Bank Losses From Swiss Currency Surprise Seen Mounting

Among those taking a hit: Everest Capital, who lost its main fund.

 

The $400 million of cumulative losses that Citigroup Inc. (C), Deutsche Bank AG and Barclays Plc (BARC) are said to have suffered from the Swiss central bank’s decision to end the cap on the franc may be followed by others in coming days.

“The losses will be in the billions — they are still being tallied,” said Mark T. Williams, an executive-in-residence at Boston University specializing in risk management. “They will range from large banks, brokers, hedge funds, mutual funds to currency speculators. There will be ripple effects throughout the financial system.” Continue reading

“Federal Reserve and Other Central Banks Own Close to Half of All Stock Markets”

These links reveal that the US Federal Reserve Board and other central banks around the world own “close to half of all [the] stock markets.” The title of this post is the title of the first link. Please re-read the first sentence and let it sink in to grasp the meaning of this shocking revelation. I think most citizen-investors around the world assumed that all stocks were owned by private investors, sovereign investment funds, pension funds, mutual funds, etc. Not true! The first three links reveal that vast amounts of stock equities are owned by the US Federal Reserve Board and other central banks! The Fed and the central banks have surely been buying these stock funds with fantasy money, money created by the central banks “out of thin air.” If a private investor tried to do that, it would be called “counterfeiting.” Continue reading