The German banks Deutshe Bank and Commerzbank along with the Italian bank Banca Monte dei Paschi di Siena crashed after the global financial crisis in 2008 despite an enormous spike in European Central Bank asset purchases.
On the other hand, US banks benefited from The Federal Reserve’s massive balance sheet expansion, at least until Covid hit in 2020.
Deutsche Bank’s 6% CoCo (Contingent Convertible) bond was issued in 2014. Contingent convertibles work in a fashion similar to traditional convertible bonds. They have a specific strike price that once breached, can convert the bond into equity or stock. The primary investors for CoCos are individual investors in Europe and Asia and private banks.
I have been saying this for several years, so I am glad the Bloomberg News finally acknowledge it.
(Bloomberg) — The U.S. housing market, which has been a bright spot in the pandemic-battered economy, is running out of fuel.
With buyers eager to take advantage of low mortgage rates, the inventory of homes to buy is scarce. That’s driving up prices and threatening to derail the boom by pushing homeownership out of reach for many Americans.
For homebuilders, the huge demand for housing is an opportunity to crank up construction and solve the inventory crisis. Instead, some are deliberately slowing things down as they grapple with supply shortages, surging lumber costs and intense competition for labor and land.
Yes, available new home sales have generally increased since the great slump of 2012, but are slumping again. Note the recovery in new homes for sale when The Fed expanded their balance sheet in 2012-2013 with QE3.
Spot gold fell more than 3% Monday to its lowest intraday level since August, breaching its lower Bollinger band for the first time since June. That suggests its drop may have been too much, too soon, and that a reversion to the mean lies ahead.
Ichimoku cloud? The Ichimoku Cloud, also known as Ichimoku Kinko Hyo, is a versatile indicator that defines support and resistance, identifies trend direction, gauges momentum and provides trading signals. Ichimoku Kinko Hyo translates into “one look equilibrium chart”.
Elliott waves? The Elliott Wave Theory was developed by Ralph Nelson Elliott to describe price movements in financial markets, in which he observed and identified recurring, fractal wave patterns. Waves can be identified in stock price movements and in consumer behavior. Investors trying to profit from a market trend could be described as “riding a wave.”
Banks are being investigated (a new investigation by the International Consortium of Investigative Journalists says JPMorgan, Deutsche Bank AG and HSBC Holdings Plc were among the global banks who “kept profiting from powerful and dangerous players” in the past two decades even after the U.S. imposed penalties on these financial institutions) and Covid deaths hit 200K (not 200 MILLION like Joe Biden stated).