China’s Sinking Online Lenders Seek Lifeline From Big Investors

https://www.bloomberg.com/news/articles/2019-05-07/the-rise-fall-and-possible-rebirth-of-china-s-online-lenders?utm_medium=social&cmpid%3D=socialflow-twitter-graphics&utm_content=graphics&utm_source=twitter&utm_campaign=socialflow-organic3

Can China’s peer-to-peer lending industry be saved?

The prospect seemed far-fetched just a few months ago, when P2P platforms were failing by the dozens and angry investors were protesting in major cities across the country. But after a nearly two-year government campaign to root out fraud and improve lending standards, a potential path to recovery for the world’s biggest P2P market is becoming clearer.

Industry insiders are betting that a handful of closely regulated players will emerge from the cull. They envision a revamped model — similar to the one adopted in America — in which P2P platforms match small borrowers with institutional money managers and banks, instead of individual savers. That would allow China to keep funneling much-needed credit to small companies, while at the same time containing exposure to investors who can bear the risk.

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Firefighting: A Plea for Discretion

https://marginalrevolution.com/marginalrevolution/2019/04/firefighting-a-plea-for-discretion.html

Firefighting, the new primer on the financial crisis by the all-star team of Ben Bernanke, Timothy Geithner and Henry Paulson (BGP), is a well written, short overview of the consensus position on the U.S. financial crisis. The book has a number of good lines:

…financial institutions, unlike other businesses whose success depends primarily on the cost and quality of their goods and services, are dependent on confidence. That’s why the word “credit” comes from the Latin for “belief,” why we say we can “bank” on things we know to be true, why some financial institutions are called “trusts.”

…the most damaging problem with America’s capital rules was not that they were too weak, but that they were applied too narrowly.

Risk, like love, will find a way.

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GF Securities Hong Kong Chief Tang Xiaodong Resigns From Firm

https://www.bloomberg.com/news/articles/2019-04-15/gf-securities-hong-kong-chief-tang-xiaodong-resigns-from-firm

GF Securities Co. said Monday the head of its Hong Kong unit has resigned from the firm, after losses rocked one of its hedge funds.

Tang Xiaodong, who joined in May, stepped down for personal reasons, GF Securities said in the Monday statement. The unit he ran, GF Holdings (Hong Kong) Corp., had set up a hedge fund that lost more than $100 million last year, primarily on foreign exchange trades, leaving it with negative capital.

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Beware of the alpha dad

https://www.economist.com/free-exchange/2009/04/24/beware-of-the-alpha-dad

I HAVE a friend who teaches at a posh private school on the upper east side of Manhattan. During the glory days of high finance she saw a man in an expensive suit dropping his five-year-old son off at school. “Play to win,” he told the child. “In this life, the best bleed the suckers dry.” We figured the saddest thing about this episode was that it may have been the only time the man saw his son all day.

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What are the most popular strategies used in high-frequency trading?

Pair Trading – Trade two stocks which naturally track each other an example could be Coke and Pepsi, make money when they fall out of line on the idea that they will have to revert back to tracking each other. This is a common mean revision strategy used by hedge funds and might not exactly fit high-frequency trading however it still fall under algorithmic trading.

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The Official Bankster Dictionary

The Official Bankster Dictionary

In the underground world of banking, doing wrong means doing right, up is down, and left is right. I happened to stumble upon a secret version of the Bankster’s Dictionary the other day when I was visiting a bank. I’ve posted some of the terms below that were contained in the Bankster’s Dictionary to help you understand bankster language.

US Federal Reserve = European controlled private bank.
Central Bank = Counterfeiting Ring Leader
Criminal Underworld Currency Counterfeiters = Competitors that must be arrested and jailed.
Savings Account = Devaluation Account, Cash Advance for Gambling Division


