U.S. Bank Lending Crisis Is Not a “Temporary Hiccup” – BIS

Source: Bloomberg

◆ U.S. banks couldn’t quickly fund lending market when rates spiked & hedge funds ‘compounded the strains’ in vital part of finance – BIS report

◆ The Bank for International Settlements — the central bank of central banks says that the ongoing mayhem in the U.S. repo market which began in September and has seen over $3 trillion pumped into the U.S. banking system suggests that there is a very serious structural problem at the heart of the U.S. financial system

◆ Hedge funds exacerbated the turmoil in the repo market with their thirst for borrowing cash to juice up returns on their trades.

◆ The market was upended in part because four U.S. banks now hold more of their liquid assets in Treasuries relative to what they park at the Federal Reserve which meant “their ability to supply funding at short notice in repo markets was diminished”

◆ The market relies heavily on just four big U.S. banks for funding and the incident is not just a temporary hiccup according to the latest analysis from the Bank for International Settlements.

◆ Investors need to be proactive and become more defensive in their asset allocation to hedge the increasing financial and systemic risks.

Full article via Bloomberg


NEWS & COMMENTARY

Gold little changed ahead of Fed meeting, U.S. tariff deadline

Gold prices slip a bit ahead of Fed meeting this week

Wall St falls as health, tech shares drag, tariff deadline looms

Paul Volcker, the Carter-Reagan Fed chairman who beat inflation, dies at age 92


US firms dominate arms sales list as 2018 global spend rises to $420 billion

‘It’s now or never’: Russia and Ukraine hold peace talks in Paris

World’s largest printer of money is running out of cash

GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)

09-Dec-19 1463.60 1461.70, 1112.04 1111.48 & 1323.09 1320.06
06-Dec-19 1474.85 1459.65, 1122.80 1112.40 & 1328.54 1320.25
05-Dec-19 1474.60 1475.95, 1122.76 1122.31 & 1329.65 1329.54
04-Dec-19 1475.85 1475.10, 1131.53 1125.94 & 1332.54 1327.89
03-Dec-19 1470.40 1477.30, 1132.50 1136.78 & 1328.51 1333.12
02-Dec-19 1457.50 1461.15, 1130.00 1130.05 & 1323.26 1321.17
29-Nov-19 1456.35 1460.15, 1129.55 1131.32 & 1323.24 1327.42
28-Nov-19 1457.55 1454.65, 1127.27 1127.35 & 1323.60 1321.84
27-Nov-19 1459.80 1454.35, 1134.12 1129.74 & 1326.23 1322.30
26-Nov-19 1457.65 1454.65, 1133.76 1131.86 & 1322.96 1321.11



Watch Our Latest Video Update Here


SIGN UP FOR OUR AWARD WINNING MARKET UPDATES HERE


Mark O'Byrne

Also on news-goldcore-com

Videos

Gold Mining Operation Supply Issues Points to a Sustained Bull Market for Gold

What could send gold to $5000 per ounce?

Is it Good to Buy Gold Now?

Blog posts

Gold to Gain Momentum in 2021 – Here’s Why

Big ideas are like supertankers filled with oil; both take forever to get moving. The move from one state to another is a boring form of entertainment. However, each is impossible to stop once the momentum has built. Substantial progress can be seen over a period of time and one can notice and understand the […]

READ MORE

New Video: Dominic Frisby -Why Now is a Good Time to Buy Gold

This week’s guest on GoldCore TV is financial writer, author, and comedian Dominic Frisby who joins Dave Russell to discuss financial markets, inflation and why now is gold and silver’s time to shine… Watch the Video to Learn More Make sure you don’t miss a single episode… Subscribe to our YouTube channel. Gold to hit $3,000, […]

READ MORE

Will Gold and Silver Surge to New Highs in 2021?

Gold has clearly broken out to the upside in recent days and silver is rallying along with it! Gold has pushed past its 200-day moving average and broke upwards through the downtrend line. The gold price has risen 12% in US dollar terms from the year-to-date low set on March 30, 2021, of US$1683.95 to […]

READ MORE

Featured

How High is Too High for Rising Government Bond Yields?

READ MORE

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Gold Mining Operation Supply Issues Points to a Sustained Bull Market for Gold

What could send gold to $5000 per ounce?

Is it Good to Buy Gold Now?

Blog posts

Gold to Gain Momentum in 2021 – Here’s Why

Big ideas are like supertankers filled with oil; both take forever to get moving. The move from one state to another is a boring form of entertainment. However, each is impossible to stop once the momentum has built. Substantial progress can be seen over a period of time and one can notice and understand the […]

READ MORE

New Video: Dominic Frisby -Why Now is a Good Time to Buy Gold

This week’s guest on GoldCore TV is financial writer, author, and comedian Dominic Frisby who joins Dave Russell to discuss financial markets, inflation and why now is gold and silver’s time to shine… Watch the Video to Learn More Make sure you don’t miss a single episode… Subscribe to our YouTube channel. Gold to hit $3,000, […]

READ MORE

Will Gold and Silver Surge to New Highs in 2021?

Gold has clearly broken out to the upside in recent days and silver is rallying along with it! Gold has pushed past its 200-day moving average and broke upwards through the downtrend line. The gold price has risen 12% in US dollar terms from the year-to-date low set on March 30, 2021, of US$1683.95 to […]

READ MORE

Featured

How High is Too High for Rising Government Bond Yields?

READ MORE

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE