The Financial Stability Oversight Council, a panel of top U.S. regulators charged with preventing future financial crises, met Thursday to discuss the past decade's surge in corporate borrowing, much of it by companies with junk-grade credit rating. An economic downturn likely would bring a wave of credit-rating downgrades and debt defaults that could ripple across markets.
U.S. Treasury Secretary Steven Mnuchin on Thursday led a secret meeting of top U.S. financial regulators on the risks to global markets from the recent surge in corporate borrowing -- a growing concern as fears mount that the economy might be headed for a slowdown or a recession.
The Financial Stability Oversight Council, formed in the wake of the 2008 financial crisis to prevent a repeat, met "in executive session," or behind closed doors, according to a statement released by the Treasury Department's public-affairs unit following the meeting.
Members of the group include Federal Reserve Chairman Jerome Powell as well as the heads of the Office of the Comptroller of the Currency, Federal Deposit Insurance Corp., Consumer Financial Protection Bureau, Securities and Exchange Commission and Commodity Futures Trading Commission.
> According to the statement the panel heard an "update" from Craig Phillips, a counselor to Mnuchin, on recent market developments involving "corporate credit and leveraged lending."
Eli Bailey
Leveraged lending is the financial industry's term for the practice of making loans to companies with poor credit ratings, colloquially known as junk. Historically, the market was dominated by banks, but in recent years investment firms and other non-bank lenders joined in; the outstanding amount of the loans has mushroomed over the past decade to about $1.2 trillion, eclipsing the more-established junk-bond market.
There's also been a surge in borrowing by companies with triple-B ratings, which rank just above junk but could face dire downgrades if an economic slowdown shrinks profits for those borrowers. That category of debt has climbed to an unprecedented level of more than $3 trillion, according to Standard & Poor's, sparking warnings from officials including Robert Kaplan, president of the Federal Reserve Bank of Dallas.
> The concern is that if the economy falters, loan losses would climb dramatically and other companies would be more likely to default on their outstanding bonds. > "Credit stresses are multiplying," analysts at Bank of America, the second-biggest U.S. lender, wrote last week in a report. > "Reduced risk appetite leads to restricted capital access, which in turn has the potential to set the stage for elevated distress and eventual defaults."
In recent days, yields on 10-year U.S. Treasury notes have slipped below those on shorter-term bills and notes -- an unusual phenomenon known as a "yield-curve inversion" since investors usually demand higher returns to compensate for the extra risk that comes with a longer payback period. It's often seen as a classic sign of an impending recession.
Adrian Diaz
> The borrowing binge by U.S. companies has garnered so much attention from investors lately that Powell, the Fed chairman, devoted an entire speech to the topic on May 20. He said there's currently a "moderate" risk that business debt triggers a full-blown financial crisis, although "the level of debt certainly could stress borrowers if the economy weakens." > "Once again, we see a category of debt that is growing faster than the income of the borrowers even as lenders loosen underwriting standards," Powell said. > The Office of the Comptroller of the Currency, a branch of the Treasury Department that supervises national banks, wrote in a May 20 report that "years of growth, incremental easing in underwriting, risk layering and building credit concentrations result in accumulated risk."
The corporate-lending surge has been fueled by firms like Blackstone (BX - Get Report) and Apollo Global Management (APO - Get Report) , which rely on junk-grade loans to finance the acquisitions they make through their private-investment funds.
In recent years, the firms have also waded into the corporate-lending business themselves and they now routinely package junk loans into new bonds known as "collateralized loan obligations," or CLOs -- some with pristine triple-A ratings that can be easily sold on to investors with promises of attractive yields.
Carson Smith
Apparently bilibili have to change their app launch screen. They can no longer "cheers" which was part of an old slogan on the site Top is original bottom is new launch screen Also they have to change the name of some series, like Tenshi no 3P" become "Tenshi no three pieces", "Kill Me Baby become "Chu Mi Baby" using phonetically translation, "Shigofumi: Letters from the Departed" become just "Stories of Last Letter" the secondary part of the series title in English
Indeed, with U.S. banks facing tighter scrutiny over the past decade, the private-equity industry has had almost free rein to take over a bigger portion of the financial markets. The five biggest private-equity firms, including Powell's former employer, Carlyle Group, now manage some $1.37 trillion of client money overall, based on a tally by TheStreet.
