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| After research on some of Italy’s weakest banks, we visited friends in the Aosta Valley. |
While Elisabeth and I have been traveling to some of the world’s primary focal points of economic risk — and beauty — our readers have been busily providing their comments and questions.
Richard L. comments: “Excellent visual and oral leaves an impression that written words lack. Keep it up. I can see you are enjoying yourself.”
Thank you! This is one of the most fascinating voyages of my lifetime. We wanted to see our son, Anthony, who works with a tech start-up in Tokyo.
But instead of the typical U.S.-Japan roundtrip, we bought a round-the-world ticket that lets us make a series of stops along the way for RRR&R — rest, relaxation, research and reporting back to you.
From Italy, I sent you a video update on the dire state of Italy’s largest banks and upcoming political turmoil. (Click here to view.)
From Turkey, my video delves into the millennial East-West conflicts that continue to escalate today. (Go here to watch it now.)
Next Monday, brace yourself for the shocking realities of one of the most powerful and supposedly “stable” nations on the planet — Saudi Arabia.
But no matter where I am, the single best place to leave your comments and questions is below each of my articles. (For today’s, use this link.)
In response to my video on the dire state of Italy’s largest banks, Branko asks “What are the top 5 biggest and safest banks in the world?”
Here are the global banks with assets of $4 billion or more that earn our highest Weiss Safety Ratings:
| Name | Country | Total Assets ($bil.) |
Weiss Safety Rating |
| Samba Financial Group | Saudi Arabia | 62.7 | A+ |
| American Express | United States | 158.8 | A |
| Discover Financial Services | United States | 88.1 | A |
| Al Rajhi Bank | Saudi Arabia | 86.2 | A |
| Bank Central Asia TBK | Indonesia | 46.0 | A |
Or, if you prefer banks that are even larger ($200 billion or more in assets), our Weiss Safety Ratings are a tad lower, but still in the “excellent” category:
| Name | Country | Total Assets ($bil.) |
Weiss Safety Rating |
| Industrial & Commercial Bank of China | China | 3,546.3 | A- |
| China Construction Bank | China | 2,966.8 | A- |
| Bank of America | United States | 2,185.5 | A- |
| UBS Group AG | Switzerland | 1,008.3 | A- |
| BOC Hong Kong Holdings | Hong Kong | 305.5 | A- |
Want to restrict your banking to U.S. institutions? No problem. We have recently released our Weiss Safety Ratings for the highest-rated largest banks in the U.S. based on their financial data of June 30, 2016:
| Name | City | State | Total Assets ($bil.) |
Weiss Safety Rating |
| Morgan Stanley Bank, NA | Salt Lake City | UT | 135,608 | A- |
| Ally Bank | Midvale | UT | 114,554 | A- |
| Goldman Sachs Bank USA | New York | NY | 160,666 | A- |
| UBS Bank USA | Salt Lake City | UT | 54,680 | A- |
| Signature Bank | New York | NY | 36,547 | A- |
Again, our Weiss Safety Rating of A- is still considered “excellent,” meaning that the bank has maintained a conservative stance in its business operations and underwriting practices as evidenced by its strong equity base, high asset quality, steady earnings, and high liquidity. While the financial position of any company is subject to change, we believe that all of the above banks have the resources necessary to deal with severe economic conditions.
Eagle495 writes: “Just returned from cruise to England and Norway. Most of the successful Italians that I met now live in Great Britain or the U.S. Sadly, the EU never had a minimum economic success level requirement before membership. Had there been one, none of the PIGS would have been granted membership until they cleaned up their balance sheets.”
True. But one of the great ironies of Europe’s fiscal crises is that its two largest economies, Germany and France, were the first to break their own debt rules. Both countries led the charge to establish the rules under the EU’s Growth and Stability Pact. Both countries ran deficits that exceeded the maximum 3% of GDP. And both agreed to rig the system so they wouldn’t face sanctions.
In sum, Germany and France stood shoulder to shoulder as they paved the way for future violations by PIGS countries and for new debt disasters still on the near horizon.
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Chuck B. broadens the discussion with this comment: “The entire world economy is dependent on debt. If one large national economy collapses because of that dependence, it is almost certain that the collapse will quickly spread to all nations.”
This fear is the primary reason why the world’s most powerful central bankers and finance ministers have also been breaking all their own rules.
They know darn well the dangers of bank failures and debt defaults. They know their political careers would be toast if they didn’t do absolutely everything — and anything — to prevent them. What they don’t know — or don’t seem to care about — is the long-term consequences of their actions.
This is why U.S. Treasury Secretary Hank Paulson cooked up a massive bank bailout plan in 2008, literally dropping to his knees to beg for its passage in Congress, warning bluntly that, absent the bailout, the world’s entire financial system would melt down.
This is why, on that same day, former Fed Chairman Ben Bernanke embarked on the wildest money printing binge in American history … and why his successor, Janet Yellen has kept it going.
