Forex Blog - Got a Beef with US Bank Executives...How About Buying Some US Treasuries?
Got a Beef with US Bank
Executives...How About Buying Some US Treasuries?
No I donâ€™t believe the US government can run banks or auto companies better
than privately-incentivized skilled executives. But not all executives
are created equalâ€¦some have proven to be worse at running banks and auto companies
than the governmentâ€¦if this were not true we would not have seen anything like
what we did in the last 18 months.
And even skilled bank
executives like Dimon and Blankfein seem to have forgotten that without the
government intervention, not even the top of the class would have survived the
bank panic of 2008. Using FDIC insurance on debt issuance, receiving full
settlement on counterparty liabilities with AIG, gaining access to the discount
window for investment banks, taking all sorts of collateral for Fed funds,
insuring money market liquidity, underwriting commercial paper, supporting
mortgage market with massive liquidity and making $700bln in federal money
available to banks to raise capital in exchange for preferred stock kept even
Dimon and Blankfein employed. With TARP funds about to be repaid some of
these banks executives are back to their old arrogant waysâ€¦we did US Treasury a
favor taking TARP, buying Bear and Merrill and want as little government say
over our business as possible. Good riddance Fed and Treasury.
What a bunch of
ingrates. They seem to have forgotten the forest for the trees. The
problem is not government overreach but private sector malfeasance.
Private sector (banks and shadow banks) blew it. And all the warts of
government overreach are part of the therapy for curing the illnessâ€¦like a
cancer patient cured by chemotherapy turning on his or her oncologist for loss
of hair and a compromised immune system.
So this brings me to the
latest bank head peeve. Why are US banks not buying US Treasuries with record cash
balances and record low cost of overnight money? I am not a banker, but I
would guess that a 30year US bond is counted as Tier 1 capital just as a cash
deposit at the Fed is counted as Tier 1 capital. In Japan the banks bought JGBâ€™s until the cows came
I think markets learned this
week that large activist foreign central banks are still accumulating US
Treasuries and are not dumping the dollar for gold or euros in any meaningful
way (some SWFs and smaller central banks however may well be).
Maybe the Fed and Treasury
never sent the memo. If I had to guess, UST and Fed are walking on
egg shells with the banks after all the blow back on compensation, TARP and
TARP strings. Like spoiled children. Again I think bankers should
run banks, but bad bankers were in charge of banks (and allowed to go to town
by bad bank regulators) and they pushed the peddle to the metal. It is
US banks may be waiting for
even higher yields (or memo from regulators) before doing their part of the
public-private cure. If the US authorities and their partners running the banks
canâ€™t keep US rates from rising, well the prospects for a recovery are dim,
very dim. Real estate investment and valuations will resume a steep rate
of decline and foreclosures will rise even more rapidly. Remember the
mantra on recovery in 2008 â€“ canâ€™t solve the economic and banking crisis until
the real estate (residential and commercial) market stabilizes and starts to improve.
Mantra of 2009 is stock market rally (built on hope) is necessary and
sufficient condition for a recovery and end to the financial crisis.
Just because stocks are up
and bank stocks are up a lot, should not put Treasury and Fed officials on
their back feet when it comes to temporarily setting the rules of the game for
the banks. Unfortunately, the Treasury forgot to set a minimum of Tier 1
capital to be held in US government debt as one of the prerequisites for
exiting TARP. And this could mean a W-shaped recovery at best or an
L-shaped lost decade at worst.
Forex Trading News
Daily Forex Market News Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Forex News Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Actionable trading levels delivered to YOUR charts in real-time.
Mon 19 Feb 2018
00:00 CN, US- Holiday Tue 20 Feb 2018
00:00 CN- Holiday A 10:00 US- ZEW Survey Wed 21 Feb 2018
00:00 CN- Holiday A All Day flash PMIs A 15:00 US- Existing Homes Sales A 15:30 US- EIA Crude AA 19:00 US- Fed Meeting Minutes Thu 22 Feb 2018 A 09:00 DE- IFO Survey A 09:30 GB- GDP AA 13:30 CA- Retail Sales A 13:30 US- Weekly Jobless Fri 23 Feb 2018 A 10:00 EZ- Final HICP AA 13:30 CA- CPI
John M. Bland, MBA co-founding Partner, Global-View.com
Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.
The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.
The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.
Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.
The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.
Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.
Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.
Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.