Moody's Cuts U.S. Banking System To Negative

[Ringo]

What takes other Countries decades to centuries to pile up a body count, socialism does in record time and it's usually spearheaded by one man. But enough of your whataboutism diversion tactics.

You see, everything you were taught at school about the USSR and Russia is a lie.
And then you were taught by the Hollywood movies and Fake News, which is also stinking, lying shit.
This crap recycled in your head is what makes your fabrications about Russia, the USSR and Lenin stand out.
I'll give you a visual example, just one, although there are thousands of them.
It's a shot from the recent TV series "The Americans". The picture is of a Soviet colonel.
A person with half a brain could look on the Internet and find out what a soviet officer's uniform looks like, but why? The "creators" take their information from the same place, where their ideological component comes from - their ass. They stick their finger in there, take it out, suck it, and give out information under the influence.

And you swallow this idiotic picture and along with it comes the "information" for idiots already trained since childhood.

 

[ThunderKiss1965]

You see, everything you were taught at school about the USSR and Russia is a lie.
And then you were taught by the Hollywood movies and Fake News, which is also stinking, lying shit.
This crap recycled in your head is what makes your fabrications about Russia, the USSR and Lenin stand out.
I'll give you a visual example, just one, although there are thousands of them.
It's a shot from the recent TV series "The Americans". The picture is of a Soviet colonel.
A person with half a brain could look on the Internet and find out what a soviet officer's uniform looks like, but why? The "creators" take their information from the same place, where their ideological component comes from - their ass. They stick their finger in there, take it out, suck it, and give out information under the influence.

And you swallow this idiotic picture and along with it comes the "information" for idiots already trained since childhood.

Never watched The Americans and it's a goddamn drama TV show not a history documentary. Read the Black Book of Communism or actually listen to people who lived through it.

Over 100 million deaths and growing. Socialism is the most murderous socioeconomic system in history. And we have loons like yourself who are either smart and spewing misinformation or your a moron who got suckered into spreading it either way Mao, Stalin, and all the other socialist murders would be proud.

 

[ThunderKiss1965]

The FEd spent a long time handing out interest free money to big companies and speculators. I guess you haven't read the news in 20 years.

So its the Governments fault but you just want class warfare and blaming the rich.

 

[Ringo]

The world's money markets these days are like those hopeless addicts, who need stronger and stronger doses of "good" (fake) news and free dough to feel their former euphoria for a moment.
But only the withdrawals are getting worse, and debt collectors from the future are approaching the house.

 

[multivita-man]

All eyes are on Switzerland right now. They've got about 12-24 hours to complete a complicated Swiss government-brokered deal between the countries two largest banks, UBS and Credit Suisse.

There's been an offer put forward for UBS to buy CS for about $1 billion; however, CS's largest investor(s) has so far rejected because -- wait for it -- they think the offer is too low. This comes after CS has reported lost about $10 billion in deposits within the last week.

Worth noting that CS is a significant player in global markets and financial centers, including the United States. If CS looks like it's about to collapse, this could easily spark a contagion event. This is some serious shit. Hopefully it gets worked out. Link to the story below.

Credit Suisse Said to Push Back Against UBS’s $1 Billion Offer

UBS Group AG is offering to buy Credit Suisse Group AG for as much as $1 billion, a deal that the troubled Swiss firm is pushing back on with backing from its biggest shareholder.

www.bloomberg.com

 

[DudleySmith]

So its the Governments fault but you just want class warfare and blaming the rich.

Your spin is just stupid. You want to blow some rich people why hang out here? You'll just end up with Tommytaint or moonglow.

 

[multivita-man]

Now UBS doubles the offer to $2 billion (probably at the urging of the Swiss gov't).

UBS agrees to buy Credit Suisse for more than $2 billion, Financial Times reports

Authorities have been scrambling to rescue the bank, among the world's largest wealth managers, before financial markets open. Its failure would ripple throughout the entire financial system.

www.reuters.com

Something to keep in mind, and the individuals pushing for higher CS valuation, are the largest CS investors:

Significant shareholders

An overview of shareholders whose holdings in Credit Suisse Group AG are above 3 percent of the voting rights.

www.credit-suisse.com

* Saudi National Bank
* Qatar Holding LLC
* Olayan Group
* BlackRock, Inc

The three largest shareholders, who comprise almost 20% of CS, are from OPEC countries.

 

[Thunk]

There's been an offer put forward for UBS to buy CS for about $1 billion; however, CS's largest investor(s) has so far rejected because -- wait for it -- they think the offer is too low.

They'll get NOTHING and LIKE IT!

 

[Thunk]

Sorry...I couldn't resist.

The situation is so dire if I don't laugh I will shit myself.

