Simon Black, an international investor wrote in Sovereign Man, I quote his article in the above title, ‘….the deputy chair of the Monetary Authority of Singapore (Lim Hng Kiang) said last night at a dinner that “an uneasy calm seems to have settled in markets” and that “we remain in uncharted waters.”
It was pretty amazing, really, to see such pointed language from a central banking official. Mr. Lim jabbed at the “obvious” risks and said there would be “bumps on the road” ahead. That’s putting it mildly….
… the US financial system back in 2009. Lehman Brothers. Wachovia. Washington Mutual. Etc. They were all swimming naked, with very little liquidity and miniscule capital levels.
Singapore’s monetary authority is obviously concerned about financial markets. They understand that you can’t expect to conjure trillions of dollars out of thin air without creating epic bubbles and even more epic consequences….
Central banks and institutional investors turn a deaf ear to obvious risks and fundamentals that are screaming out in desperation hoping some conservative steward will notice that we are tap dancing on a knife’s edge, where nearly every single financial market is simultaneous at/near an all-time high, and central bankers keep pumping money into economies that they claim to be ‘recovered’
This is the ‘uneasy calm’ that Mr. Lim discussed – a prevailing attitude that there’s nothing to see here; keep calm and buy the all-time high….
If a senior official presiding over one of the world’s safer banking jurisdictions wants his banks to become even safer, a rational person would certainly wonder – “What do these guys know about the financial system that I don’t?”
They must be expecting the mother of all busts.’
Could Lim Hng Kiang’s fear a tell-tale sign of the things that are being reported in the US about American banks being involved in all kinds of fraudulent deals and practices? There was a Bloomberg report a few days’ back by Zeke Faux, Stephanie Ruhle and Sam Mamudi.
‘June 26 (Bloomberg) — Money managers and brokers shunned Barclays Plc’s dark pool, and Chief Executive Officer Antony Jenkins pledged an urgent inquiry, after the bank was accused of lying to clients about high-frequency trading on the venue.
Deutsche Bank AG, Royal Bank of Canada, Sanford C. Bernstein & Co. and Investment Technology Group Inc. are among brokerages that disconnected from the Barclays LX platform after New York Attorney General Eric Schneiderman sued the bank yesterday, according to people with knowledge of the matter. Barclays falsely assured investors they would be protected from high-frequency traders while it simultaneously aided predatory tactics, Schneiderman’s office wrote in the complaint….’
Many big American and European banks have been sued and have paid hundreds of millions or billions in fines for all kinds of financial crimes that they jolly well known should not be done. Would this Barclay’s case be the one to tip the cart and everything comes crashing down? The whole international financial system and their products have been operating with dubious credibility, taking abnormal high risk, gambling, cheating and scamming their clients and getting away with it. It is only a matter of time when the law just cannot turn a blind eye to it and all the CEOs of the top banks would find themselves behind bars for condoning and allowing such criminal activities to be conducted by the banks.
MAS and Lim Hng Kiang must be privy to many inside information of the ugly truths that are not reported in the media and must have the common sense to know that it will not be long when the whole financial system imploded under the management of crooks and thieves. Everything is looking too good to believe and the amount of so called profits they are generating to pay themselves crazy cannot be real. The banks are making more profits than the casinos in Las Vegas, Macau and Singapore. How could they do better than casinos? Think about it. Some smarter countries are turning to the yellow metal to hedge against such an eventuality when all paper money will become worthless.
How long to go before the big collapse is anyone’s guess. MAS must be worrying.
Chua Chin Leng aka redbean