Plus, it’s why the Bank of England, the European Central Bank and the Bank of Japan have galloped down the same primrose path.
Crisis after crisis, year after year, our leaders have faced the choice of either …
- A market-driven housecleaning of bad debts, or …
- A Herculean government effort to sweep them under the rug.
Almost invariably, they have chosen the latter.
Almost invariably, they have decided to prolong-the-agony, compounding the debt disease, destabilizing the global economy, and undermining the foundations of democracy. (In my “Next Black Swans” video, I show exactly how.)
Each successive debt earthquake has been accompanied by stronger seismic waves than the previous. So don’t be surprised if the next one follows the same pattern.
Just remember that predicting their precise source and timing is beyond the capability of the most advances sciences known to man.
Walter S. says: “Your articles are great. But you seem to be avoiding the forest and discussing the trees. How about the world money cartel? What stranglehold does it have on Italian and U.S. banks? Is this issue too hot to handle?”
No one can deny that, throughout history, powerful individuals, families and alliances have enjoyed oversized influence. But history also proves that, despite their power, they are no more capable of preventing a debt crisis — and no less vulnerable to the ultimate justice of market forces — than the elected officials they corrupt.
Frank E. asks “Do you think the U.S. government in desperate times will grab our IRA and our checking account money? Is money in a private safe better than money in a bank account? I love your research.”
In a way, the government has already taken your money away. By wrestling interest rates down to the mat and holding them there for eight long years, the U.S. Federal Reserve has effectively grabbed nearly every penny of interest you could earn on safe savings vehicles. Ditto for Europe and Japan.
Government takeover of your principal, however, is another story entirely. Yes, in an extreme scenario, I can imagine desperate politicians taking some small steps in that direction. But even if they do, it will backfire before it reaches the point of outright confiscation.
Why? Because more than any other borrower, the U.S. government depends on savers, investors and free markets to raise the funds they must have to stay solvent.
“Where would one invest cash holdings?” asks Fred G. “With so many banks in bad financial condition and the threat of negative interest rates,” he says, this is a particularly challenging dilemma for anyone building cash.
We currently assign Weiss Safety Ratings to a total of 5,969 U.S. commercial banks, savings banks and S&Ls, plus 6,017 credit unions. Among them, 2,234 merit a rating of D+ or lower (weak), 4,214 get a rating in the C range (fair), 4,337 are rated in the B range (good), and 1,201 are A- or better (excellent).
That gives you a total of 5,538 banks and credit unions to choose from in the A or B categories. Separately, we also rate 280 global bank holding companies, among which 128 are Bs and As.
Among them, the highest rated large banks are in the lists above.
None of this, of course, helps you overcome the issue of dirt cheap interest rates. But as always, the return of your money is a higher priority than the return on your money. And this very exceptionally long and extreme period of near-zero interest rates, will definitely not last forever.
Good luck and God bless!
Martin
Dr. Weiss founded Weiss Research in 1971 and has dedicated his entire career to helping millions of average investors find truly safe havens and investments. He is Chairman of the Weiss Group, which includes Weiss Research and Weiss Ratings, the nation’s leading independent rating agency accepting no fees from rated companies. His last three books have all been New York Times Bestsellers and his most recent title is The Ultimate Money Guide for Bubbles, Busts, Recession and Depression.
{ 95 comments }
Dear Martin,
Can you tell me something about the safety or otherwise (ie the ratings) of the main banks in the U.K?
Many thanks!
COMPLEXITIES ?
How about large Canadian Banks that operate in the U.S. such as Toronto Dominion Bank, North America ? My understanding is its current S&P credit rating is AA- ( one of the highest ratings for a bank). TD Bank was rated AAA in 2007 before the financial crisis.
Do Bank credit ratings predict bank strength or safety in a financial crisis or are they largely irrelevant to your other rating criteria? Some maintain Bank Credit Ratings are ONLY relevant to bank bond holders. Is that necessarily true?
Can I get AN UPDATED LIST OF SAFE BANKS IN THE USA? HOW DO I ORDER AND WHAT IS THE COST? I LIVE IN NORTH CAROLINA.
Why do you want that list???? Bank deposits are insured by the FDIC to something like $250,000 each and $500,000 per couple structured correctly . What is going on here. You should be concerned with inflation rate robbing you of 4% loss every year after year on the value of your deposit not “safety”. That for the individual is a NON issue.
If the US government goes belly up as expected then so does the
FDIC
@GeorgeK. Insurance sound great. But, FDIC has nearly no money and certainly not enough to cover all insureds. You will wait in line to collect a fraction of what you have.
