Articles About Wall Street

A Massive Bank Bailout Could Soon Strike Global Markets Again

0 | By Shah Gilani

The beginning of the newly restructured Deutsche Bank may end up like every other iteration of the old struggling Deutsche Bank.

That’s because the giant German lender and would-be Master of the Universe, sometimes known simply as DB, who just announced 18,000 more layoffs as it downsizes, again, may be charged criminally for its involvement in the global 1MDB scandal.

Depending on what charges the U.S. Justice Department may file, and how big a fine Deutsche Bank may have to pay, the European Central Bank (ECB) may have to lend DB more money to not end up where it really belongs, in the history books.

With the biggest number of bank layoffs since the bankruptcy of Lehman, and a 10-year $17 billion tab in fines for regulatory failures and technically criminal activity, DB’s woes are anything but over.

But there’s more

What the Failure of Deutsche Bank Says About Central Banks

0 | By Shah Gilani

No, Deutsche Bank, Germany’s largest bank, hasn’t failed, as in going out of business and being shut down.

But it has failed in every other sense of the word.

What happened to Deutsche Bank is a warning.

It’s not a warning for how greedy bankers blow themselves up, though it is about that.

It’s not a warning against how easily compliance can be circumvented, though it is about that.

It’s not a warning of what one giant bank’s “failures” can do to banking across a country or Union, though it is about that.

Ultimately, Deutsche Bank’s failures are a warning about how central banks cover up failure and how dangerous they are

Capital Wave Forecast: Where Half a Trillion Dollars Could Possibly Go Next

0 | By Shah Gilani

For a short week last week, the long in the tooth bull market sure showed its “agelessness.”

Too bad there wasn’t any meaningful volume of capital inflows to warrant the records that were broken.

Then again, it was a holiday shortened week.

Still, as old as this bull is, the only thing that’s not killing it is the Federal Reserve’s mouth to mouth resuscitation efforts and the fact that it’s the MOST HATED and MISTRUSTED bull market in HISTORY.

And that means, what’s moving markets higher is all the sidelined money, like the money that didn’t come in last week, or the month before, or the quarter before.

It’s all there on the sidelines and waiting to come in or waiting to say “I told you so!”

That is, if the market tail turns

Enough Already with the Federal Reserve Ruining America

0 | By Shah Gilani

The fact of the matter is, the Federal Reserve System, America’s so-called central bank, which by the way chose Federal as part of their name to imply they’re a department of the federal government (they’re not, they’re a private institution), chose to call themselves a “System” as opposed to a bank (because banks were hated and causing America’s boom-bust cycles at the time of the Fed’s creation), is ruining America.

Here’s what the Federal Reserve really does and why it should be abolished

Facebook Will Become a New Central Bank: What to Do Now

0 | By Shah Gilani

As if the world’s central banks, especially America’s private central bank the Federal Reserve System, weren’t secretive enough, powerful enough, manipulative enough, and self-serving enough, along comes Facebook, creator of another central bank.

Yep, you heard me.

Facebook is creating a central bank, though I doubt they’ll ever admit it or call it that, to manage Libra.

Be afraid, be very afraid, if Facebook’s Libra cryptocurrency takes hold, because the central bank it’s setting up will be secretive, powerful, and manipulative, just like the Federal Reserve.

Here’s what you don’t know about what Facebook’s really doing with Libra

Capital Wave Forecast: What We Need This Week for a Market Turnaround to Last

0 | By Shah Gilani

Money flows into stocks last week were muted across the board, with retail investors in equity mutual funds and ETFs decidedly on the sidelines ahead of the meeting Saturday between President Xi and President Trump.

The same wasn’t true for institutional money. Speculative bets on the long side increased towards the end of the week as big traders positioned themselves for good news.

Those bets look like they’re paying off already.

After a two-month layoff on trade talks, Xi and Trump agreed to get back to the table.

Pre-open today, Monday, July 1, 2019, futures across the board are all more than 1% higher.

That’s on the heels of a 2.2% gain overnight for the Shanghai Composite and a strong opening and early trading across European bourses.

The big gains likely today should start to bring a lot of the stockpiled money on the sidelines back into equities. Almost $40 billion came out of equity mutual funds and equity ETFs in the first quarter and the second quarter, with full data available soon, looked like more of the same.

Barring any out-of-left-field negative news, equities should see money pouring back in this week, definitely institutional flows, and a turnaround in retail inflows as sidelined investors see clearer sailing ahead.

If major benchmarks all, or almost all, make new all-time highs this week, capital will flow back into to stocks on FOMO flows – that is, “fear of missing out.”

Facebook’s Libra and the Element of Air

0 | By Shah Gilani

The problem with cryptocurrencies is that they’re all pumped up with hot air.

Facebook’s Libra is the best example yet.

Even its name, taken from the zodiac, is based on the element of air.

Here’s what’s hot and what’s not about Libra and why it’s true to its element.

In Astrology air is the element that connects all other elements (earth, fire and water), even though it might seem less relevant, invisible as it is.

Facebook, with its constellation of 2.4 billion active users, wants Libra to be the connecting element, as in money, between buyers and sellers of everything up in cyberspace and down here on earth.

Towards that end, Facebook isn’t concocting Libra out of thin air, like, say, Bitcoin.

Not even close

When the Nasdaq and the Russell Break These Levels… It’s Over for the Bull Market

0 | By Shah Gilani

On Friday, I wrote here about the Dow Jones Industrials Average, how that venerable index could get back above 26,000, and how we need to stay above there for the long bull market to leg-up even more.

But I warned we weren’t quite in leg-up mode, and that the Nasdaq Composite, and, even more importantly, the Russell 2000 weren’t in quite as good shape as the Dow.

Here’s where the important levels are for both the Nasdaq and Russell, and what they are saying about the bull market

It’s the World’s Most Powerful Investment Bank… and Now It’s Going to Work for You

2 | By Shah Gilani

It’s true. Starting sometime next year, Goldman Sachs Group Inc. (NYSE: GS) – the poster child Wall Street investment bank of the 1% of the 1% of the superrich – is going to lend money to the remaining 99% of consumer borrowers.

Don’t bother getting all suited up with hat in hand for a visit to a local branch of Goldman Sachs Bank USA (with its $73 billion in deposits) – there won’t be one.

And don’t even think about walking into the bank’s office at 200 West Street in New York City – you won’t get passed security.

However, with Goldman’s new lending strategy, that walk-in access won’t be required.

Goldman Sachs, you see, is getting into online banking.

This new venue of borrowing was known as P2P, or peer-to-peer lending – until big money transformed the P2P moniker into “power-to-profit.”

And as we’ve been predicting for some time, P2P lending is creating a big moneymaking opportunity for you…