Jump to content
Sign in to follow this  
callmejoe

Financial crash? : 2017-18 peak / lasting until 2020 -21 ?

Recommended Posts

http://uk.finance.yahoo.com/news/hsbc-faces-70bn-capital-hole-133705984.html

 

HSBC faces £70bn capital hole, warn Hong Kong analysts

Research firm Forensic Asia calculates that HSBC has overstated the value of the assets on its balance sheet by more than £50bn

HSBC could have overstated its assets by more than £50bn and ultimately need a capital injection of close to £70bn before the end of this decade, according to an incendiary report published by a Hong Kong-based research firm .

Forensic Asia on Tuesday began its coverage of Britain’s largest banking group with a ‘sell’ recommendation, warning the lender had between $63.6bn (£38.7bn) and $92.3bn of “questionable assets” on its balance sheet, ranging from loan loss reserves and accrued interest to deferred tax assets, defined benefit pension schemes and opaque Level 3 assets.

 

Share this post


Link to post
Share on other sites

Another article on HSBC.

When you get stories like this circulating, even if there was no issue, it will develop into one.

Kind of like the tuppence in Mary Poppins

 

 

 

http://iacknowledge.net/hsbc-bank-on-verge-of-collapse-second-major-banking-crash-imminent/

HSBC Bank on Verge of Collapse: Second Major Banking Crash Imminent

 

Concerns about an imminent bank crash were further fuelled today at news that HSBC are restricting the amount of cash that customers can withdraw from their own bank accounts. Customers were told that without proof of the intended use of their own money, HSBC would refuse to release it. This, and other worrying signs point to a possible financial crash in the near future.

 

HSBC is scrambling to manage a seemingly terminal liquidity crisis (a lack of hard cash) that could see the bank become the next Northern Rock – and trigger a bank crash. The analyst’s advice is for shareholders to sell HSBC investments, and customers to move their accounts elsewhere before the crash.....

Share this post


Link to post
Share on other sites

According a report by the BBC’s MoneyBox Programme, HSBC customers have gone to withdraw cash from their accounts, only to find HSBC would not release the funds. Customers were told to make a bank transfer instead, unless they provided documentation proving the intended use of the money. Stephen Cotton attempted a withdrawal and told the programme:

“When we presented them with the withdrawal slip, they declined to give us the money because we could not provide them with a satisfactory explanation for what the money was for. They wanted a letter from the person involved.”

Mr Cotton says the staff refused to tell him how much he could have: “So I wrote out a few slips. I said, ‘Can I have £5,000?’ They said no. I said, ‘Can I have £4,000?’ They said no. And then I wrote one out for £3,000 and they said, ‘OK, we’ll give you that.’ “

>

======

 

If you cannot get your money out of the bank when you ask for it, it is not "your" money anymore

Share this post


Link to post
Share on other sites

just moved some money from a business account

 

straw and camel you never know

 

 

http://www.zerohedge.com/news/2014-01-26/first-hsbc-halts-large-withdrawals-now-lloyds-atms-stop-working

 

First HSBC bungles up an attempt at pseudo-capital controls by explaining that large cash withdrawals need a justification, and are limited in order "to protect our customers" (from what - their money?), which will likely result in even faster deposit withdrawals, and now another major UK bank - Lloyds/TSB - has admitted it are experiencing cash separation anxiety manifesting itself in ATMs failing to work and a difficult in paying using debit cards. Sky reports that customers of Lloyds and TSB, as well as those with Halifax, have reported difficulties paying for goods in shops and getting money out of ATMs.

All three banks are under the Lloyds Banking Group which said: "We are aware that some customers are unable to use their debit cards either to make purchases or to withdraw money from ATMs. "We are working hard to resolve this as swiftly as possible and apologise for any inconvenience caused."

 

Share this post


Link to post
Share on other sites

Pay no attention to this.

Get your money out while you can.

 

http://www.zerohedge.com/news/2014-01-26/furious-backlash-forces-hsbc-scrap-large-cash-withdrawal-limit

Furious Backlash Forces HSBC To Scrap Large Cash Withdrawal Limit

... following feedback, we are immediately updating guidance to our customer facing staff to reiterate that it is not mandatory for customers to provide documentary evidence for large cash withdrawals, and on its own, failure to show evidence is not a reason to refuse a withdrawal. We apologise to any customer who has been given incorrect information and inconvenienced

 

Indeed, as one HSBC customer exclaimed, "you shouldn't have to explain to your bank why you want that money. It's not theirs, it's yours."

Share this post


Link to post
Share on other sites
Here in Hong Kong, the market seems to be treating the news of UK withdrawal limits with mostly a big yawn.


