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Sadly, the end of easy money will not be as much fun as its beginning. Creating trillions of dollars from nothing and then taking them back does have consequences many of which we still have not seen   Central bankers are acting like over indulgent parents. They decry the over...

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QE has not necessarily shown major benefits other than inflating stock markets. Injecting more money into economies that certainly do not need it is easy, but eventually those economies, like other addicts, will collapse as well   The word stimulus is magic for markets. Just the word...

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It depends on two crucial questions: the effect of tighter monetary policy in the US and whether the Chinese real estate slowdown reverses or accelerates   Since the end of August, the American 10-year treasury yields have risen 11% to 2.60% from 2.33% last Friday. All of this is...

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In the US, UK and Japan quantitative easing is straight forward. The central banks just add a couple of extra zeros to their balance sheets and then go on a spending spree buying the country’s debt. If the ECB wanted to do quantitative easing it would have to buy the debt of its members. This...

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So the problems are over and Europe is on the road to recovery. Right? Well, maybe not. European sovereign debt is so large that they have to grow to keep their debt stable or impose even harsher austerity measures   Things looked bad. Yields of Spanish and Italian bonds were soaring....

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Governments across the world have rewarded the wealthiest individuals who were to a great extent responsible for their financial debacle at state expense. There are far better uses for scarce government funds, than to underwrite excessive risk   In February 2013, the then Federal...

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Moneylife Digital Team 14 May 2014
China’s 'Big Four' banks, which include ICBC, have long been criticised for high charges, poor service and their reluctance to lend to private companies A Chinese brokerage has fined its chairman two months pay — nearly one million yuan ($161,000) — after he publicly blasted the...

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Western markets are not dominated by Chinese brands. It is the Chinese market that is being dominated by foreign brands. Even in surveys, local Chinese brands get criticized for poor quality and engineering and lacks the trust When China started to make cars, a chill went through...

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Shambo Dey 06 May 2014
Since the 2008 crisis, JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley have collectively become 37%, while 1,400 smaller banks have gone out of business. Is the problem of 'too big to fail'  now much worse than in the past? Human beings often...

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The slow down in Chinese realty is not critical at least in first tier cities. But many smaller cities are severely overbuilt and a correction is likely. And any air coming out of a Chinese property bubble will have an impact far beyond the courty Real estate is the probably the most...

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In a world of weak demand and oversavings, the last thing we need are policies that encourage income inequality. The people who benefit most from income inequality will use their political power to continue the process. It will eventually will hurt them as well I live in a small city in...

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Central banks remained focussed on consolidation, but encouraging smaller banks may be the way to push economic growth The International Monetary Fund (IMF) gave out some good news this week. They told us that the crisis was over. Well sort of. The Fund predicted that the strong economic...

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Default of one small solar company or one medium sized steel mill does not foretell an immediate collapse of the Chinese bond market. But it is a very clear warning of its direction It finally happened. A Chinese domestic bond has defaulted. It was the first default since the Chinese...

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Several countries need to deal with bad debt or NPA problem as quickly as possible. Opening markets to the most experienced, often-foreign, firms to purchase assets could be one of the solutions. Can anyone take this politically unpalatable decision In the late 1980s it was estimated...

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Are the US and other developed countries responsible for the emerging market issues? Or in the alternative, are the all the emerging market troubles home grown? It will be interesting to see who the developed countries blame when the problems they created for emerging markets return home

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The dramatic reversal of the Japanese market’s fortunes in past month might be a preview of things to come and an abject lesson in the dangers of monetary experiments Since the end of December, the Japanese market has been falling like a rock. Since it reached its high late last year, it...

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India needs to allow Iran to open accounts in banks other than UCO Bank and from all the major port cities, which would result in increased trade between the two countries It may be recalled that Iran signed on 24 November 2013 an accord with US and European Union (world powers, really),...

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Throwing good money after bad is never a good idea, but if you put too much stress on an overleveraged system, you risk a systematic impact. Either way, the Chinese government, like other governments, will reap what they have sown. The only question is when? Default. It is an ugly word....

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The real problem with present day peer-to-peer or P2P lending is, several times, lenders are clueless about financial health of the borrower. This is because the information used by the P2P lenders comes from the borrowers and can be inaccurate or intentionally false Peer-to-peer (P2P)...

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If details can be worked out, there could be substantial trade with Pakistan via the land border at Wagah, instead of indirect trade through UAE Just about twenty years ago, in 1996, India extended the ‘Most Favoured Nation’ (MFN) status to Pakistan, and it was expected that they would...

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