Gambling = Banking Primary Business Line
Fraud = Banking Secondary Business Line
Las Vegas, Macau, Atlantic City = Model for running business operations.
Inflation = Currency Devaluation through anti-free market manipulation of interest rates.
Fractional Reserve System = Fractional Expansion Citizen Bankruptcy System, BSE (Biggest Scam Ever)
Futures Markets = Manipulation Casino, SkyNet Three-Card Monte Scam
Pablo Escobar, Joaquín ‘El Chapo’ Guzmán, The Ochoa Hermanos, Yakuza = Cash Cows
El Subcomandante Marcos aka Delegado Zero = Anti-poverty activist that must be wacked and shut up
Independent Media = Terrorist
Mass Media = Allies
Allen Stanford, Bernie Madoff = Occasional Patsies and Necessary Fall Guys to appease the public’s ire at us.
Stock Markets = Manipulation Casino, SkyNet Three-Card Monte Scam
Commercial Investment Firm Rating of “Buy” and Hold” = Contrarian Indicator to SELL!
Commercial Investment Firm Rating of “Sell” = Contrarian Indicator to “BUY!”
Barbarous Relic = USD, Euro, Yen
Beta = Empty Statistic meant to impress naïve investors
Loan = Usury
USD, Euro, Yen, etc. = Fantasy Digital Idea made real by banksters to control humanity
Women’s Liberation Movement = Expansion of Tax Base from only men to men AND women
Income Taxes = Wealth Transfer from citizens to owners of central banks.
Gold = Bankster Kryptonite
Silver = Bankster Kryptonite
Truth = Banker Kyrptonite
Lies & Deception = Bankster Standard M.O.
Free Markets = Fairytale story like Santa Claus, Easter Bunny and Tooth Fairy to be taught in business schools worldwide.
Drug Lords and Underground Crime Syndicates = Provider of global banking liquidity and huge year-end bonuses
Parasite = Favorite insect
Capitalism = Dead system that was killed by Central Banking but false scapegoat we can blame when we cause economic crashes and despair
Miscellaneous Charges = Small Monthly Charges to siphon off money from bank accounts that customers will never notice or complain about
Computer = Vehicle to rig all stock markets and commodity markets with HFT programs that execute trades not possible if executed by humans and if executed in a clear and transparent market.
Boom = Unsustainable price distortions caused by interest-rate manipulation and market rigging.
Bust = Opportunity to make money twice as quickly as in a boom!
Market Crash = Engineered event to ensure the peasants will never accumulate enough wealth to rebel against us.
Rising Markets on Mondays or Tuesdays into OpEx Fridays: Ruse to sucker more people to go long in order to fleece them by the time Friday arrives.
Declining Markets on Mondays or Tuesdays into OpEx Fridays: Ruse to sucker more people to go short in order to fleece them by the time Friday arrives.
Presidents and PMs = Best puppet and marionette allies to be rewarded handsomely after they leave office (see Tony Blair and the current POTUS)
Superior Judges, SCOTUS = Made Men
War = Double Bonus! Opportunity to devalue money at faster rate than during peace time and opportunity to accumulate more wealth from interest charged on war appropriations.
Universities, Colleges and MBA programs = Re-education camps to indoctrinate students into fairytales of non-existent free markets, non-existent capitalism, and lies about how stock markets, real estate markets and economic cycles really work.
Economic Journals and University Tenure = Carrot dangled in front of economic professors to ensure that they repeat to the world the “official” party line.
Key Economic Indicators = False manipulated statistics designed to dumb down citizens into believing economy is recovering even as we increase their economic suffering
Ben Bernarnke = Shakespearean clown.
Conspiracy = Best Word to Discredit Truth about the global monetary system when the truth somehow escapes our censorship algorithms and makes it to the mainstream media we control.
Machiavelli = Role Model
Ivy League Schools = Indoctrination Camps for media representatives and professors we will send to brainwash other global regions into believing our propaganda
CNBC = The Cartoon Network.
Goldman Sachs = Rookie Farm Camp for global criminal banking syndicate.
World Bank & IMF = Banks used by Western countries to impose crushing debt on developing nations to stunt their growth.
Bailout = Transfer of Wealth from citizens to us.
TBTF = Lie used to ensure we can perpetuate fraud.
Quantitative Easing = Currency Devaluation.
Fiat Currency = Worst Possible Idea
Propaganda = Daily Financial News Feed
Compartamentalization = Process to keep good people working as cogs in the machine within the banking industry ignorant of the fact that they are inflicting massive harm upon society.

If others of you have had the good fortune to stumble across this secret Bankster Dictionary like me, please feel free to post more Bankster glossary terms below.

Would you credit it? How money is lent into existence

From Dr Michael Reiss.

Sir, The phrase “credit crunch” has been widely used to describe the freeze in lending that can occur at the tipping point of economic bubbles (for example “Spanish banks turn off the credit taps“, August 12). This is, however, misleading because it perpetuates the myth that “credit” is somehow fundamentally different from money.

Using this phrase allows the public to carry on believing the false notion that there is an essentially fixed pool of money out there and the only problem is the banks’ willingness to lend it out.The truth is, credit is money. Due to the magic of fractional reserve banking, virtually every pound we spend is money that has been lent into existence. This is true even if we have no borrowings ourselves. During a so-called credit crunch, there is an aggregate preference for paying back loans over taking out new ones. This shrinks the amount of money in the economy. The opposite of lending money into existence occurs, that is to say paying back money out of existence. The fraction of people, or even politicians, that are aware of this fact, is frighteningly small.

A shrinking money supply has a host of unpleasant side effects, as anyone who lived through the Great Depression would testify. During the period 1929-1933 the money supply fell by a third.

Michael Reiss,

London NW6, UK