 

[multivita-man]

Sorry...I couldn't resist.

The situation is so dire if I don't laugh I will shit myself.

Deal done - with significant assurances from the Swiss goverment.

UBS buys Credit Suisse for $3.2 billion as regulators look to shore up the global banking system

The $3.2 billion rescue deal came after a weekend of crunch talks, with the chairman of UBS describing it as "absolutely essential to ... global finance."

www.cnbc.com

UBS agreed to buy its embattled rival Credit Suisse with Swiss regulators playing a key part in the deal as governments looked to stem a contagion that threatening the global banking system.

“With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation,” read a statement from the Swiss National Bank, which pledged a loan of up to 100 billion ($108 billion) Swiss francs to support the combination.

Still not sure this calms markets entirely but it's better than the alternative, which is no deal and full-on panic.

 

[multivita-man]

The good news is, CS was bought by UBS.

The bad news is, $17 billion in CS bonds are POOF! Gone.

Credit Suisse’s $17 Billion of Risky Bonds Are Now Worthless

About 16 billion Swiss francs ($17.3 billion) of Credit Suisse Group AG bonds have become worthless after a takeover of the firm by rival UBS Group AG.

www.bloomberg.com

Someone had to lose...looks like it's debt investors. Will be interesting (perhaps scary) to see who's exposed.

 

[DudleySmith]

UBS itself had to be bailed out in the 2008 crash; it collapsed before the American traders did.

Needed another bailout in 2011.

Timeline: UBS investment bank mishaps and upheavals

Swiss lender UBS on Thursday said a trader had lost around $2 billion from unauthorized trades, warning it might post a loss in the third quarter as it struggles to rebuild credibility after years of crises.

www.reuters.com

 

[multivita-man]

UBS itself had to be bailed out in the 2008 crash; it collapsed before the American traders did.

The next crash will probably the mother of all crashes. 2008 almost was - would have been had Congress and the Fed waited another 48 hours or so to act.

The finance sector now dominates the American and global economy, and they have so much political power that Congress and other governments are their slaves.

 

[Thunk]

The bad news is, $17 billion in CS bonds are POOF! Gone.

Betchya several pension funds took it on the chin. It always seems to be pension funds for some reason.

 

[Circe]

Moody's cuts outlook on U.S. banking system to negative, citing 'rapidly deteriorating operating environment'

Moody's Investors Service cut its view on the entire banking system to negative from stable.

The big three rating firm cited a "'rapidly deteriorating operating environment" despite regulators' efforts to shore up the industry.


Moody's cuts outlook on U.S. banking system to negative, citing 'rapidly deteriorating operating environment'

View attachment 765809

I figured this was a joke; it's from last Tuesday but I never saw reference to it on the Wall Street Journal or Bloomberg's.
The business news may be trying to keep low-key about it to reduce concern and contagion.

 

[Thunk]

So what did UBS pay for CS?

 

[Thunk]

The business news may be trying to keep low-key about it to reduce concern and contagion.

Another thing they're trying to keep "low key" is the price of gold.

They are telling us the real spot price...but the ups & downs are skewed.

If gold is up $40 it will say it's up $15 (even though the spot price is correct).

I've taken to writing down the price of gold each morning and at market close...so I can compare for myself.

Market close on friday spot price was $1,998

Tomorrow morning it will probably say gold = $2,250 (up $30)

 

[Circe]

Another thing they're trying to keep "low key" is the price of gold.

They are telling us the real spot price...but the ups & downs are skewed.

If gold is up $40 it will say it's up $15 (even though the spot price is correct).

I've taken to writing down the price of gold each morning and at market close...so I can compare for myself.

Market close on friday spot price was $1,998

Tomorrow morning it will probably say gold = $2,250 (up $30)

Should be quite an interesting week. We're down in the 31 thousands Dow already.

I'll watch gold for your tip; interesting.

 

[Thunk]

Looks like UBS credit default swaps are still rising.

This could still have an ugly outcome.

Brace for possible impact.

 

[Captain Caveman]

View attachment 766562

"The Argument​

"A core tenant of the theory of capitalism and a free market is competition.

"However, in reality, capitalism eliminates competition by allowing monopolies. Monopolies form by crushing small companies or through mergers and acquisitions.

"This decreases competition and harms consumers' rights by letting those few corporations set price and quality standards.[1]

"They also have excessive political influence through campaign donations, lobbying, and the propaganda they can create."

Capitalism is ineffective and unstable - Encyclopedia of Opinion.

If you have a company, you are not forced to merge or sell. Company owners wish to do so because of the money, so they achieved their goal by creating a company and cashing it in. Something you can't do under Socialism, you have to remain poor and share the misery.