“Fortress balance sheets?”… “It’s different this time”… “Greatest economy ever.” If all of that is true, then why are the stocks of the most systemically important banks in the world collapsing? And the banking collapse is leading global stocks lower – probably not coincidentally as global central bank balance sheets contract… As The Economic Collapse blog’s Read More…
Tag: financial crisis
Spending Our Way Out Of A Fiscal Crisis
According to financial writer Simon Black, the federal government is spending approximately 52,000 dollars per second. This, not last year’s tax cuts, is the reason why the national debt has reached a record 21 trillion dollars, which is more than America’s gross domestic product (GDP). Another ominous sign is that this year both Social Security Read More…
Defusing China’s “Nuclear Option” Myth
Tariffs, counter-tariffs and headlines about trade wars are flowing like wine as the long-anticipated Trump campaign against China is finally shaping up. Given that futures are tumbling, the US trade deficit has just hit a decade low, and, oh yeah, we haven’t seen market volatility like this since the crash of ’87 you might think we have enough ominous financial storm clouds to Read More…
China Downgrades US Credit Rating From A- To BBB+, Warns US Insolvency Would “Detonate Next Crisis”
In its latest reminder that China is a (for now) happy holder of some $1.2 trillion in US Treasuries, Chinese credit rating agency Dagong downgraded US sovereign ratings from A- to BBB+ overnight, citing “deficiencies in US political ecology” and tax cuts that “directly reduce the federal government’s sources of debt repayment” weakening the base Read More…
Iceland, Where Bad Bankers Go to Jail, Finds Nine Guilty in Historic Case
Since its 2008 crisis, Iceland has received recognition for its strategy of prosecuting executives, letting banks go bust, and focusing on social welfare. Iceland, which became a gold standard for corporate accountability in the wake of its 2008-2011 financial crisis, has found nine bankers guilty for market manipulation in one of the biggest cases of Read More…