Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By silveristhenew (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

How many of our banks are real life zombies?

% of readers think this story is Fact. Add your two cents.


Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

investmentwatchblog.com / by Shaun Richards / February 15th, 2016

As we travel through the credit crunch era we have the fear that we will repeat the experience of Japan and find ourselves experiencing what has become called the “lost decade” which began in the early 1990s and is still ongoing. We have seen a reminder of that only this morning as the Japanese economy shrunk again (by 1.4% annualised as they measure it) in the last quarter of 2014.This provides the link to today’s topic which is the banks and what we have failed to do. Back in the day when I was knee-high to a grasshopper in financial market terms I worked in Tokyo for a time and continued to work on Japanese issues when I returned to the UK. At that time the health of the Japanese banks was on everyone’s minds and as the Nikkei 225 equity index fell we were told that they were fine at the following levels. It started at 26,000 the 24,000 then 22,000 then 20,000 then 18,000 then 16,000 and so on.

The obvious point is that if there were serious concerns about banking health at an index level of 26,000 then they had to be completely underwater by 20,000. Yet the Japanese establishment preferred to look the other way and in banking terms might have contributed some ideas to the Cranberries.

Zombie, zombie, zombie

The consequences of this were known before the credit crunch as this paper of the Ideas section of the St. Louis Federal Reserve Bank  from 2006 confirms.

We start with the well-known observation that most large Japanese banks were only able to comply with capital standards because regulators were lax in their inspections. To facilitate this forbearance the banks often engaged in sham loan restructurings that kept credit flowing to otherwise insolvent borrowers (that we call zombies). Thus, the normal competitive outcome whereby the zombies would shed workers and lose market share was thwarted.

Thus the one thing we needed to avoid in banking terms was to be singing along with The Vapors.

Turning Japanese I think I’m turning Japanese I really think so

READ MORE

The post How many of our banks are real life zombies? appeared first on Silver For The People.

Thanks to BrotherJohnF


Source: http://silveristhenew.com/2016/02/15/how-many-of-our-banks-are-real-life-zombies/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.


LION'S MANE PRODUCT


Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules


Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.



Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.


Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.