Free Republic

Any time a major bank releases a report saying a given course of action is too costly, too prohibitive, too blonde, or simply too impossible, it is nearly guaranteed that that is precisely the course of action about to be undertaken. Which is why all non-euro skeptics are advised to shield their eyes and look away from the just released report by UBS (of surging 3 Month USD Libor rate fame) titled "Euro Break Up - The Consequences." UBS conveniently sets up the straw man as follows: "Under the current structure and with the current membership, the Euro does not...

A couple of weeks ago, I published a column outlining my doubts about the health of China’s banking system in the lead-up to the Agricultural Bank of China (AgBank)’s IPO. Given the lackluster performance of that share launch – despite the considerable political capital Beijing mobilized behind making it a success – it seems I was hardly alone in my concerns. Now some concrete data is starting to emerge regarding the potential size of the problems that may be lurking on China’s bank balance sheets — in particular, the losses that may be incurred from risky stimulus loans made to...

Note: The following blog entry is a quote: Blog Details Pakistani Daily: Taliban Vow To ‘Reform’ Media And Banking The Taliban have vowed to ‘reform’ the media and banking system as a next step in their Islamization program, according to a Pakistani daily. In recent years, the Taliban had mainly attacked barbers’ shops for shaving beards, music centers for selling CDs and videos and girls’ schools. According to a report in Lahore-based newspaper Daily Times, Taliban spokesman Muslim Khan said their next target will be the banking system where "un-Islamic affairs are being carried out." The spokesman added that the...

Citigroup Bailout Raises Viability Questions For Entire Banking System Still more details are emerging from the weekend bailout of Citigroup. And in what is no surprise in this corner, it appears Citigroup is not well capitalized and Faces Pressure to Slim Down. /snip The question now is "Just how bad are Citigroup's books?" Don't expect answers from the Fed, but when FDIC Chairman Sheila Bair wants no part of the action, we at least have an indirect answer: Things at Citigroup (and no doubt everywhere else), are not as good as the financial institutions are letting on. Viability Of Banking...

China's weak banking system threatens economic growth, reforms: experts by P. Parameswaran Tue Aug 22, 5:48 PM ET Saddled with bad loans, China's critically weak banking system risks stifling its rapid economic growth and reform process, Standard and Poor's pointman for Asia-Pacific ratings warned. Michael Petit, the global ratings agency's managing director of Asia-Pacific corporate and government ratings, said "the most visible weakness" of China's banking system was the extent of its problem loans, which the agency estimated at 500-650 billion dollars at the end of 2005. In contrast, China's official figure is about half the agency's estimate at 225...

N. Korea Sets Terms for Return to Nuclear Talks By Glenn Kessler Washington Post Staff Writer Thursday, March 9, 2006; Page A16 In a rare meeting between U.S. and North Korean officials this week, North Korea pressed the United States to end efforts to stem alleged money-laundering and counterfeiting activities, warning that otherwise it would not return to the six-nation talks on its nuclear programs. Li Gun, the senior North Korean official at the meeting, made four requests, according to a U.S. official familiar with the talks. They included demanding that the United States remove what he called "financial sanctions,"...

<p>Back in the 1980s, a lot of best-selling books were written about how the United States should emulate Japan. Pursuing free market economics based on individual entrepreneurs was passe, so it was often said by Ronald Reagan's critics. Instead, we should follow Japan's lead and actively use government to pick winners and losers. Its all-powerful Ministry of International Trade and Industry (MITI) was the wave of the future, we were told over and over again.</p>