Loans and Finance

Loans and Finance


News and information about loans, money, debt, finance and business issues.

Thursday, August 27, 2015

Ukrainian Finance Ministry Mistaken/Lying

Ukraine claims that it has reached a deal with its creditors.

According to Bloomberg:
"Finance Minister Natalie Jaresko reached an accord with a Franklin Templeton-led creditor committee that includes a 20 percent writedown to the face value of about $18 billion of Eurobonds, the first of which matures in less than a month.

The agreement also pushes back redemption dates by four years and sets interest at 7.75 percent on all maturities, according to an e-mailed statement from the Finance Ministry and the creditor committee.

Russia is being offered the same terms as private bondholders."
All very nice and dandy, except that Russia (its main creditor) has in fact rejected the deal.
The Ukrainian Finance Ministry is either speaking in error, or it is lying.

Wednesday, August 26, 2015

Greece Continues To Fail To Collect Taxes

Nick Leeson Distances Himself From China

Guess Who's Not Coming To Dinner?

Tuesday, August 25, 2015

China Cuts Rates

Chinese one year lending and deposit rates just cut by 25 bps.

China Continues To Crash

China continues to seek the bottom.

Meanwhile the Chinese government, powerless to stop the rout, is seeking to blame everything from "malicious short selling" to "underground banks".

The fact is, as I have noted many times before, markets are not rational they are governed by a herd mentality powered by greed and fear.

Monday, August 24, 2015

Zerohedge Crashes

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Dow Drops 1,000

A real DOWner today!

All Major US Equity Indicators Halted

NASDAQ Halted Three Times

Three times the charm!

China's Black Monday

Chinese stocks have plunged 8.5% today, sending global markets into a tailspin.

The fall is despite the fact that the People’s Bank of China was gearing up to inject some stimulus, likely by reducing the level reserves banks are required to hold and thus unleashing more liquidity, and the fact that the Chinese pension fund is to be allowed to invest up to 30% of its funds in the market.

China is learning, what every other government in the world knows (or has learned through bitter experience), namely that the markets cannot be tamed by grand one off gestures when they are in panic mode.

Friday, August 21, 2015

Greece Isn't Fixed!

Barely two days ago Merkel said that the "uncertainty" over Greece had ended.

Newsflash for Merkel:

The "uncertainty" has returned with a bang!

Thursday, August 20, 2015

Greece's Circular Funding

Greece paid Euro3.2BN to its creditors yesterday, using money that its creditors lent it to pay them back.

Meanwhile Energy Minister Panos Skourletis said:
"The political landscape must clear up. We need to know whether the government has or does not have a majority."
I wonder when the Greek people will wake up to the fact that the bailout funds are not for them, but for their creditors?

Wednesday, August 19, 2015

Germany Says Ja!

Greek Bank Deposit Bail Ins Coming In 2016

As Greek bank depositors work out where to hide their cash, before their deposits are "bailed in" next year, a solution of sorts is being worked on.

Bitcoin ATMs are being installed in Greece.

This is marked improvement on the current barter system being used by many to get around the capital controls, given that cheese is not really a terribly easy "currency" to convert!