Warren Buffett Invests $5bn in Bank of America … Billionaire investor Warren Buffett has thrown Bank of America a $5bn (£3.07bn) lifeline, capping an extraordinary week for the US’s biggest bank. … “Bank of America is a strong, well-led company, and I called Brian [Moynihan, Bank of America’s chief executive] to tell him I wanted to invest in it,” Buffett said. “I am impressed with the profit-generating abilities of this franchise, and that they are acting aggressively to put their challenges behind them. “Bank of America is focused on their customers and on serving them well. That’s what customers want, and that’s the company’s strategy.” – UK Guardian

Bailout for Greece Falters Over Demand for Collateral … Euro-zone policy makers on Thursday appeared no nearer to settling a dispute over Finland’s collateral demands in exchange for participating in a €110 billion ($158.6 billion) bailout for Greece, raising concerns that the Mediterranean nation may default. Markets have grown more worried about the potential for a Greek debt default amid an apparent lack of progress in resolving the collateral issue this week. Finland, meanwhile, shows no sign of backing down. … Euro-zone officials have indicated they are exploring other forms of collateral, such as state property or other noncash assets. But this option would be anathema in Greece, especially as many of the government’s assets are already earmarked for privatization. – Wall Street Journal

China’s Biggest Banks Post Record First-Half Profits as BofA, RBS Stumble … China’s five biggest banks posted first-half profits that surpassed the total of their 14 largest U.S. and European rivals, highlighting the Asian nation’s financial power as other economies falter. … China’s banking regulator has also asked lenders to increase capital buffers and accelerate loan collection schedules for local government debt as it seeks to avert a banking crisis following the record $2.7 trillion credit boom that began in 2009. … Globally, banking stocks have fallen too much, Wan said. Chinese banks may begin to recover once policy makers contain inflation and relax lending constraints, he said. – Bloomberg

Warren Buffett Invests $5bn in Bank of America

Billionaire investor Warren Buffett has thrown Bank of America a $5bn (£3.07bn) lifeline, capping an extraordinary week for the US’s biggest bank. … “Bank of America is a strong, well-led company, and I called Brian [Moynihan, Bank of America’s chief executive] to tell him I wanted to invest in it,” Buffett said. “I am impressed with the profit-generating abilities of this franchise, and that they are acting aggressively to put their challenges behind them. “Bank of America is focused on their customers and on serving them well. That’s what customers want, and that’s the company’s strategy.” – UK Guardian

Dominant Social Theme: The “experts” know better. US equities are cheap – and bank stocks in particular should be bought.

Free-Market Analysis: This is just another mainstream maven playing one of Wall Street’s mainstream memes: Buy American stocks and hold them for eternity. The truth of the matter, at least as we humble elves see it, is that Buffett has in fact made his entire fortune on the back of a Federal Reserve fiat money scheme. It is the entire fleet of fortunate 500 companies that are built upon this edifice – and the top tier, in particular, that Buffett has made a living out of owning. We question the “analytics” involved with Buffett’s purchase of BoA and think it has more to do with a full-court press by establishment money power to shore up public confidence at a time when US equities are under severe pressure – and rightfully so, especially financial stocks. Buffett appears more and more to be a tool of the elites in these tumultuous days rather than a top-tier investment guru – but, heck, maybe that’s what he’s been all along.

Bailout for Greece Falters Over Demand for Collateral

Euro-zone policy makers on Thursday appeared no nearer to settling a dispute over Finland’s collateral demands in exchange for participating in a €110 billion ($158.6 billion) bailout for Greece, raising concerns that the Mediterranean nation may default. Markets have grown more worried about the potential for a Greek debt default amid an apparent lack of progress in resolving the collateral issue this week. Finland, meanwhile, shows no sign of backing down. … Euro-zone officials have indicated they are exploring other forms of collateral, such as state property or other noncash assets. But this option would be anathema in Greece, especially as many of the government’s assets are already earmarked for privatization. – Wall Street Journal

Dominant Social Theme: Those pesky Greeks must have something of value we can take. After all, it was the average Greek’s spendthrift nature that caused this whole mess.

Free-Market Analysis: The whole Greek debt debacle is simply sad. Here we have one of the most historic places on earth – the home of modern Western civilization – and it is being shredded by its neighbors to the North. What a great game this EU experiment is turning out to be for the Anglosphere power elite calling the shots from behind the scenes! The Greeks accepted an endlessly inflatable monetary system, which enabled the government to grow so large it has now destroyed the Greek economy and increasingly its sovereignty. The EU has been a disaster for the average Greek; other than the private accounts of the Greek bureaucrats who benefited from endless opportunities for graft, it has served the interests rather well of international money power. They will now end up owning the resources and historical artifacts that make up the country of Greece. It’s population, well… one could simply refer to them as slaves.

China’s Biggest Banks Post Record First-Half Profits as BofA, RBS Stumble

China’s five biggest banks posted first-half profits that surpassed the total of their 14 largest U.S. and European rivals, highlighting the Asian nation’s financial power as other economies falter. … China’s banking regulator has also asked lenders to increase capital buffers and accelerate loan collection schedules for local government debt as it seeks to avert a banking crisis following the record $2.7 trillion credit boom that began in 2009. … Globally, banking stocks have fallen too much, Wan said. Chinese banks may begin to recover once policy makers contain inflation and relax lending constraints, he said. – Bloomberg

Dominant Social Theme: China’s “wise leaders” are better at central planning than EU and American counterparts. Their form of capitalism is so much more modern!

Free-Market Analysis: This article continues to play out the meme that China has somehow figured out the ideal way to lead us all forward into a modern era of state controlled capitalism. Do you “buy it”? The Chinese banking sector is riddled with inaccuracies and inconsistencies. It is more Potemkin Village than a modern economy. It is a façade, a shell, a promotion. Anyone who has spent any amount of time doing business in China can attest to that. As for their “miracle” economy, we believe it to be on the brink of a major inflationary collapse. The amount of malinvestment in that country is simply staggering. Entire empty cities have been constructed; fancy shopping centers stand idle; skyscrapers are built but not populated. Why believe the good news about China’s banking sector when so much else of what supposedly happens in that great country is obviously a lie?