This could get messy.
Markets feel directionless, demotivated and listless as we wait for the next impetus to emerge – problem is, it might be a shocker.
Blain's Morning Porridge
Financial Commentary for Smart People
Blain's Morning Porridge
Financial Commentary for Smart People
Tag banks
Bad Banks, Bad Management, Twitter and Blain’s Rules on Bank Investment.
First Republic’s numbers show how close it came to failure – it’s a saga of stale management and bad banking, but reinforced by the pace of rumour and sigh on social media. Will it happen again? Blain’s Rules on Bank Investment may help you avoid the bad’uns..
Bitcoin, Banks, Earnings, Inflation, Shadow Banking and, oh.. what else?
Bitcoin’s recent gains are about as relevant as Liz Truss. But banks, earnings, inflation, rates and investment remain critical. Now shadow banking investment is under threat – which isn’t going to help.
The Week ahead will be Full of Noise – Buckle-up and Enjoy It!
The Media love financial crisis – it sells. The reality is the need to understand, plan, prepare, and don’t expect anything you expected to happen, happen. Enjoy. Sun comes up tomorrow.
CoCos, AT1s – Proved Right at Last!
The “rescue” of Credit Suisse, thereby averting a European banking crisis, is getting less comment than the nixing of its $17.5 bln of CoCo Bonds. I’ve been warning about CoCos since 2011. Finally I got something right!
The War Between Market Stability and Chaos hots up – How will it play?
Central Banks face a mighty challenge persuading markets and depositors the banking system is stable. The war between chaos and order in markets has turned hot. At stake is the stability and future of the global economy. Anyone for the last few choc ice?
What future for Banks, and the UK budget
SVB is done and dusted, and its time to ask questions, like: what is the future for banks? What do they do, and how do they do it? Are they at an evolutionary dead end? Probably. And the sheer joy that is the UK budget… stronger coffee please.
SVB Crisis – Time to Put Yer Buying Boots on?
SVB is a crisis averted, but the market wasn’t paying close attention which spells opportunity. There are bigger risks from central banks being distracted from fighting inflation and normalising rates. That’s the real crisis!
This is not about Banks – This is a Valuation and Private Asset Crisis
Markets are in a fluster over US banks, but that’s not the real problem. There is a looming crisis about to roil markets stemming from inflated valuations in the Private Asset sector. This is going to get really messy. Hard Hats on!
Be very suspicious of banks declaring diversity goals
Don’t be fooled by thin summer markets – the world has changed, markets no longer take August off. Yet, finance changes slowly - for all the talk about diversity it’s taking generations to change the mindset and sense of entitlement that underlies markets. Maybe a good shock will be no-bad-thing – but banks making statements about their diversity ambitions should be treated with suspicion.