@GeorgeK. Poppycock. You are handing out false hope. Even Warren Buffett said he would take his money out of banks if they charge for holding our money (i.e. Go to negative interest rates) as foreign banks have done. The FDIC almost went bankrupt already in 2009. You crow about it having $25B in the insurance fund. The problem is there is $9294B (i.e. $9.3T) in deposits in US banks. There’s also $300,000B ($300T) in derivative exposure that US banks are exposed to since Clinton ended Glass-Steagall. Please don’t tell us not to worry since the FDIC is backed by the full faith and credit of the US. The total of all US currency in circulation is just $1.1T. The banks and politicians have destroyed the financial system. They have made us all, including our grandchildren, debt slaves.
I am more than a little surprised Canadian Banks were not mentioned.
Banking in Canada is widely considered one of the safest systems in the world, ranking as the world’s soundest banking system for the past six years according to reports by the World Economic Forum. During the peak of the 2008 Financial Crisis, the Bank of Canada, along with the Canada Mortgage and Housing Corporation and the US Federal Reserve provided up to $114 billion of liquidity support to Canadian banks. Of this amount, $69 billion was part of the CMHC mortgage insurance program, a facility set up in 1954 to handle such situations.
Bank Name Also Known as Institution No Market Capitalization CAD,B[19] Employees (FTE) Revenue,B Net Income,B Total Assets,B
Royal Bank of Canada RBC 003 104.5 80,000 30 7.6 825
Toronto-Dominion Bank TD, TD Canada Trust 004 94.8 79,000 23 6.3 811
Bank of Nova Scotia Scotiabank 002 77 83,000 21 6.7 744
Bank of Montreal BMO 001 47 47,000 13.7 3.2 542
Canadian Imperial Bank of Commerce CIBC 010 38 42,000 12 2.5 352
Where can we get list?
Really care . I suggest you don’t as it matters none at all.
U.S. Bank rating list needed
I am surprised average depositor is so interested in this article as the FDIC insurance on deposits insures to $250K each deposit. So who really cares.
Safe bank for deposit some savings ?
this isn’t a comment. Rather it is a question. I would like to know the safety of the Manufacturers and Trust Banlk in the US
Each and every bank out there is SAFE .
I not sure what to make of this global colapse of the derivative market. 500 trillion they say will effect just about everyone in every corner on earth ….kinda damn if you do and damn if u dont and a point of no return …..some how i know it IS fixable….but then again not all have the collective intelligence. ………corrupted minds never will …….so please explain if we are going back to the dark ages or the elite just want more money and to hell with everyone else ..????
Physical gold in hand is the safest account you can possibly have. If you’re making 0 to 1% plus factor in inflation, gold actually pays more than any account as it covers inflation. And do you really trust any gubenment guarantees about your money safety? Seriously? go ask the Cypriots or the Greeks how safe was/is their money if they can’t draw more than a pittance against any high amount of deposits they may have. Stay insured, keep money in gold outside the banking system.
Let’s review what happened in 2008 when the derivatives on Housing Loans collapsed the system. Those loans were the result of the US Government programs borrowing $Trillions to unqualified buyers. Nothing more. We do not have anything like that Quality in Derevitives today . Don’t let the scare tactics frighten you!!!
@GeorgeK. You sound like you work for the banksters. What happens when Deutsche Bank finally craters? They back much of the derivative market and are linked to nearly every major bank including the US and all central banks.
The next bail out/bail in may start over the first weekend of Oct when the renminbi is added to the IMF’s global currency basket. The globalists will finally have their on world currency in SDR’s. The central banks with zero and near zero interest rates will need bailing out like the big banks did in ’08. Another 10% of real value will be taken from the dollar and thus the unknowing American public.
I am in the uk and read this. Uk banks how do they figure?
. I am so glad these people have asked these questions thank you, i am worrying about the same. Its all our hard earned money.
Carey
Deposit your money in Ireland and pay your taxes there. Apple gets a preferred rate of from 1% to .005%. Surely it is available to you as well??
Martin,
I disagree with your saying that Bank of America and the others are a safe bank. It and other banks have too much money invested in deritatives. I believe these banks with high deritivies will fail. The federal Reserve will not bail them out and under the Dodd Frank law the banks have the right to take our money to pay its debts since the money we deposit into these banks ar an unsecured loan to that bank.
RC
i agree. bank of america is very corrupt. they give a lot of money to the vatican. when they first opened in NYC, they where called the bank of Italy. the mafia did all there money laundering through them. chase/jp morgan, are just as ad. look how they got fined for stealing peoples money to invest in there own gain.
BOA and all banks are SAFE. Just don’t exceed the FDIC insurance limit. Who really cares as a deposit in these banks shrinks at the real inflation rate of 4% per year LOST . Better find somewhere else to make that up as this has more importance than anything else in conserving your retirement money. And,,,, forget those ridiculous US Bonds as rates rise those too will shrink in value and already have .
As an EU resident, what world currencies can I park my savings in other than $$$$ or €€€€???
The Thai baht and their stock market the SET are holding up quite well.