> Mnuchin and other Treasury officials have proposed to exempt these "non-bank firms" from getting designated as "systemically important" -- a label that would subject them to much tougher oversight. Instead, regulators would supervise the firms' "activities."
> According to Thursday's statement, the oversight council "heard a presentation from Treasury staff" on public comments submitted in response to Mnuchin's proposal.
The presentation wasn't released, but the comments are publicly available on a government website. They include a May 13 letter to Mnuchin from the American Investment Council, the main U.S. trade association for private-equity firms, advocating for the exemption.
Yet there's still powerful opposition -- from the likes of former Treasury secretaries Timothy Geithner and Jacob Lew as well as former Fed chairs Ben Bernanke and Janet Yellen.
"Regulation, of course, carries burdens for individual firms, but these consequences have to be measured against the tragic and indiscriminate costs of a crisis," they wrote to Mnuchin and Powell in a joint letter, also dated May 13.
why is beer such a big part of bili branding? Is it because bili sounds like "biri" which sounds like "beer" with a chinese accent?
Aiden Clark
This logo is much less fun... but an understandable change.
Actually, that wouldn't fly in the US either. If the Crunchyroll lady were swilling beer people would probably object, as little babbies use crunchy to watch that show about the yelling pirate, and that other one about naruto's kid
Samuel Peterson
You didn't have to paste the entire article, user.
Justin James
Yes I did because I usually clean my history and forget stuff and then I search Jow Forums archives if I posted it in there ( ._.)
Angel Hall
l-let's all buy and write as many puts as we can on monday! We can do it!
Aiden Reyes
You can watch these two music video that symbolized the concept: bilibili.com/video/av221107 bilibili.com/video/av221106 Borrowing the words from the song's creator, It "represented out culture and ideal, filled with our memory and emotion" But as the platform have been continually sanitized for both political and copyright reason, and as the company increasingly becoming like a big media platform instead of just a small video site for passionate fans creator to share their own fan-made video, there are some old users who think the website have already departed from its original ideal.
Yes... that's what I thought. They are shown here being friendly towards eachother, and it appears to be a very flattering depiction.
...Yet the two sent countless men to die in a war between them, and are considered two of the most brutal tyrants of history.
Does modern Chinese culture, or the ruling communist party of China, consider them to be great men, and think of them fondly?
Gabriel Bailey
China already knows that the game is up in regards to accessing chips from American designers, so why not cripple the American manufacturing capacity of these chips in retaliation?
Apple will absolutely shit itself if they cut off rare earth metals, because they have the double or tripple whammy of;
1. Their existing supply chain being shot to pieces in China.
2. Losing the Chinese market for the Iphone.
3. Having to spend megabux on setting up manufacturing in another country on what is a declining markets (smartphones).
If Apple ever got slaughtered, the bull market is done.
Zachary Martin
I think it is just trying to persuade America to accept China's condition on trade deal by saying China is a important customer to many American industries. Airplanes, basedbeans, automobiles, IC are all widely discussed in the past year, they have already reduced much of their purchase of American basedbeans due to it, and it is not exactly easy for China to get alternative for American airplanes or IC. (Airbus is now facing production capacity limit). Cotton seems relatively new?
Connor Myers
The Chinese loved Stalin. Kruschev's condemnation of Stalin was the start of the Sino-Soviet split in the late 50s.
Very odd video.
John Baker
Can someone please post the google drive link for the booklist? thx
Xavier Hill
This document isn't meant for US officials, it's for anyone who can read English who has an interest in the trade war.
Basically, this is China's flex against Trump, telling him to come back to the negotiating table or they'll start to drop American imports and sanctioning US companies.
It's a threat. It's a playbook for outside investors.
