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House of Pain - Fed to the rescue, again
New figures on US home foreclosures were recently released and for some, it might even induce some feeling of optimism. So the worst is behind us ? Not yet, and certainly not as far as the FED is concerned. But let's first take a look at some basic stats.
The risk free carry, part II : Money for nothing and the bonds for free ?
Earlier this week, we mentioned the rally on high yield European short term government bonds in anticipation of Wednesday's ECB LTRO auctioning (Long Term Refinancing Operation). Markets had expected something in the range of 300-400 bio EUR. The final result was 489 bio EUR spread over 523 bidders, on average almost 1 bio EUR per ...
Play the "safe" EMU govie carry trade
After November's hectic month on all sorts of government bonds, ranging from PIIGS over to Belgium over to credits globally, December has kicked off under a different Zodiac sign. In fact, the latest auctions on government bonds have staged various rallies on different countries.Now the question would be : Has the Belgian state ...
Guest Post : Bonussen, beter, best?
De laatste maanden betoogden misnoegden in Brussel, Antwerpen, Leuven en Oostende tegen de inhaligheid van de banken. Het “Occupy Wall Street” protest startte deze zomer in New York en vertakt zich nu wereldwijd. Bonussen, zoals de 600,000€ voor de Dexia- CEO Pierre Mariani in 2010, liggen zwaar onder vuur. Zijn bonussen altijd te ...
"You may leave your message..."
"...after the gunshot", replies the answering machine of Herr Flick. Today, a newspaper from progressive left origin had the audacity to bundle all the reactions - or rather lack of reactions - from various members of the board of governors from Dexia and the Communal Holding. The summary is quite a revelation.
On the ...
Hoe de fall-out na Dexia voorkomen?
Negen punten verdienen de aandacht van het beleid om verdere schade na Dexia te voorkomen. Want de financiële crisis is met de nationalisering van Dexia niet achter de rug.
Lees hier de column die Geert Noels publiceerde in De Tijd.
"Dear Jean Claude"
A "Dear John" letter is more than often an ominous sign : "I love you but, it's not easy, difficult circumstances, hope we can still be friends, etc etc ; A dear "Jean Claude" letter apparently is even worse. Yesterday, some blogs pointed to a particular "farewell letter" towards Jean Claude Trichet, presiding his last ECB monetary ...
European banks: the endgame
On the international blogosphere, economists and market watchers are trying to give an answer as to why the US (along with the central banks of Great Britain, Japan, and Switzerland) is providing dollars to European banks that have lost their ability to access dollar capital markets? John Mauldin has the following answer and ...
15 Most Heavily Taxed Countries In The World
Barry Ritholtz is de meest invloedrijke Amerikaanse financieel-economische publicist-blogger-journalist. Hij was gastspreker op de recentste editie van de Econopolis Economic Encounters (8 juni), met een zeer gesmaakte uiteenzetting over de globale economie, de toestand in de VS, de rente, de dollar, de nieuwe media, en zoveel ...
Een 'banken-ontbinder' voor Europa
Geert Noels stelde hier op vrijdag 29 juli voor om een Europese bankenliquidator op te richten.
The EU should be able to close down insolvent banks. Banks should be orderly liquidated when they are in insolvency… Some banks should become smaller, some zombie banks should be closed down in an orderly fashion. A ...
Basel, SIFIs and New Capitalism
For some months now, the Basel Committee is pondering on how to tackle the issues of systemic risk. It seems the outcome might well be something along the lines of "agreed it's moral hazard but it's OK".End of April, Reuters leaked a Bundesbank initiative to set up a so-called SIFI list (Systemically Important Financial ...
Draghi zoals Riccardo Ricco
Uit Knack:U twitterde: ‘Beseffen ze bij de ECB dat het een fout signaal is om Mario Draghi te benoemen tot directeur?’ Waarom? Noels: "Mario Draghi is zo kort na de financiële crisis niet de figuur die breekt met het verleden. Hij had een vooraanstaande functie bij investeringsbank Goldman Sachs in de periode toen de crisis ...
Rating Agencies - Charm Offensive
Rating agencies : when the music plays, you most of the time don't need them around and when the music stops, you really don't want them to be around. Yesterday, after years of not being welcome to the party, Moody's invited itself once again and guess what : They even gave a round of free drinks !
...
The Third Mandate and Stabilit
Speaking on CNBC at a FDIC sponsored forum last week, FED chairman Bernanke was asked how quantittative easing could be called a success in view of rising interest rates and commodity price spikes. His answer revealed that the FED now officially admits having a third mandate : "Our policies have contributed to a stronger ...
US Banks were also insolvent in the 80-ies and 90-ies
Experts almost unanimously are pushing for a nationalisation of the banking sector, especially in the US. As this decision will determine to an important degree the next decade, it might be interesting to look at some counterarguments before deciding. The case for nationalisation can be
summarised
:
...
Going beyond the final frontier...
In a rare appearance before national broadcast, Ben Bernanke yesterday on CBS gave comment on the state of the economy and his intentions further up the road. Apparently it took 1 bad number - November pay-rolls released last Friday - to ring the alarm bells inside the FED. Just 1 month after QE2 has been announced, it seems QE3 is ...
Exit-strategie voor Belgische bankenredding ?
De regeringsvorming zit in het slop. Tot op vandaag heeft ons land echter geluk: er is geen nieuwe financiële crisis, en de aandacht van Europa of buitenlandse investeerders voor de Belgische situatie is erg gering. Ons land moet echter opletten, want de begroting en de garanties voor de redding van de Belgische banken vragen om ...
Hervorming EU-toezicht op financi
Vanaf 1 januari 2011 gaat het toezicht op financiële instellingen ook op Europees niveau gevoerd worden. Tevens komt er een Europese Raad van Systemische Risico's, een orgaan dat moet toezien op systemische risico's. Dat laatste zal voorgezeten worden door de voorzitter van de ECB, Jean-Claude Trichet.
Positieve punten
...
Bank stress testing : "Wasserdruck !!"
One of the scarce hilarious moments in the motion picture "Das Boot" concerns the "usual" exercise of emergency diving after an enemy alert. When the U-boot goes beneath 250 m, the infrastructure crumbles and shakes with bolts flying around. The chief engineer smiles to the propaganda representative aboard - having cold sweat and ...
Pictures of the week: Goldman on the Hill
* Blankfein (Goldman Sachs) defends speculation as helping investors to hedge risks* Senator says: this is like gambling , it has nothing to do with farmers trying to hedge insecurity
Bottom line: Wall Street is worse than Vegas:
* the bookies are betting against their own house
* they bet against ...
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