Yesterday, when looking at the exposure of the Canadian banking sector to energy, we found something disturbing: according to an RBC analysis, local banks were woefully underreserved.
Moments ago S&P continued its downgrade cycle, this time taking the axe to the regional banks with the highest energy exposure due to "expectations for higher loan losses." Specifically, its lowered its long-term issuer credit ratings on four U.S. regional banks by one notch: BOK Financial Corp., Comerica Inc., Cullen/Frost Bankers Inc., and Texas Capital Bancshares. The outlooks on these banks are negative.
It also revised the outlook on BBVA Compass Bancshares to negative from stable and affirmed the 'BBB+/A-2' issuer credit ratings.
More than one-fifth of the world’s total GDP is in countries which have imposed negative interest rates, including Japan, the EU, Denmark, Switzerland and Sweden.
Negative interest rates are spreading worldwide.
And yet negative interest rates – supposed to help economies recover – haven’t prevented Japan and Europe’s economies from absolutely going down the drain.
Nor have they even stimulated spending. As ValueWalk points out:
Submitted by Chris Martenson via PeakProsperity.com,
Financial markets the world over are increasingly chaotic; either retreating or plunging. Our view remains that there’s a gigantic market crash in the coming future -- one that has possibly started now.
Our reason for expecting a market crash is simple: Bubbles always burst.
What a day... this seemed appropriate...