Owen Gonzalez
There were some meme fanmade video created around the two on the website at the time. Most Hitler one come from knowyourmeme.com/memes/hitlers-downfall-parodies As for >They are shown here being friendly towards eachother That is kind of the theme of the video, everyone meet on the site, join together, and smile and love each other to create a lovely and memorable community.
Lucas Williams
I'll do you one better.
Acceleration bibliography:
>Introductions Greenspan: Capitalism’s Transcendental Time Machine Ireland: Poememenon MacKay & Avanessian: Accelerate reader Murphy: Ideology, Intelligence and Capital with Nick Land Overy: Genealogy of Land’s Anti-Anthropocentric Philosophy
>Land - work published on xenosystems - Teleoplexy: notes on acceleration - Kant, Capital and Prohibition of Incest - Circuitries - Meltdown - Machinic Desire - Dark Enlightenment
>Philosophy Althusser: On the Reproduction of Capital Bataille: Reader Baudrillard: The System of Objects, Mirror of Production, Symbolic Exchange and Death Bateson: Steps to an Ecology of Mind Beer: Platform for Change Benjamin: On the Work of Art in the Age of Mechanical Reproduction Bergson: Creative Evolution Bostrom: Superintelligence Brassier: Nihil Unbound CCRU: Writings Chardin: The Phenomenon of Man Debord: The Society of the Spectacle Deleuze: Difference and Repetition D&G: Capitalism and Schizophrenia, vol I and II, What Is Philosophy Dupuy: On the Origins of Cognitive Science Ellul: The Technological Society Fisher: Capitalist Realism Foerster: The Beginning of Heaven and Earth Has No Name Greer: After Progress Haraway: Cyborg Manifesto Heidegger: Being and Time, Basic Writings Hoppe: Democracy Kant: Critique of Pure Reason Marinetti: Futurist Manifesto Marx: Grundrisse, Capital, Fragment on Machines Mauss: The Gift McLuhan: Understanding Media Mises: Human Action Negarestani: The Labor of the Inhuman Noys: Malign Velocities Pepperell: The Posthuman Condition Plant: Zeroes and Ones
Jace Flores
Srnicek & Williams: Manifesto Rand: Introduction to Objectivist Epistemology Simondon: On the Mode of Existence of Technical Objects Stiegler: Technics and Time, Automatic Society Virilio: The Information Bomb, Speed and Politics Whitehead: Science and the Modern World Whitehead: Process and Reality Wiener: The Human Use of Human Beings Woodward: On an Ungrounded Earth Yuk Hui: Digital Objects and Metadata Schemes, The Question Concerning Technology in China, On Automation and Free Time, On the Mode of Existence of Digital Objects, Passing From the Digital to the Symbolic
>Blogs and other things Bryant: Larval Objects Hickman: Social Ecologies Land: Xenosystems Moldbug: Unqualified Reservations Nick Szabo: Unenumerated
>cotton maybe for chinese textile industry? that is still a big industry in china, right?
Recently saw an article stating that Chinese consumers had not changed their stance on wanting to buy iphones, the iphone fans still want iphones.
Maybe this will change as prices change? Are prices expected to rise?
Yeah... I guess I see that. Ronald McDonald and Colonel Sanders being friends... but these two are men that did heinous things, and I wouldn't think the Chinese would want them in their funny videos.
Internet culture LOVES hitler though, so maybe that's part of it?
(checked) >Fiction >Gibson: Neuromancer based. what if I just want to know how to do spreadsheets, maybe a little data science, and understand gov't and corp. debt, QE, housing market, bond market, interest rates, and what this whole DeucheBank crisis is?
> what if I just want to know how to do spreadsheets, maybe a little data science, and understand gov't and corp. debt, QE, housing market, bond market, interest rates, and what this whole DeucheBank crisis is?
Maybe ask a question about those and see if anyone can answer. Thing is depending what people have read they'll have different answers to your questions
Josiah Gonzalez
>Maybe ask a question about those and see if anyone can answer Does anyone have a book that can clearly explain... those things I said.
It all seems so strange, I just want it to make sense like chemistry or physics. I want A leads to B leads to C (except in case of D)
Economy is not like a physical science in that hard causal way, and I mean this as a descriptive statement (this itself is already prejudiced by what I have read)
You can find your hard causal graph economics if you just read Keynes and Fisher. It's just wrong in my opinion.
