Investment Markets Overview — W/E 19th August 2016

Shadow Banking….“refers to the financial intermediaries involved in facilitating the creation of credit across the global financial system but whose members are not subject to banking regulatory oversight,” such as finance companies, credit insurance providers, money-market and exchange-traded funds, private equity firms and hedge funds. The list is growing and actually includes many of the largest banking organisations who prefer to place part of their activities outside of the regulated channel (for obvious reasons) plus it’s far more profitable for them. Aside of it making a joke of the so-called “prudentially-regulated banking system,” for example much of the mortgage-backed securitisation that allegedly caused the 2007 financial crisis was completed via the shadow banking sector, it has grown to such an extent now that it poses a very serious risk to the global financial system itself, estimated to have grown from $47,000,000,000,000 post the 2007 “problems” to well North of $100 Trillion today. According to the euphemistically called “Financial Stability Board,” a regulatory task force for the G20 economies set-up in 2011 and headed-up by “Chancer Carney,” shadow banking makes up 25% to 30% of the total financial system and one has to wonder just how accurate that figure is when it’s outside of regulated activity. Either way, aside of operating within the perceived global tax-havens, shadow banking operates across the financial sectors of America, Europe and China, the latter on which is expanded on below:

19 Aug 16 .

Subscribe to the Full Investment Markets Overview Newsletter which contains the following:-

Additional Commentaries:
•US economic data . . .
•Euro-Zone . . .
•The UK . . .
•Out East . . .
•The $US index . . .
•Within the commodities complex . . .
•Economic data due next week includes . . .

  Returning to the “Shadow Banking” concerns, they do not have banking licences so do not take deposits as a depository bank would, instead they ……

Charts:
1.  Indices Weekly
2. US New Home Starts V US Housebuilder Sentiment
3. UK CPI V UK  Imported Food Prices
4. Japan GDP V  Japan Exports
5. Commodities Weekly

Table:

13 Indices, 11 columns of detailed information, for accurate analysis

“A chain is only as strong as its weakest link”

Click Here to view Details of the full version of this Newsletter which includes full text and detailed

 

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