Gold
Thanks Martin,I cannot argue with you,I would lose,but what a mess we are in,and our governments are run by intelligent,responsible people,next time Im voting for a monkey.A monkey would do a better job.These as—oles promise you everything and just —-up everything,just makes me sick,these people should be held responsable after their stay in office with penalties.
A lot of your readers hold most of their cash in brokerage money market accounts at Vanguard, Fidelity etc, How would the safety of these money market accounts compare to bank accounts?
Now each and every deposit in Bank is Insured by FDIC insurance fund which has grown to nearly $1Trillion Not the US Govt as some on her note . Vanguard Fidelity is really Safer as it counters the inflation rate that will Steal your money. Currently at Around 4 % actual. So these accounts overcome the Inflation factor. However they have no Insurance whatsoever in that sense Banks are safer Leave your money in the Safest bank and come back 12 years later and about 1/2 will be GONE to inflation Put your money into Fidelity or Vanguard and if things go right you may double your money or triple it. I am flabbergasted at these postings on here questioning the Bank safety for individual depositors. No question your money deposited in a bank is safe as possible . Why the fuss about Bank Safety ??????
GeorgeK, I have read your responses and I have to believe your in the banking business. Your figures on derivatives and inflation need to be updated, because both are far worse than last time. Agree with you on bonds.
The current debt the US is in, combined with a Fed rate increase and China coming online Oct.1st with IMF will put a hurt on us pretty good. If the fragile stock market crashes with us in such a bad state, we will be broken. It will be like the depression all over and we know how banks and government were then. Looking at the future is not hard to see when you have red flags all over. Looking at the past will tell you what was needed and what worked.
Dr. Weiss- In your column today (05SEP16) “The World’s Safest Banks, plus … The World’s Greatest Threats”, you did not discuss the option of putting or leaving your cash in US government bonds (I bonds, EE bonds, etc.). These should be as secure as a US dollar bill (please don’t laugh!). Almost as liquid as a bank, low interest but a little better than bank interest. We are very conservative financially, do not speculate, and expect “black swans” may swoop in at any moment. We are retired and relying on social security for our normal daily expenses. Most of our “nest egg” is in those US govt bonds. What are your thoughts?
Unless the interest rate on these investments is greater than the inflation rate, you are effectively investing at negative interest and losing money over the long term. That is why people are attracted to the stock markets, where there is a chance, if your choices are good, of making a profit.
As for safety, even governments, when push comes to shove, are known to default in order to save themselves, and the politicians in charge. The U.S. debt can NEVER be repaid, except through hyperinflation, which would be a political disaster. The alternative is default, and it will eventually happen; probably resulting in the collapse of all world economies, since the Dollar is still the dominant world currency. Remember, ALL currency is fiat, even when gold backed, since, when you come down to it, the value of gold is also fiat based.
All currency is, after all, merely a convenient substitute for barter.
Chuck B:
Personally, we are more looking at “rolling defaults” or serial defaults ( Specific cities or states, like Chicago or Ill. and/or their public employee pension funds). Each time a new ” debt bomb” goes off it probably will roil the markets, bond and/or stock, and cause a volatility spike, as well. So, we have Great Uncertainty.
However, it creates opportunities for nimble traders but probably will result in huge market swings in specific asset classes. Retail investors will run to the safest asset classes, cash or gold. Politicians will no doubt try to “fix things” with even more new regulations ( Its all they are capable of ).
Needless to say, things won’t get any better on account of government “helping”- just harder for everyone. As New York Traders at Morgan Stanley ( John Mack) once famously said to one another about their clients in the 1980’s : ” Rip their Faces Off “. Should we take this statement quite literally too? We do live in an age of irrationality and stupidity, at large.
Consider your loss of 4% per year to inflation minus your bond rate and plus taxes you pay on interest . Bad idea.
All of what you say are helpful but does nothing
To protect us against bad governments and when and if you have a solution please pass it on
Until then you need to address issues that have
Far more reverence
Buy gold Fred and tuck it under your mattress. It will feel a little lumpy when sleeping at night but you will know it will be there in the morning and worth money.
How do the 6 major Canadian banks rank in your safety ratings? I was surprised to not see any of these banks in your lists of the world’s safest banks. I had a belief that these banks were some of the safest in the world, and rode through the last financial crisis virtually unscathed.
Home Bias ?
How about companies like Ameritrade?
I appreciate your analysis. I believe othe readers also.
Is it possible to have the 5 most perform ant credit unions. Sincerely
Just wondering if the large mutual fund groups are safe..i.e. Fidelity, Vanguard, T Rowe Price?
Which Banks do you condider safe or credit unions
GLOBAL TRADE CANARY IN MINE
We have experienced a drastic slowdown in global trade evidenced by huge declines in the Bulk Dry Index ( Maritime Tonnage) , Frontline Stock declines since 2007, and the recent bankruptcy of the sixth largest shipper in the world, Haijun of South Korea. The recent EU tax rule revisions concerning Apple in Ireland will further adversely affect global investment and trade. In response, Apple’s CEO Tim Cook plans to repatriate millions of dollars back to the U.S.A. and has set-aside funds to pay the Federal Taxes, as well.
