Business

By EconMatters

Via Kevin Muir of The Macro Tourist blog,

The other day in the midst of an epic food-fight-rally in the stock market, a younger kid from my office wandered by and expressed his disbelief at the incessant bid. Shaking his head he asked me if I had ever seen something so insane.

Ahhh…. the joys of being young - everything is new.

I explained to him that I had indeed seen this movie play out before. A few times actually.

Confirming last week's report of an imminent share sale, on Sunday the biggest German lender announced it would raise €8 billion ($8.5 billion) in new capital through a rights offering sale of 687.5 million new shares, and sell parts of its asset management business in its latest attempt to shore capital following €8 billion in losses in the past two years after a major operational and balance sheet restructuring was launched by CEO John Cryan in 2015, settling misconduct investigations and scaling back capital-intensive debt-trading businesses.

It’s not a secret the cheap debt policy from the European Central Bank has really helped out several European countries to keep the government finances under control. Well, more or less, as several members of the Eurozone are still running huge budget deficits.

Source: European Commission

Via RealInvestmentAdvice.com,

On Friday, I penned:

“The question that must be answered is just how much of the benefit from these fiscal proposals have already been priced in perfection? What happens if tax reform is less than anticipated? Or infrastructure spending is cut from $1 Trillion to $500 billion? Or repatriation only brings back a fraction of the dollars anticipated?