Submitted by John Rubino via DollarCollapse.com,
For what seems like decades, people have been warning that the next time some over-leveraged corner of the financial system implodes, bank and brokerage accounts will be either confiscated by desperate governments or lost during the resulting chaos.
Here, from 2012, is a representative warning from gold mining eminence grise Jim Sinclair:
My Dear Extended Family,
Submitted by Peter Conti-Brown via The Yale Journal on Regulation,
In a mostly quiet Wednesday session, Asian stocks rose overnight along with European bourses, which were led higher by miners after Rio Tinto posted higher profits for the first time in three years and a bigger-than-expected dividend, while India’s Sensex extended declines after the central bank unexpectedly left rates unchanged. US futures were little changed as oil continued to fall after API reported a huge inventory build in the last week.
And, it will probably surprise no one, it has to do with president Donald Trump.
In a report by Credit Suisse analyst Lori Calvasina, to better understand the short term performance trends seen in the aftermath of the US Presidential election, and which trades may be most sensitive to shifting winds in Washington going forward, the Swiss bank analyzed how a handful of major macro indicators, stock market indices, styles, themes, sectors, and industry groups have been trading relative to trends in Trump’s favorability since the election, as tracked by Real Clear Politics.
So what do you do if you're a European banking regulator faced with the task of maintaining a safe, sustainable financial system amid a concerning growth in bank leverage. Well, if you said sell down risk assets then you're just being silly or completely ignoring your implicit obligation to engineer higher banking profitability at all costs.