If this was not enough, the G-20 are now in effect a Global Tax Authority, sharing confidential banking information on all retail bank customers around the world with each other’s Tax Collectors starting on Jan. 1, 2017. This and FATCA (2010) are causing global private investment to wither on the vine. So, we are now looking at the very real prospect of a Global Depression on the Horizon. Clearly, we have not seen real deflation as yet, but its certainly coming. Politicians are clueless too.
A future Federal Govt. push ( Hillary) into unlimited defense spending and war, an all-out Federal Infrastructure Spending Bill ( 2017) and select tax increases on the “rich” will increase the annual Federal spending deficits and national debt in a time of flat tax revenues ( Not a Flat Tax ). NOTHING THE POLITICAL CLASS OR THE GOVERNMENT CAN DO WILL STOP WHAT IS ON THE WAY.
HARD TIMES FOR SOMALI PIRATES ?
Even the Somali Pirates ( and those in the South China Sea) may be experiencing their own depression of sorts, as fewer merchant ships are passing by their territory these days. Most of the ones that do are now staffed with armed guards, many former military equipped with fully automatic heavy weapons.
Craig – do you also see the TransPacificPartnership playing into the scenario for 2017?
I don’t think many people think about the number of people on government subsidising. Stopping that will cause half the people to suddenly realize they are going to be going hungry. It will be chaos. The government cannot take care of that, much less pay $250,000 insurance claims on money in the bank lost. With such poor handling and meddling of our government, we have kicked the can down the road so many times, the can is the size of an old grain silo and full of problems.
It’s really hard for me to believe your findings. Big does not mean safe. Most if not all of these banks still play in derivatives market. I see creative accounting trying to absorb losses slowly. Holding bad housing loans four to five years past bankruptcy dates. Refusing to take possession of property until they foreclose on the property. I think the Federal Reserve and the Banking Sector especially big Banks are full of smoke and mirrors.
Gary
Add to that the Subprime Auto loans and the $1 Trillion in college loans and oh what a huge mess the banks have sown .
These have ZERO bearing on the average FDIC Insured Bank whose insurance fund has grown to near 3/4 of a Trillion Dollars. Why dig into Bank safety? Lots of other more pressing problems out there.
I worked in the mortgage business 2 years….DISGUSTING….the loan companies cheated and lied to people,,,desperate to re finance their mortgages to try and get out of debt. The interest they paid and the fees were a RIP OFF..!!!…Although I was told to sell interest only mortgages…..with a balloon payment in 10 years,,,,I tired to talk the customer out of it and get a fixed interest mortgage. Most of the customers were assured the wage increases would continue and they could afford the balloon in 10 years. I wonder how many lost their homes?….I gave up my home after loosing my $50,000 per year job. I tried for years to get a similar position,…but as wages dropped to minimum wage…I realized I could no longer keep my home and gave it back to the bank after paying the mortgage for 20 years…..You are right…the bank avoids taking possession and I stayed in the house for over 12 months….NOT Paying a mortgage…till I found a low income apartment that I could afford….With todays minimum wage jobs..most people need TWO jobs to afford an apartment. You can’t afford a house making $18-25,000 per year making min wage…that’s what you earn…I made $18k per year at Sears in 2011…that’s why I left…can’t live on $18kper year…
Do you think losses due to NIRP will be able to be written off US income tax?
The first creative question I’ve seen!
ANYTHING “WACKY” IS POSSIBLE
Is Gold really a safe(r) alternative to banks or banknotes ?
Gold is said to be “manipulated” or artificially held below its intrinsic worth. This is the line of all gold-bugs, who practice a form of “religion” known as “goldbugism”. They always maintain year after year the next bull market in precious metals is just ahead and gold is headed for $10,000 an ounce, says financial expert and author, Jim Richards ( Himself a Lawyer). The demise of the dollar is all but certain. The million dollar question is the t factor or WHEN ?
However, there is reasonable doubt that gold will remain liquid in the future if things get near that bad. The Federal government has tried to tax it but so far, no gold dealer I know issues any Form 1099-B as yet, but that could easily change. The hunt for extra tax dollars by all Western governments will certainly intensify in the years ahead. In fact, many valuable items could lock-up wealth for an undetermined period of time and be unsellable.
Even your home you spent a million of today’s dollars on may not be marketable at anything close to its cost basis at some point. Some assets could become frozen, except cash. Stock markets might even be temporarily closed in an extreme crisis, as in 2001. Even cash is not immune to capital controls, as we saw in Greece and Cypress. The Federal Government could establish ATM withdrawal limits for bank depositors.
