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Gold replaces AAA
The problems with Greece are not an isolated case. Solving the Greek crisis without a reflection on a long chain of monetary and economic errors would be a complete waste of money. Our political leaders should look far beyond the Greek problems and evaluate their economic and financial policies over a period as long as ...
Rood licht: 2011 voelt aan als 2008
De voorzitter van de Europese centrale bank (ECB), Jean-Claude Trichet, heeft gezegd dat het licht op rood staat: "On a personal basis I would say it is red," Trichet told reporters when asked what color the European Systemic Risk Board's traffic light warning system was displaying in relation to the debt turmoil.Trichet had net de ...
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 ...
Greece: saving the Summer season but not the economy
Yesterday's narrow confidence vote is a first step for Greece to let the austerity plan approve by the Greek Parliament. In our view, Greece and Europe were faced with a catastrophy: a Greek default in the midst of the Summer, and worse the midst of the Greek touristic season. Such a disaster can still happen. The EU needed however ...
CCC and the battle for cash
Are we at the beginning of a China Credit Crunch ? We have been posting on the issue on other occasions in a different spotlight, namely the fact that official monetary policy so far had no significant impact on the Chinese financial sector in terms of curbing credit growth (see copper financing tool). Over the past couple of days, ...
Serving Stavros Café Viennois ?
"Reprofiling", "structured default", "volontary re-investment of proceeds" , we lately have been avalanched by numerous euphimisms on something very straightforward : Greece and Europe are in dire straits, a very precarious situation to say the least. On the Greek restructuring and how to organize it, the battle over semantics is ...
Greece : Who will pay the Ferry-man ?
The next article appeared in De Standaard and expresses the views of Geert Noels & Econopolis on the euro-zone sovereign debt crisis : De banken: risktakers moeten mee betalen. 'Tot voor zes maanden was de aanpak van het Grieks probleem: steeds meer geld op tafel leggen. Maar langzaam maar zeker evolueert het in een andere ...
Bill and the Big Short
Bill Gross is in a tight corner. Having announced his big short position on US Treasuries a couple of weeks ago and being accused of being a "bond vigilante", it seems Mr Market is turning his back on him and making him loose a considerable amount of money for Pimco. So lately we spot some laughs on various blogs, just for the ...
Trichet nails it, too late ?
In an interesting speech addressing the London School of Economics (13/06), JC Trichet elaborates on the pros and cons of monetary and economic policy in EMU, this in comparison with the US. Some slides of his presentation, and in particular 1, tells a lot. The picture below just depicts to what extend convergence on ...
Operation "Merlin" and "Glass Steagall Bis"
On Wednesday, UK banks were in the spotlight for two main reasons. First of all, the preliminary disappointing results of operation "Merlin", a deal between the UK government and the large banks on bank lending targets. Second, the large private banks' reaction to the ring-fencing initiatives of the Independent Commission on ...
















