In a world consumed by greed and plagued by financial chaos, we introduce you to Banktopia, a twisted realm where insatiable desires overshadow morality and reason for wealth. Journey with us through
Thank you for writing in a easy to understand language. This helps me a lot, as I am starting to learn about the banking sector.
One question, if I may: In your opinion what determined the European banks to buy negative bonds? I ask this in the following context: I expect the decision makers were not dumb and they suspected/knew buying such bonds would make their life harder down the line.
Consolidation. Devaluation Nationalization. Devaluation. Control. Devaluation. CBDC. Devaluation. Total control.
I’ve been a preferred client at a regional D-SIB for 25 years. Same banker for 25 years. He tells me that, with the exception of the G-SIBs and the properly ESG/Woke D-SIBs (who will be favored to survive), a CBDC would ultimately be the end of 1000s of banks. Not immediately, but over time. Maybe not much time.
I don’t think we have to wonder about the agenda. This is a created crisis. Just like most of the other. Hegelian Dialectic to the moon.
How many more times can they paper over previous mistakes? at some point, I suspect the problems will become so large that even if they go to their playbook, investors will choose to ignore them and find something else to do with their funds. perhaps Apple will be the new risk-free asset, or MSFT. Gold seems likely to take on a much bigger role and BTC has already been rocking.
Banks are by their nature heavily leveraged, borrowing ultra short (demand deposits) and lending long (business loans, Treasuries, MBS, etc) which is a recipe for disaster in a rising interest rate environment, hence the long history of bank collapse. Central banks having pushed short rates to zero have distorting the banking system, and in fact the entire global financial system, to its end point. Now the world, and you, face one of just two outcomes; central bank attempts to reverse extreme accommodation, which is already failing, or paper over oceans of mispriced financial paper with new fiat currency conjured through nothing more than accounting entries which will at some point inevitably lead to a collapse in confidence in fiat (all currencies) and consequent severe price inflation. The avoid hangover stay drunk charade is over. Tangible assets offer refuge for those who act in a timely fashion.
I had to leave the banking sector two years ago. It was a European bank. But it wasn’t necessarily the rabid greed you so eloquently describe that caused me to have enough. It was an elitist vanity that combined more gradual enrichment with perceived intellectual prestige and, latterly, a genuine belief that they were saving the world (ESG, renewable investments, etc).
I saw first hand how incentives can be constructed to make the path of least resistance irresistibly alluring, cloaking the potentially vulgar wealth accumulation with felt-green robe of virtue.
The best thing I've read all week xxx
Thank you for writing in a easy to understand language. This helps me a lot, as I am starting to learn about the banking sector.
One question, if I may: In your opinion what determined the European banks to buy negative bonds? I ask this in the following context: I expect the decision makers were not dumb and they suspected/knew buying such bonds would make their life harder down the line.
Great work. Really enjoying your efforts.
Consolidation. Devaluation Nationalization. Devaluation. Control. Devaluation. CBDC. Devaluation. Total control.
I’ve been a preferred client at a regional D-SIB for 25 years. Same banker for 25 years. He tells me that, with the exception of the G-SIBs and the properly ESG/Woke D-SIBs (who will be favored to survive), a CBDC would ultimately be the end of 1000s of banks. Not immediately, but over time. Maybe not much time.
I don’t think we have to wonder about the agenda. This is a created crisis. Just like most of the other. Hegelian Dialectic to the moon.
How many more times can they paper over previous mistakes? at some point, I suspect the problems will become so large that even if they go to their playbook, investors will choose to ignore them and find something else to do with their funds. perhaps Apple will be the new risk-free asset, or MSFT. Gold seems likely to take on a much bigger role and BTC has already been rocking.
Banks are by their nature heavily leveraged, borrowing ultra short (demand deposits) and lending long (business loans, Treasuries, MBS, etc) which is a recipe for disaster in a rising interest rate environment, hence the long history of bank collapse. Central banks having pushed short rates to zero have distorting the banking system, and in fact the entire global financial system, to its end point. Now the world, and you, face one of just two outcomes; central bank attempts to reverse extreme accommodation, which is already failing, or paper over oceans of mispriced financial paper with new fiat currency conjured through nothing more than accounting entries which will at some point inevitably lead to a collapse in confidence in fiat (all currencies) and consequent severe price inflation. The avoid hangover stay drunk charade is over. Tangible assets offer refuge for those who act in a timely fashion.
I had to leave the banking sector two years ago. It was a European bank. But it wasn’t necessarily the rabid greed you so eloquently describe that caused me to have enough. It was an elitist vanity that combined more gradual enrichment with perceived intellectual prestige and, latterly, a genuine belief that they were saving the world (ESG, renewable investments, etc).
I saw first hand how incentives can be constructed to make the path of least resistance irresistibly alluring, cloaking the potentially vulgar wealth accumulation with felt-green robe of virtue.
Monetary and carbon credits.
Potter's not selling, he's buying!