You could even be prohibited by Executive Order (EXO) from wiring or taking any valuable outside of the country, including run-of-the-mill gold coins. Arbitrary civil asset forfeitures is a definite possibility in the future. Roman soldiers sacked their own citizens in the search for revenue during the period when Rome was falling. History repeats. All the authorities have to do is declare you a “terrorist” or drug dealer and then freeze everything you own, including your house. All options are available to those in power.
Anything wacky is possible by those in political power in America and at any time. We really do not know the future. The best prediction is uncertainty and risk. So, it pays to diversify and not make too large a bet on any one investment class.
Obama has already made the ground work for the seizures you mention. Go to the White House web page and read…” Executive Order 13603″….This gives the Gov’t, the power to seize….EVERYTHING…..in the name of a “national emergency”….They can even tell you where to work and what to do. Don’t like it?…..They have the 13 FEMA “detention camps”….ready and waiting for…..er…..terrorists?…or is it dissidents?
You have lost your rights to your own property…you just don’t know it….
Hi Martin,
I am surprised to see some banks you have listed as safe that have very large exposure to derivatives?
is the total bank rankings list available? i an interested specifically in Texas.
looking for list
Fred, I agree that Dr. Martin’s investing advice is helpful in alerting us to the potential of global financial disaster however; it does nothing to offer a solution or prevent it from occurring. NO ONE CAN! Geithner, Paulsen, Bernake, Yellen, Abe, Draghi, Ingves, Largarde, G20, etc. can only “paper over” the problem with their version or brand of fiat monopoly money. Consequently, the global financial system MUST crash under its weight of unsustainable debt before there will be any hope of a solution or a recovery or a reinvention of a stable global financial system based on something of believable value verses our collective sheep-like wishful thinking and believing in the “full faith and confidence in our respective worthless and ultimately useless fiat currencies”. The only real questions of importance going forward are “When does our full faith and confidence in our fiat currencies finally leave the building?” (aka a Black Swan event) and “Are you fully prepared to effectively cope with the unavoidable and guaranteed ensuing pain and chaos?” and lastly, “When will citizens of the world realize that their elected officials must be limited to only ONE TERM in any elected office, to hopefully ensure that their current dynasties of crony capitalism, corruption, bribery and political favoritism can at least have an definitive expiration date before a new, less-entrenched crook takes over?”
Other than these three questions, the rest is just newsletter fodder, political speculation and a continuing stream BS from talking heads, which only serves to feed and entertain an uneducated, complacent, ill-informed and unaware population as to what is truly coming the pike. Am I being too negative or too realistic?
amen….read the books :” throw them all out”….and ” advise and dissent”…the first is an expose of the corrupt gov’t Congressmen…who make up laws to protect them selves…and to enrich their own pockets. the second book is by senator Abourezk(sp?)…the first Arab American…voted to the US Senate,,,from SD. HE had one term in the Senate…he was so disgusted by what he saw…he did not want a second term….my favorite quote from the book….” The Senate…..100 people with their own interests, to heart”….That about sums it up. Any change on the horizon?….Not with “dumb and dumber” running for the Presidency…..Maybe the Gov’t should open up the suicide centers like in the movie…”Soylent Green”…or give out the poison capsules as portrayed by the movie….” On the Beach”……DOn’t laugh….We have already seen one Sci Fi movie come true…..” Big Brother”….!!!!
Tim Ziifle, Finally, a truthful and painfully realistic take of the inevitable state of affair’s staring at one and all, commenting on this thread. The Banking Puppet-Masters (and others) continue to shear the wool from those sheep that are misinformed and in denial. The dreadful global Ponzi Scheme continues, but the crony capitalist politicians will never have the guts to take one for the team as Bernie did. You are being quite realistic.
I read not long ago that several of the biggest banks had assets ranging from just under a trillion up to 4 or 5 trillion dollars. The problem is that every one had around 50 trillion in derivatives. Those are essentially the same type things that caused the 2008 Crash.
I do not really trust ANY bank but am forced to chose and use at least one.
Unfortunately all those available in my area are NEVER listed with any of the data as above, so I know very little about their safety.
I believe!
Understood that a new world Currency is soon to be announced by the World bank and accepted by the IMF . How is that going to affect the dollar and our savings . I am afraid the dollar will be devalued seriously . Thus is this a real danger and is it coming soon ?
I would like to ditto Peter Andrin’s question re Canadian banks (10.02 am). Living north of you this is very important to me.
Dear Martin
In your reply to Chuck B,you have said that invariably our leaders have chosen to sweep bad debts under the rug,
I would like to know if anyone in any country has tried to buck the trend ?has he/she survived ?
My understanding that RBC Bank (canada & US), Bank of America, Citibank,
JPMorgan & Chase, and two other big banks in the states are going to be
charged for the phony loans back in 2009 like they have already done in
Ireland where 3 CEOs head of banks who did phony loans also got fined
and sent to prison for 3 years each….
Thank you, your reports are always a pleasure to read. Keep enjoying your time and I’ll look forward to the next update
Dr. Weiss, do the Weiss Ratings for these banks account for derivatives exposure?
