treasury yield of each member's public speeches. Chairman Bernanke tops the list with a total impact of 18 basis points. President Lockhart came in second place with an impact of 17 basis points, and President Fisher was third with about 16 basis points." Continue reading →

Continue ReadingWhich Fed Members Move the Market?

Japan PM: Hyperinflation ‘Unthinkable’ Even With Bold Easing

"Hyperinflation is 'unthinkable,' Prime Minister Shinzo Abe said Monday, citing the Bank of Japan's ability to make adjustments after enacting bold monetary easing. 'If the rate of inflation exceeds the 2% target, the BOJ would naturally proceed with a policy to keep it within 2%,' he told reporters. At the same time, Abe noted that the government 'must keep a keen eye on trends in prices and long-term interest rates.' The prime minister stressed the need to improve the country's finances, indicating a stance of limiting monetary policy side effects with an eye on government bond prices." Continue reading →

Continue ReadingJapan PM: Hyperinflation ‘Unthinkable’ Even With Bold Easing

These Vehicles Are Tons of Fun, and Good for Thwarting Road Rage

"Weapons buffs may stock semiautomatics in the gun safe. But nothing makes a statement like having an Army tank in the garage. Scattered around the country are members of a small fraternity of guys who own tanks. They are hyper-avid history buffs or hyper-edgy investors or just wealthy men who can now afford hyper-sized versions of the toys they played with when they were boys. Tank brokers—yes, there is such a thing—estimate there are several hundred to 1,000 private tank owners in the U.S." Continue reading →

Continue ReadingThese Vehicles Are Tons of Fun, and Good for Thwarting Road Rage

Gun-control demagoguery is a lethal weapon

"Despite tough economic times, firearms and ammunition companies have created nearly 27,000 well-paying jobs over the past two years alone. Smart lawmakers from Texas, Michigan, Oklahoma, Arizona, and South Carolina are now courting Remington away from New York and Magpul away from Colorado. For now, these states can offer business-friendly, Second Amendment–defending climates that support a demonized industry. But how much longer will it be until Obama and the pro-jobs hypocrites on Capitol Hill find new, more nefarious ways to obstruct this innovation-driving, wealth-producing sector of the American economy?" Continue reading →

Continue ReadingGun-control demagoguery is a lethal weapon

French and Italian debt chiefs warn on EU Tobin Tax

"The proposal - now in the hands of working groups - is to come into force in early 2014. It will raise a fee of 0.1pc for shares and bonds, and 0.01pc for derivatives. These rates are far higher than the Swedish tax in 1989 that led to an 85pc crash in bond sales, a 98pc fall in bond futures, and shut-down of options trading, before the experiment was abandoned. The Chancellor, George Osborne, said the FTT scheme would amount to a tax on pensioners and cost up to 1m jobs across the EU 'without costing bankers a penny'. The traders would migrate to the US or Asia, taking the financial industry with them." Continue reading →

Continue ReadingFrench and Italian debt chiefs warn on EU Tobin Tax