A short piece in Alphaville that I just came across caught my eye today: “[Beware] the rise of the collateral swap. Also known as a long-dated repo. The premise was simple. Prudent institutions flush with top quality government bonds (or even cash) wanted to secure a better rate of return — on a still relatively …
Guest Post – Hawkeye – Who will be holding the bag next time? Read More »
There’s a good article today in the FT about how the Chinese central bank is tightening the loop holes that have allowed China’s banks to lend and borrow off balance sheet. “Tao Wang, an economist with UBS, said the significance lay not in the additional tightening, but rather in the central bank’s determination to stop lenders …
It’s Jackson Hole time again. The best of the best are gathering to, as MarketWatch describes it, ‘brainstorm’ ways of dealing with the economy. God help us. MarketWatch goes on to exclusively reveal that, “The biggest puzzle of all is the sudden demise of the U.S. recovery. Sometimes there is no satire nor irony strong enough. Two rounds …
Why did the shares in European Banks and BoA collapse? Read More »
Tomorrow expect further massive drops in European bank shares because of this just in from Reuters : (Reuters) – Austria, the Netherlands and Slovakia said on Thursday they want collateral on loans to Greece after Finland secured a commitment, raising question marks over a second bailout agreed for Athens last month. It does a little more …
So far for the last two weeks all the panic and bad news has been about Europe, It was our turn after America hogged the lime light for so long with its shameless showing off over its debt ceiling. But I think next week America might be about to muscle back to centre stage. Two things …
There are days when the bourses fall heavily. And there are days when they jump off a cliff. Today is looking more like the latter. The catastrophic slaughter of European bourses, led by Europes’ Insolvent Banks, continues. London -5.3%Paris -4.2%Frankfurt -5.07%All the rest heading to or already above 5% Banks are …
The Swiss central bank and the FED combine to drive Europe down further. Read More »
Just a quick thought on the Franco-German proposals for financial harmonization. I think the heart of what is being proposed is the financial transaction tax. Much of the rest, while Germany might like to daydream, is being mentioned, I think, to provide cover for the Transaction tax. Let people object to all sorts of ideas …
The European Financial Transaction Tax – A ‘What if" Read More »
Today the news will be all about Sarkosy and Merkel having yet another meeting. Neither leader has a firm grip on power within their own country, Merkel’s is certainly slipping and Sarkosy is slowly becoming a Vanity Fair version of Berlusconi, and neither has a grip on the broader debt fiasco upon which they bob …
I think we are going to see European bank funding, both short term (overnight) and the coming wave of bond/debt to be rolled over, becoming intensely political. The political battle is between Washington DC and Berlin, with the ECB in the middle. This battle will start once the spiralling funding needs of Europe’s private banks …
This headline in MarketWatch this afternoon has got to be one of the most fatuous in financial history. NEW YORK (MarketWatch) — U.S. stocks soared on Thursday after a surprising fall in jobless claims curbed worries about the economy. I’m really supposed to believe that because the US jobless claims decreased by a whole 7000, …