MOST AMERICANS ARE GETTING TOO MUCH INFORMATION. I THINK YOU ARE THE SMARTEST OF THE SMART. FROM READING ALL THESE COMMENTS, AMERICANS ARE FEARFUL OF THE FUTURE. OUR GOVERNMENT IS CORRUP, WITH TWO SETS OF LAWS. ONE FOR THEM, AND ONE FOR EVERYONE ELSE. NO ONE SEEMS TO HAVE ALL THE ANSWERS. NO COUNTRY TO RUN AND HIDE IN. WE ARE ALL TRYING TO FIND THE BEST ROAD TO TRAVEL. THAT SAID, JUST GIVE OR SELL US YOUR BEST THOUGHTS. THANKS
I will echo the other comments concerning your “safe” banks that have huge exposure to derivatives. When reading your safe bank list I was shocked to see Bank of America. Aren’t they included in the banks that now have four times the derivatives as in the last crash? And weren’t they in danger of failing then without the government bail out?
Yikes . The worlds biggest bank Deutsche Bank couldn’t meet the physical demand of gold from its client Xetra and yet when they tried to repatriate Germany’s Gold from the U.S. they were told it would take eight years.
The gold is being sent to Iran for payment in the Iran “deal”. Also money and other non transparent valuables. We only have so much gold available and since the government is not accountable to the people, we do not know what we have now.
Are you ant relation to the old Weiss Shirt co. in NYC ? Have fun, keep us up to date, thanks for sharing. However, I disagree with some of your “safe” calls.
Hi Martin,
Since you are in the Middle East, why don’t you also go to Iran?
A friend of mine who is Jewish says that on his around the world trip it was easy for him to get a visa to visit Iran with his U.S. Passport.
He says that he wished he had spent more than four days there because of what he saw and learned: he could not believe how big a Jewish population there is and attended services at the biggest Synagogue and met many business people who spoke perfect English.
Despite what we hear from our news media, the country is very pro business and modern. With the lifting of U.S. Sanctions they are anxious to do business with U.S. Companies.
Many Thanks, James Hudson
THE SOCIAL & POLITICAL SAFETY CONSIDERATION
I notice and hear curbside conversations when I am out in my front yard from time to time. Its usually the same players and the same topics of conversations: Other People, in this instance me. There are three moderately high net worth households on my street: the Prosers next door ( retired ), the Frey’s ( recently retired) and myself ( sole survivor of immediate family).
Guess who these clowns were referring to of the three possible households? : Me. They do this in a give-away style: ” He has money”. I do hear this repeated now and then around here and there are only three possibilities in my intimidate neighborhood. The specific name is never verbally, but the inference is quite clear and loud (audible).
The neighborhood talkers ( 3 residents) are all Liberal Democrats who subscribe to the “Tax the Rich” value system. In California, its a cultural mindset of the majority. If public pensions start to go bust some day (CALPERS), it may become unsafe for anyone who is not a known quantity ( with Liberal and Big Government Bona fides). A suspected Republican would be in danger of a sort of anti-wealth domestic terrorism.
So, even the mere millionaires are outnumbered and outvoted every time. Social safety? I keep a low profile and drive 20-year old vehicles. No ostentation. Only if you live in a remote rural area in the mountains in a place like Lake City, Colorado or Dell, Montana are you separated enough from crowds of people sufficiently to be truly safe. ( more than one tank of gas from any major city).
If another Black Swan breaks out, a rural redoubt may be essential to your physical security in the future. The problem is avoiding buying into the real estate (second home) bubble. Log Cabins (900 square feet) for $400,000 or more is definitely a bubble. In Dell, Montana, its more like $1.25 MILLION with 813 Acres and no water rights.
http://hallhall.com/ranches-for-sale/properties/medicine-lodge-mountain-cabin
Actual value of a small 20-year old log cabin in a seasonal mountain location like Lake City, Colorado ( not a ski resort): about $150,000. Bubbles are EVERYWHERE to some relative degree. So, your dollar is really not worth much after so much QE. The Fed already got there first.
As long as you look in state’s that are using the same ideology as California, it will be high. It’s a jungle out there in big cities and time to get out. Instead of a cabin, you might look at an earthship (Earthship.com).
Great to read your comments and those posts of your readers. Please do address the issues of derivatives held by banks both in US and Canada, specifically the comment posed by reader RC this morning about Dodd Frank laws permitting these banks (in America at least) to cover their losses since the Fed won’t be able to put out all the fires. Am I over reacting, or does Janet Y and her successor just print more funny money?
I think all the derivatives in the Worlds Banks are like dominoes and when one bank falls it will be a rapid chain reaction through all the worlds banks and that will make the Lehman moment look like a molehill in comparison .
Hi Martin,
Read most of the previous comments—very interesting.As a Canadian I also would like to know more about the BIG 5 cdn. banks—how about it !