This Tyler Durden guy never has good news, never tells me anything nice. Never even gives me any advice except to be very worried because we’re teetering on the edge of the abyss. Some tips would be nice.
It's true he is permabear, but lets be honest this market has only gone up the past decade because of central bank's juicing the market. Who would have thought they could keep up the charade for so long?
Jace Rodriguez
Lots of people...
I don’t disagree with your premise, boomer fiscal policy has prepared us for a true JUSTing of epic proportion. But it’s like they say, the market can stay solvent longer than you can stay rational.
I expect the shit to REALLY hit the fan once the boomers can no longer suffer the consequences of their actions.
Justin Russell
what exactly happened last week? looks like shit
Carson Nelson
>I expect the shit to REALLY hit the fan once the boomers can no longer suffer the consequences of their actions
We were waiting for a market reaction to what effectively amounted to a nationalization of the financial firms in the USA, but the Austrians were wrong: price inflation doesn't automatically happen when you increase your monetary base. All the kikes in the banks took it and put it into securities and wages for real people stagnated.
The boomers were just lucky because they might have been fucked over by 2008-2009, but they would have doubled down in stocks after 2011 and they've been on the gravy train ever since.
Meanwhile, the deflationary effects of low-cost Asian manufacturing was always plowing ahead. Check the prices on TVs and what not from 2009 to now for proof. Anything that couldn't be imported has gone up though, like housing, medical care or legal assistance.
Anyway, the point is that it needed to be an external event outside of America's control for the inflation/recession to be triggered. The Chinese are sharpening their knives to retaliate against the USA, and since the global supply chain is so integrated it's going to be fucking ugly unless one of the players doesn't stand down.
If that happens a nightmare scenario could develop similar to the oil embargo of the 70s, but instead of oil skyrocketing it's consumer goods.
Gavin Edwards
>>as of Friday about 48% of all Euro bonds are negative EU strong, r-right?
I've read a lot of Austrians and tend to agree with them on economics. They're a great with money and a fantastic read if you want to understand the dynamics of economy when it's working under ceteris paribus assumptions in theoretical scenarios, something which Keynesian macro ignores. This way you can understand the effects of interventions for example into money supply better, once you understand the actual dynamics that are being infringed upon. So with reading Hayek's production theory you can better understand the wreckage Keynesian demand policies cause.
There's going to be pain likes the which the world has never seen when China will miss 50% of its populace due to lack of fertility.
Bentley Anderson
The schadenfreude I feel from watching a company that trusted bugmen get raked over the coals cannot be overstated. I hope apple has to file for bankruptcy and all the fucking boomers that put their saving in that company die in poverty. Make shit in America or fucking die.
Adrian Stewart
>Did you oppose them in any way? This dumbass bitch thinks we're partially culpable in any bad thing we didn't try to stop. Yeah, I'm sure everyone on the beach is guilty of a tidal wave hitting because they don't try to stop it. Like, I'm sure that's how guilt works. Imagine reading this fag like he's gonna tell you something.
Aaron Fisher
Why would we ever not impose tarriffs on developing countries? >hey, your cost of production is 1/10 of ours because your workers are paid shit and you pollute like there's no tomorrow, so let's make our domestic firms compete with yours on a level playing field The US government has been straight up sabotaging its own private sector for decades.
Luis Ortiz
Because sweatshop labour is how inflation has been tamed in the West since the 1990s, at least on imported goods.
Caleb Green
>we have to be able to designate any given firm "systemically important" so that we have the legal authority to have unelected bureaucrats with no stake in the company micromanage things and prevent people from doing what they want with their own property lol
Julian Long
lol. This is like in the Soviet Union where, towards the end, they didn't even try to make the propaganda believable and just published bullshit everybody know was bullshit.
Jayden Collins
>10 pictures of incremental price increases that will make you say "fuck having factories and jobs and shit"
literally every developing countries steals IP, just like how europe stole silkworms thousands of years ago. Also, american companies were doing fine for the last 10 years despite china stealing IP until Trump decided to start the trade war.