Hang Seng Index is down : - 1.93 % / - 433 to 22,017


HK-5 / HSBC is down ---- : - 2.20 % / -2.20 to $82.20


HK-2840 / Gold etf is up- : +1.17% / +11.0 to $952.00

Share this post


Link to post
Share on other sites

Ken's been working hard with lots of updates but the Forbes article mentioned in update #51 has been removed.

http://blog.redefininggod.com/2014/01/26/event-watch-update-50-debt-limit-showdown-language-emerging.aspx

[update 51 - 26 January 2014]

China "delays" bank transfers at the end of this month

I just came across a Forbes article which offers this little nugget of sphincter-tightening news...

"...In short, there will be a three-day suspension of domestic renminbi transfers. There will also be a suspension, spanning nine calendar days, of conversions of renminbi to foreign currency.

The specific reason given—'system maintenance' at the central bank—is preposterous. It is not credible that during the highest usage period in the year—the weeklong Lunar New Year holiday beginning January 31—the central bank would schedule an upgrade and shut down cash transfers.

A better explanation is that the country’s banking system is running dry."


To be more accurate, though, the first part of the official notice contained in the article speaks of delays, not a full-out suspension. In light of the scheduled "mega-default" which might occur the day after this "delay" begins (see Update 47 in the link below), I find this development quite interesting smile.png

 

[update 52 - 26 January 2014]

More on the Chinese financial product default and bank transfer delays

I was in such a hurry to get out the news in Update 51 that I didn't take the time to include my interpretation of what it means. So here goes....

As mentioned in Update 47 (Point 5), the mainstream media have been trumpeting the scheduled default (on January 31) of a Chinese financial instrument called "2010 China Credit-Credit Equals Gold #1 Collective Trust Product." There is concern among some that if that product is allowed to fail, it might result in an uncontrollable financial chain reaction that could cascade through China, then the world.

Interestingly, according to this ZeroHedge article, there is talk in Chinese banking circles of allowing the default to occur...

>>>ICBC has made it clear it will not bailout investors since reputational damage would be "well manageable," and former-PBOC adviser Li Daokui adds that "a controlled default is much better than no default," noting critically that trust defaults "will teach future investors a very important lesson." Belief that contagion can be "contained" brings back memories of 2008 in the US but a total (or even partial) bailout will merely increase the leverage and risk-taking problem and signal government talk of policy reform is not real.<<<

With these points in mind, we see a reason why the Chinese central bank would want to delay bank transfers starting the day before the scheduled default. It will allow them to scrutinize the transfers versus each bank's cash-on-hand to ensure that the flow of money will leave no bank broke. If a bank is short on cash, for example, they can delay outgoing transfers while speeding-through incoming transfers. It will allow them to ration-out the available cash in a careful way.

All this begs the question, though: is their real reason for allowing the default to "teach investors a lesson on moral hazard" or to kick off a controlled implosion of the old financial system?

 

[update 53 - 26 January 2014]

Did Gordon Chang screw the pooch?

ZeroHedge is now reporting that the Forbes article is faulty. We'll see how it all shakes out in a few days any....

 

 

I really shouldn't copy and paste all his updates here wholesale so pop over to Ken's blog and read update # 54 which is on "the Citibank China notice that started this whole brouhaha".

Share this post


Link to post
Share on other sites

This is a disgrace. I've asked for those scumbags' clothes to be vaporised down to their underpants, along with all their weapons and ammo. Hope they take up my suggestion.

 

http://www.zerohedge.com/news/2014-01-26/markets-are-falling-which-means-its-time-us-bomb-sovereign-nation

Markets Are Falling, Which Means It's Time For The US To Bomb A Sovereign Nation

 

The U.S. military conducted an airstrike in southern Somalia on Sunday against a suspected militant leader, a U.S. military official told CNN.

 

And this is happening after the market has dropped a mere 4% from all time highs. Wait until we enter a bear market: tactical nukes will be going off left and right...

Share this post


Link to post
Share on other sites

Ken has update # 55 out

http://blog.redefininggod.com/2014/01/26/event-watch-update-50-debt-limit-showdown-language-emerging.aspx

 

[update 55 - 27 January 2014]

Ha! Wouldn't you know it, following the eruption caused by the Forbes article and the subsequent smackdown its writer received, it has now been announced that an unidentified party has ponied up the money to pay people back their principal in the aforementioned trust instrument. As for the "unidentified party," can anyone say the Peoples Bank of China (through a proxy)? smile.png

So they backed off the January government shutdown and now the trust default. Next stop, February 7....

Share this post


Link to post
Share on other sites

http://www.sovereignman.com/finance/this-is-what-banks-do-when-they-go-broke-13427/

This is what banks do when they go broke

Banks across most of the ‘developed’ world have razor thin liquidity and capitalization ratios....