Thanking you in advance.
Denis
Good Labor Day Martin,
Commentary by you; and comments by readers show we all need sound answers, now.
I have read warnings of impending monetary collapse from leaders of investment companies. But noone offers concrete answers.
Should we be in bonds? Should we stash our cash under the mattress?
Gold is at 1,400+A SHARE?
We look to your wisdom. JR
Yes, Canadian banks, another one for ratings on the Canadian banks.
A theme that will be played out repeatedly is: LIVING WITHIN MEANS and BEYOND MEANS. One can LIVE WITHIN MEANS FOR EVER and none can LIVE BEYOND MEANS for long. That includes governments, nations. US govt has been living beyond means for more than three decades ( barring some exceptions) and US as a nation has also been living beyond means for more than 3 decades. When the music stops, it will end badly.
How safe is DBS bank in Singapore and do you think I or executor would have any trouble getting it out? Thanks.
Gee, a lot of folks feel very comfy with their 250K of FDIC insurance. Well, the FDIC isn’t a private outfit, it’s just another arm of Uncle Sam. I’d bet that their total assets are well under 1% of the total deposits that they are insuring. If the odiferous effluvia strikes the fan, how can they possibly bail out all those deposits? Can they print enough paper money to fix the problem without a hyperinflation?
Bank of America A-?…What are you smoking?!!….BOa is the worst violator of SEC guidelines. They have paid the US gov’t HUNDREDS of Millions of dollars in fines…!!!!
I would not trust BOA with Monopoly Money..
I once worked for a company who sold a software program, that helped SEC regulated institutions remain Compliant to SEC guidelines……this includes BANKs…I contacted everyone of the 13 or so BOA Compliance Officers….not one was interested in looking at our software. They would rather pay HUNDREDS of Millions in fines….than pay $2500 for a software to keep track of regulations and Continuing Education requirements. All BOA does after paying these fines is increase their rates to the customers…..SOME A- rating…!!!
The Too Big To Fail Banks are more Leverage than 2008.
JP Morgan: $70.4 TRILLION
Citigroup: $63.5 TRILLION
Bank of America: $55.7 TRILLION
Goldman Sachs: $53.5 TRILLION
Morgan Stanley: $46.7 TRILLION
TOTAL Derivatives Exposure for Top 5 Banks in the U.S.: $290 TRILLION
These banks and some European banks such as Deutschbank have been
financially insolvent since 2008. They are kept alive by the Central Banks
and the Shadow Banking System.
When the market crashes again the banks will not be bailed out but
Bailed-in. So… if a large bank fails in the US, the FDIC steps in and
takes over, replacing management, and works to shrink the
bank through liability reductions and converting debt into equity.
In other words… any liability at the bank is in danger of being revalued
should the bank fail. And guess what? Deposits are considered liabilities
according to US Banking Law and depositors are creditors.
So… if a large bank fails in the US, your deposits at this bank would
either be “written-down†or converted into equity or stock shares in the
company. And once they are converted to equity you are a shareholder
not a depositor… so you are no longer insured by the FDIC.
Protecting your Cash & Deposits
Move your checking & savings account from the Big Banks
to a small local bank or Credit Union.
Close your Safety Deposit Box at the Bank, because they
are now liabilities of the bank and can be confiscated.
Purchase a safe and put 1-3 month cash reserves in it.
Your cash reserves will bridge the credit system failure,
when ATM’S & Credit Cards will not be accepted at stores
or gas stations.
Buy US Mint 1oz Silver Eagles and store in your safe.
The Silver Eagle is the most recognized bullion coin in
the world and can be used to purchase goods & services
during a credit crisis.
I have read experts how tell you how to look at any bank and see if they trade or have Derivative exposure. It is said stay away from those banks. Bank Of America has trillions in derivatives exposure . With that kind of exposure would they be disqualified?
Thanks
Whoa there, Nellie.
Using your own ratings website, I just came up with far different ratings for Discover Financial Services. And an even wore rating for Discover Bank.
What gives? And if those ratings don’t match…can I trust the others mentioned in your article? (starting to wonder…)
Martin. I am a current paid up subscriber. I want to know what your rating is on Cititbank where I have a major part of of my cash and investments. But I cannot find your ratings for Citibank on the ratings you published on your email to me. Please advise.
Timothy F. Preece. Email: Kesosauqua@aol.com.
I have been a subscriber over the years.
Please see my request on you ratings for Citibank. I love your publications and you have have been very helpful to me. Thank you. Tim
Is there a bank outside of the US that is rated A or B where I could open an account without having to travel there?
On September 5 you mentioned rating on various Banks, Saving & Loans and Credit Unions, etc. Is there a list that I can access so I can check on the banks that I do business with?
WHAT IS YOUR RATING ON THE “STATE BANK OF TEXAS”?
Do you have a rating on STATE BANK OF TEXAS?