The coming credit crisis in China is no secret. China has $1 trillion or more in bad debts waiting to explode. These bad debts permeate the economy. Some are incurred by Chinese Provincial authorities trying to get around spending limitations imposed by Beijing. Some are straight commercial loans on bank balance sheets. Some are
Warnings about an imminent collapse of developed economy stock markets, especially the U.S. markets, are everywhere. Whether you use Shiller’s CAPE ratio, Buffett’s preferred market-cap-to-GDP ratio, or traditional P/E ratios, markets seem overpriced and ready to fall. Of course, that does not mean they will fall anytime soon. As we saw in the dot.com bubble of
Every financial market is vulnerable to some sort of financial fraud. Most of the regulatory systems in place today were designed as a policy response to abuse or fraud. FDIC bank insurance was a response to bank runs and insolvent banks of the 1930s and earlier. The SEC was a response to stock manipulations
The bad news just keeps coming for the bitcoin ecosphere. This article reports that China has ordered its banks to stop providing financial services for any cryptocurrency related transactions. This is important because customers wishing to buy or sell cryptocurrencies have to start by funding their crypto accounts from conventional banking sources. Also, when customers
