Are the Damn Bankers Running Out of Collateral? Article List

I recommend you bookmark this page in order to preserve these articles in one place. Then follow what these articles are following, the collateral, in order to see the fate of the banks and the economies of the world. The drying up of sound collateral, with only risky collateral taking its place is a recipe for a financial crisis.

One wonders how long we will have this crisis of collateral. We know that the crisis of collateral is always the catalyst for banks no longer lending to each other, for a credit crisis to occur. This is the way it happens folks.

Will we get past the current crisis of collateral, or will the banks freeze up again, putting the world economy in jeopardy? We face deflationary, not inflationary, risks in this collateral squeeze environment.

One wonders how long this relentless chipping away of sound collateral will continue and what it will ultimately do to interbank lending. Failure of Interbank lending is the ultimate source of financial contagion and the onset of a credit crisis. Yet banksters are up to their old tricks, 1. hiding bad collateral, and 2. seeking more risky collateral. 

We even have the banks pawning off toxic collateral to the Fed, to the pension funds and probably, eventually, to the Treasury of the United States.  See Baghot's Rule.

We already have seen how the Fed will not be transferring expected payments to the treasury, because of likely losses on the Fed's balance sheet. So the sneaky way of getting around this would be for the Treasury to take on toxic loans to our taxpayer balance sheet. Then the Fed can get clean treasuries in return and take on more crappy bank loans, and may even be able to make the transfer payments to the Treasury like nothing shady ever happened! 

Here is a helpful collection of articles relating to bankers (sters) running out of collateral:

Primer on International Banking Collateral and Power

Uncertainty Over Collateral Upgrade Trades

The Financial System Is Running Out of Quality Collateral

Big Banks Hide Risk Transforming Collateral for Traders

Banks Tap Pension Funds for Liquidity (Good Collateral)
  
Ray Dalio on Spanish Collateral

ECB Collateral Soup Kitchen

Collateral Damage: Deutsche BAnk, Unsung Credit Risk, and The Story Behind the Ben_Artzi Claims

The Curious Case of Liquidity Traps and Missing Collateral-Part 1

The Curious Case of Liquidity Traps and Missing Collateral-Part 2 

Snapshots of Dysfunction in a Fiat Money World

When Interest Rates Turn Upside Down

The Strange World of Negative Interest Rates

Thanks to Japan We Know How Central Bankers Can Control Inflation

Interest Rates Will Stay Low in the Midst of Bad Bank Behavior and Paul Ryan's Mistake

We Face Derivative Collateral Deflation and ECB Banks Could Be the Losers

Gold and Low Interest Rates 

The above article, the Curious Case of Liquidity Traps asserts that the safe collateral cannot be created without central bank intervention. Yet central bank intervention pushes money out of the real economy and into the hands of the uber rich. If that is not sustainable, we will have banks hiding bad capital. And the Fed and central banks probably wink at that.And so they wink at the creation of financial bubbles, and housing bubbles.

Apparently the bankers and central bankers exist to either steal from MainStreet through QE (the creation of sound collateral) or through the absence of QE (through housing and financial bubbles and the creation of unsound collateral)! Or maybe the Fed will try to have both, QE and a housing bubble at the same time! This will give the appearance of stability, but with collateral shortages there could be a massive collateral crunch on the way, some say by 2016.


To me, these articles show that the banksters are back to their old tricks, hiding risk. Hiding risk is what made the last financial crisis. They even want to dump toxic assets which have no market and have a value that is anyone's guess on our pension funds like Calpers and on insurance companies. Are you kidding me? How can this fraud continue! 

 

 

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