By Christopher Balding:While most commentators have chosen to focus on the nefarious sounding "shadow banking" industry, the real problem is that banks are illiquid after having moved so much of this off balance sheet.
The question on my mind today is "When will the Spanish banking system collapse?" Spain's exposure to Portuguese debt is one of many reasons a collapse in inevitable.
The Spanish banking system passed a so-called "stress test" in 2012, but sovereign government bonds are are not included in the evaluation.
We saw how well that worked with Greece (over and over again), and with Cyprus as well. It was Cypriot exposure to Greek bonds that collapsed the Cypriot banking system.
Open Road Media is banking its future on digital publishing — and it's starting with old books first. The company is digitizing "back list" books — titles written long before e-books, or e-rights, even existed — and selling old classics with aggressive multi-platform marketing campaigns.» E-Mail This » Add to Del.icio.us
By now everyone has heard of securitization: the process whereby banks take risky assets on their books, package, tranche them, and then re-sell them to yield chasing fiduciaries of widows and orphans.
Peter Beinart's been taking some criticism for publishing his essay on Israel in the New York Review of Books, which is apparently an anti-Israel publication because it occasionally publishes left-wing Jews. Beinart scoffs at this, and so do I.
John M. Mason submits: According to the latest statistics of the Federal Reserve on the banking system, the banking system, as a whole, continues to shrink. Over the last 12 months, the total assets of all commercial banks in the United States banking system shrank by $560 billion, or by about 5%. In the three months ending in January 2010, total bank assets dropped about $170 billion, with about $40 billion of the drop coming in January itself.