Mainstream News

Brazil Halts Muni Market as Banks Collect $140 Mln Fees

"A year after it began, Brazil’s municipal bond market has been brought to a standstill by the federal government after Credit Suisse Group AG (CSGN) and Bank of America Corp. provoked a backlash by collecting $140 million in fees from the first two borrowings. Brazilian Treasury officials, who approve state financing requests and provide guarantees backing loans, are starting to demand terms to curb the profits, seeking to protect taxpayers from being exploited and to limit their own borrowing costs while alienating bankers in the process." Continue reading →

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Needy EU Nations Woo Chinese Home Buyers to Ease Slump

"Cyprus, Greece and Portugal are providing resident permits to foreign buyers, while Spain is about to adopt a similar measure. The chance to purchase a home at depressed prices in southern Europe and gain what’s known as a golden visa is mostly being sold to Chinese investors, according to brokers. Southern Europe is the latest target for rich Chinese homebuyers, who have been snapping up properties from Vancouver to London since 2010 as their wealth swells and China’s government steps up a three-year campaign to cool home prices there. The number of millionaires in China rose 4 percent from the previous 12 months to 2.8 million." Continue reading →

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Cyprus Bank’s Bailout Hands Ownership to Russian Plutocrats

"When European leaders engineered a harsh bailout deal for this tiny Mediterranean nation in March, they cheered the end of an economic model fueled by a flood of cash from Russia. The exercise was meant to banish what Germany and other Northern European nations viewed as dirty Russian money from Cyprus’s bloated banks. Instead, it has pulled Russia even deeper into Europe’s financial system by giving its plutocrats majority ownership, at least on paper, of the Bank of Cyprus, the country’s oldest, biggest and most important financial institution. 'Whoever controls the Bank of Cyprus controls the island,' said Andreas Marangos, a Limassol lawyer." Continue reading →

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Debt of One Quadrillion Yen? Not a Problem

"Haruhiko Kuroda doesn’t wear a wizard’s hat when he arrives at Bank of Japan headquarters each morning. Kuroda has done something truly supernatural in his five months as governor of the central bank. The more yen he conjures up to produce inflation, the more he mesmerizes markets. Yet a week after Japan’s IOUs reached the 1 quadrillion yen ($10.28 trillion) mark, yields have actually declined. What is Kuroda’s secret? The first is what economists call 'financial repression' -- essentially transferring money via monetary policy from citizens to the government. The second is outright monetization of public debt." Continue reading →

Continue ReadingDebt of One Quadrillion Yen? Not a Problem

Fund manager Ned Goodman ditches bank stocks for gold

"Ned Goodman, founder and chief executive officer of holding company Dundee Corp., shed the last of his bank shares after forecasting global inflation will make investments such as gold stocks and organic beef more rewarding. Goodman, who oversees about C$10 billion ($9.6 billion) for Dundee and its investments in real estate, precious metals, energy and infrastructure, sold the last of the company’s Bank of Nova Scotia shares earlier this quarter. With the U.S. Federal Reserve and other central banks printing money, it’s only a matter of time before currencies lose value and inflation rises, Goodman said." Continue reading →

Continue ReadingFund manager Ned Goodman ditches bank stocks for gold

Treasury chief says U.S. again perilously close to breaching the debt ceiling

"Treasury Secretary Jacob Lew urged Congress on Thursday to raise the US borrowing ceiling, warning that not doing so could jeopardize Washington’s creditworthiness and raise fears of a default. With the US closing on the point where spending will surpass available funds, Lew said it was crucial for Congress to raise the debt cap as soon as it comes back into session at the beginning of September. Failure to raise the ceiling would force cuts to many parts of the government, including the military and social security benefit payouts, and 'have disastrous effects for our nation,' Lew told an audience in Mountain View, California." Continue reading →

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Bond Funds Lose $30.3 Billion in August in Big ‘Shift’

"The withdrawals for the month through Aug. 19 are already the third-highest on record, following $69.1 billion of withdrawals in June and $42 billion in October 2008, according to a report dated yesterday by TrimTabs Investment Research in Sausalito, California. Bond funds have suffered $4 billion in redemptions this year, on pace for the biggest withdrawals since investors pulled $7 billion in 2004. The prospect of losses in the fixed-income market and rising rates have spurred investors to retreat after pouring $1.2 trillion into bond mutual funds and ETFs from 2009 through 2012." Continue reading →

Continue ReadingBond Funds Lose $30.3 Billion in August in Big ‘Shift’

Bitcoin’s Washington problem

"On paper, the popular virtual currency Bitcoin is the type of entity that traditionally would hire a powerful K Street lobbying firm to protect its interests in Washington, especially in the cutthroat world of financial regulations. But Bitcoin doesn’t exist on paper. With no public founder or organization behind it, Bitcoin isn’t in a strong position to defend itself from government scrutiny or lobby Congress on critical issues including privacy. As a fully decentralized network, the closest thing Bitcoin has to formal representatives are exchanges that facilitate the buying and selling of Bitcoins against other currency, and trade associations that represent them." Continue reading →

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Kim Jong Un woos defectors: Come home. We won’t kill you … promise

"North Korean leader Kim Jong-un is taking a new approach to defectors who have fled his impoverished and repressive state, promising they will not be harmed if they come home, and even offering cash rewards, according to some in the exile community. That’s in sharp contrast to the approach taken by Kim’s father, who during nearly 20 years in power hid the issue and severely punished the families of those who defected, fearing they would undermine the state with their tales of the prosperous South. Exactly why Kim has taken a different view of defectors is unclear." Continue reading →

Continue ReadingKim Jong Un woos defectors: Come home. We won’t kill you … promise

Venezuela will install 30,000 surveillance cameras

"Venezuela is installing 30,000 surveillance cameras to crack down on rampant crime, officials said Wednesday. Most of the Chinese-made equipment will be put up in the capital Caracas. Some is already in place in a municipality within the Caracas metropolitan area as part of a pilot program. The equipment, manufactured by Chinese company CEIEC, will be delivered to Venezuela under cooperation agreements agreed by Caracas and Beijing. The information picked up by the devices will be made available to police for use in crime probes." Continue reading →

Continue ReadingVenezuela will install 30,000 surveillance cameras