 

If just a small percentage of their assets lose value, they’ll go under. Or, if just a small percentage of their customers want their deposits back, they won’t be able to pay up.

 

This is ultimately what’s happening to HSBC. It turns out their UK operations are in severe financial trouble, posting a major capital shortfall of over $100 billion.

 

.... Less than a year ago ........ banks were authorized to count FUTURE earnings ... towards their capital TODAY.

 

This is fraud, plain and simple.........

 

We’re seeing similar restrictions on cash withdrawals in Italy where the amounts are even much lower. Banks in the US have recently started imposing restrictions on international wire transfers as well.

Share this post


Link to post
Share on other sites

CRASH TRIGGERS

From Ken

http://blog.redefininggod.com/2014/01/26/event-watch-update-50-debt-limit-showdown-language-emerging.aspx

[update 56 - 28 January 2014]

Will Congress retreat from the debt limit fight?

It looks like the Chinese aren't the only ones backing off from pulling the trigger. According to this report, the Republicans will go to a three-day retreat starting this Wednesday to figure out how to reduce resistance within their party to passing a debt limit increase. If House Speaker Boehner succeeds, the fight will be over before it begins, and Congress will remove themselves from being the cause of the planned pre-reset crash.

That will leave the following TRIGGERS in place for a market crash:

1) A Fed policy change emerging from the FOMC meeting at the end of this month, or some misstep by Yellen, who takes over the Fed on February 1.

2) A false-flag of some sort (remember how 9/11 hurt the economy). This could occur in the seas off of China, during the Sochi Olympics, or at the Superbowl (I consider this last one unlikely, but it would be a nice way to set up Obama to look like an evil false-flagger in advance of the new Arpaio findings being released).

3) A crazy action by Israel, which could be pinned on a failure of the Iran nuclear deal. There is scuttlebutt that the West has been using the Iranian nuclear talks as leverage at the Syrian peace talks to get the Iranians to abandon Assad. If the Iranians don't play ball, the nuclear deal could be sabotaged and Israel can lash out (due to the oft-publicized claim that Iran is "only 3 weeks away" from having a nuke).

4) A staged move against Obama. This could happen as early as March (when the Arpaio investigation releases their new information on him) or as late as May (when the CIA and Pentagon's "Operation American Spring" is supposed to take place).

5) The failure of a major bank. This could be triggered at any time with a simple adjustment of the fictional public books.

I'll probably think of more contingencies after I post this, but these are the big ones. We're doing okay so far, though, so keep up the meditations, prayers, and actions.

Share this post


Link to post
Share on other sites

http://rt.com/business/us-major-deposit-withdrawal-740/

US Banks Shaken by Biggest Withdrawals Since 9/11

The US Federal Reserve is reporting a major deposit withdrawal from the nation’s bank accounts. The financial system has not seen such a massive fund outflow since 9/11 attacks.

 

­.... financial analysts suggest it could be down to the Transaction Account Guarantee insurance program coming to an end on December 31 last year and clients moving their money that is no longer insured by the government.......

Share this post


Link to post
Share on other sites

http://www.zerohedge.com/news/2014-01-28/russian-bank-halts-all-cash-withdrawals

Russian Bank Halts All Cash Withdrawals

.... Bloomberg reports that 'My Bank' - one of Russia's top 200 lenders by assets - has introduced a complete ban on cash withdrawals until next week. While the Ruble has been losing ground rapidly recently, we suspect few have been expecting bank runs in Russia.....

Share this post


Link to post
Share on other sites

http://www.zerohedge.com/news/2014-01-28/russian-bank-halts-all-cash-withdrawals

Russian Bank Halts All Cash Withdrawals

.... Bloomberg reports that 'My Bank' - one of Russia's top 200 lenders by assets - has introduced a complete ban on cash withdrawals until next week. While the Ruble has been losing ground rapidly recently, we suspect few have been expecting bank runs in Russia.....

 

Here's why ... update

 

lno.gif

Share this post


Link to post
Share on other sites

I don't think it is so simple.

 

Think oil.

Think what will happen if/when Iran's oil exports pick up

Share this post


Link to post
Share on other sites

From the subscriber section of this week's Fulford's report:

The scared cabalists are also fanning trouble in the Ukraine and threatening terror at the Sochi Olympics as part of a major offensive against Vladimir Putin of Russia. The cabalists in Davos also discussed plans to bankrupt Russia by forcing oil prices under $60 a barrel for a year, or about long enough to deplete Russia’s hard currency holdings. This is wishful thinking on their part because oil under $60 a barrel would ruin many major Western banks long before Russia succumbed.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×