The byzantines stole silkworms, which the Chinese didn't invent. I dont think you understand intellectual property.
Kayden Long
you're right, IP that allows drug companies to sell insulin for thousands of dollars when its produced for pennies is what makes America great
Nicholas Ward
The fact remains the mueller report showed there was collusion and obstruction, impeachment soon.
Camden Wilson
The post you linked is more stupid than the image you attached
James Brooks
Democrats can't get an impeachment through the senate. So, if they fail then the president will come out of it even stronger. It's better for dems to not try to impeach Trump and leave Russia thing hanging over Trump while the election.
Gabriel Morgan
>sell insulin for thousands of dollars If you don't like it, you could just make your own ! oh wait...
;^)
If they were going to start impeachment, why wouldn't they have done it last week? how long does it take to draw up the 'ur being impeached' paperwork? They've had years now to draft it. I was very young for the Clinton one, I don't know what the time line looks like
Isn't the main problem being republican won't agree to impeachment no matter what sort of fact was being presented?
Jackson Brooks
>muh Russia Basically an admission by dems that they are too stupid and weak to protect the country from Russian meddling, and that the security apparatus of the USA when managed by the current establishment can be bypassed by a few Russian trolls on facebook.
Nope, that really doesn't paint them in a good light. In fact I would say being beaten fair and square by drummmpppfff the reality tv star playboy billionaire makes them look far less incompetent than their own fantasy scenario they constructed to deflect blame.
Carter Garcia
You also clearly dont understand research and development costs, and how they are important to IP. You should perhaps consider studying the subject in greater detail before embarrassing yourself further.
Noah Cooper
no one knows what the actual facts are behind the obstruction
The impeachment would have to be for obstruction, not collusion.
I'm sure certain blatant proof of obstruction could get enough voters to demand 'peachment that the repub senators might vote for it.
But yes, it would take only a hair of proof for democrats to vote for impeachment (some would straight vote for it today without any further facts presented), while republicans would need MUCH more convincing.
BUT there is some weird sub-text going on. If Trump wasn't colluding with Russia, but obstructed DOJ investigations into his personal matters and the matters of family and friends close to him, what could he have been covering up? Whatever is hypothetically 'there' might be something that the top democrats don't really want to go after him over.
Isaiah Morgan
though some companies do sponsor their own research and development, many drug research is paid for via taxes through the National Institutes of Health.
On top of that, many pharmaceutical companies buy the rights to old drugs and then reprice them at a much higher price, sometimes even 1000x the original price.
America is a country that prioritizes the profit of the rich over the wellbeing of the masses, with legal bribery (lobbying) ensuring anti-competitive behavior which would not occur in true capitalism.
Finally, there are tons of reports that American companies turn a blind eye to Chinese stealing in the first place - why? Because China allows them to do business. If they blocked the IP theft, the American company would actually make less money. "IP theft" is more like the cost of doing business with China.
Eli Martin
God I hate weekends Cant wait for tomorrow massive sea of red. Buy Puts
Justin Perry
Would peach mints be good for the market or bad? The only reason we was going up was because of Obama, and now that we have got the tariffs we're going down. So it would be good for the markets right?
David Ortiz
>tfw you know someone on that council they don't think highly off me, but still.
This is exactly what I've been talking about, we're facing a major profit squeeze and these junk corporate bonds and CLOs could be the first domino to fall. The second domino (or possibly the first depending on what happens in agriculture) will be small community banks. These banks are the ones that are allowed to use CLOs to meet their reserve requirements. Including CLOs made up of other small banks debt!
James Hall
>>tfw you know someone on that council >they don't think highly off me, but still.
did you give Mnuchin a disappointing dry footjob or something? you have to go back and make it right, they're going to crash the markets
This is the guy who produced The Lego Movie AND The Lego Batman Movie, you need to service him properly. Make sure those toes is moisturized
Cooper James
Not gonna say who obviously, but Mnuchin and his crony otting are the biggest greaseballs in the business
