By Luis Arroyo, in Madrid | The Ralphanomics blog has a post on velocity of circulation of money that brings a very interesting intuitive graph: how the velocity of money (M1) has changed since the crisis began. Against this variable, there is a comparison to the 1930s Great Depression –the black line at the right angle, between 1920 and 1932. The velocity of money is simply the GDP divided by money…
One would think it’s all rumours and half-baked drafts more akin to belong to a neverending script than to the global finances’ reality, but that doesn’t prevent financial institutions from making a serious effort to analyse possible and probable results of their implementation. JP Morgan says “The possibility that any important news/measure comes out of some of the many meetings/summits that are planned for the next week and a half,…
From Banco Santander, a briefing on yesterday’s events to enlighten our Wednesday: “It could not be otherwise, the euro zone (EZ) was trying to build a firewall for well-known reasons. And it is not only to stop the markets’ downturn, it is also associated with an attempt to cut the cost of the bailout for the taxpayer. “Late on Tuesday the Financial Times (FT) revealed, by quoting sources within the…
From Banco Santander, a briefing on yesterday’s events to enlighten our Wednesday: “It could not be otherwise, the euro zone (EZ) was trying to build a firewall for well-known reasons. And it is not only to stop the markets’ downturn, it is also associated with an attempt to cut the cost of the bailout for the taxpayer. “Late on Tuesday the Financial Times (FT) revealed, by quoting sources within the…
Whether it is a much needed voice in these days of near-panicking headlines or simply right forecasting only time will tell, and this means probably October or December at the longest, but Bankinter Análisis somehow on Monday managed to wrap up its not exactly uncommon message of ‘please, mind the gap and stay away from the markets’ to investors in a much calmer accent than most notes we read at…
Whether it is a much needed voice in these days of near-panicking headlines or simply right forecasting only time will tell, and this means probably October or December at the longest, but Bankinter Análisis somehow on Monday managed to wrap up its not exactly uncommon message of ‘please, mind the gap and stay away from the markets’ to investors in a much calmer accent than most notes we read at…
From Citigroup analysts : “Ultimately, the decision taken by the Fed was in line or even went beyond what was expected. The reinvestment of MBS debt by more than $20bn per month was good news for the real estate market, which still shows no clear signs of recovery. The IMF itself has already included in its financial stability report the possibility of going ahead with haircuts in the agencies’ debt…