J.P. Morgan’s Dimon Warns HUGE Crisis Lurking

J P Morgan's Dimon Warns Next Crisis Will Bring Even More Volatility

Wall St. - Who will be swimming naked next time?

LONDON (Market Watch) you ain't seen nothing yet, when it comes to market wreckage from a financial crisis, according to J P Morgan's Jamie Dimon. In his annual letter to shareholders, the bank's chief executive warned " there will be another crisis" - and the market reaction could even be more volatile, because the regulations are now tougher.

It's Going To Be Worse? 

He argued the crackdown on the financial sector, added to more-stringent requirements for capital and liquidity, will hamper banks' capacity to act as a buffer against shocks in the financial markets. Banks could become reluctant to extend credit, for example, and less likely to take on stock issuance through rights offering, which would essentially create a shortage of securities. Read More

Man the Lifeboats! 

Fed Tightening Can Trigger Market Crash - No Kidding

 



Don't Be Surprised

 If This Is The Start Of A 

Stock Market Crash ...

 

Business Insider

 


Stocks are tanking again. 

The sudden dives in recent weeks have taken the tech-heavy Nasdaq down 7% from its highs and the S&P and Dow about 3% from their highs.

Drops like that are no big deal. 

But some signs suggest that this pullback — or another one sometime soon — could get much more severe.

Why?

Three basic reasons:

• Stocks are still very expensive
• Corporate profit margins are at record highs
• The Fed is now tightening
•  

Let's take those one at a time.

First, price.

Even after the recent drops, stocks appear to be very 
expensive.

The chart below is from Yale professor Robert Shiller. It shows the cyclically adjusted price-earnings ratio of the S&P 500 for the last 130 years. As you can see, today's P/E ratio of 25X is miles above the long-term average of 15X. In fact, it's higher than at any point in the 20th century with the exception of the peaks of 1929 and 2000 (you know what happened after those).

Read More

Lots of Talk Out There

 

Alibaba Cash Crunch Hits China Banks - Vampires Blamed???

China Banks Drained by Funds Called Vampires Seek Rules


By Bloomberg News 

It has been labeled a “blood-sucking vampire” by a prominent commentator on state-run television. Executives at China’s largest banks have called for regulators to curb its rapid expansion.

The focus of this ire is Internet financing, specifically Yu’E Bao, the fund pioneered nine months ago by Alibaba Group Holding Ltd.’s online-payment affiliate Alipay. Its ease of use, involving a few taps on a smartphone, has drawn deposits from 81 million customers, more than the population of Germany, as they chase returns higher than China’s banks can offer. The total exceeded 500 billion yuan ($80 billion) as of Feb. 28, according to the official Xinhua news agency, double the amount reported by Alipay in mid-January.

At least six other technology firms, including Baidu Inc. (BIDU) and Tencent Holding Ltd. (700), have embraced Internet financing with similar products offering returns as high as 10 percent and threatening to drain more cash from China’s banking system. Bank executives, unable to stop the outflow of their cheapest source of funding because interest rates on comparable deposits are fixed by the government at 0.35 percent, are calling for more regulation, saying that lack of oversight and risks related to account security, yield volatility and liquidity management threaten China’s financial stability.

Read More

Dow Crashing to 6000?

Dow to crash to 6,000 by 2016

By Andrew Moran

A lot of contrarian investors expect the Dow Jones Industrial Average (DJIA) to crash at some point in the near future because of a variety of factors, including the paucity of sound fundamentals, the Federal Reserve’s implosion and the numerous bubbles currently formulating and growing.

One financial author recently told CNBC that he thinks the Dow will likely climb to 17,000, a 3.6 percent increase from this week’s 16,396, in the next several weeks but then crash back down to around 6,000 by 2016, a 63 percent plummet. (Read More)

NOT Looking Good - By Comparison

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