U.S. Federal Reserve Earned $77 Billion Profit in 2011

Spanish bank Santander, the biggest in the eurozone by market value, said its net profit plunged in 2012 as it wrote off nearly 19 billion euros ($26 billion) on bad loans and property assets in Spain. The charges slashed net profit last year by nearly 60 percent but left Santander's balance sheet looking more secure.

YVES SMITH helpfully points us to a recent speech by Robert Jenkins, a member of the Bank of England’s Financial Policy Committee.

Goldman Sachs cut its 2013 gold forecasts on Wednesday and said gold’s current price cycle will likely turn next year as a rise in real interest rates on the back of improved growth offsets any further balance sheet expansion from the Federal Reserve. Goldman cut its three, six and 12-month forecasts for gold prices – currently near $1,700 an ounce – to $1,825 an ounce, $1,805 an ounce and $1,800 an ounce respectively. It also introduced a 2014 forecast of $1,750 an ounce, suggesting price growth could tail off.

With all three major non-Fed central banks on the tape today, all economic data will be merely "noise" as the market digests what the central-planners' intentions are. The BOJ came and went, and following its substantial balance sheet expansion announcement, which many called "shocking and awing" the USDJPY has pushed higher by 2.5 big figures, although not reaching the 96 levels seen prior to Kuroda's actual announcement.

As many expected, the Bank of Japan has upped the cost in its fight against deflation by increasing the country’s inflation target from 1 percent to 2 percent.   But even the bank’s commitment to hold interest rates near zero and keep buying up assets until the 2 percent inflation target becomes a reality has not overly impressed market watchers.  

By Calafia Beach Pundit: The Fed recently released flow of funds data for the second quarter, which includes an update to Household's Balance Sheet. The decline in real estate prices has reduced the value of real estate holdings by about $1 trillion in the past year. However, this loss was more than made up for by a $5 trillion surge in the value of total financial assets and a modest decline in liabilities, resulting in an increase in net worth of $4.4 trillion over the past year.

By Osman Gulseven:Recently, fellow Seeking Alpha contributor, Neal Razi, published an article titled "Rising Interest Rates Present Buying Opportunity for Annaly Capital and Other Mortgage REITs".