What a difference a 0.25 makes
ECB
The European Central Bank must act as a last resort lender, or else
ECB’s nefarious attitude: Mr Wolf is right
By Luis Arroyo, in Madrid | In case you needed tangible proof of the harmful role the ECB played in the crisis, in the FT, Martin Wolf writes an open letter to Trichet’s imminent successor to the presidency of the ECB, Mario Draghi. The letter is an excellent article that convincingly explains why the ECB should stabilize the debt markets of solvent countries such as Italy and Spain, which are the…
ECB's nefarious attitude: Mr Wolf is right
By Luis Arroyo, in Madrid | In case you needed tangible proof of the harmful role the ECB played in the crisis, in the FT, Martin Wolf writes an open letter to Trichet’s imminent successor to the presidency of the ECB, Mario Draghi. The letter is an excellent article that convincingly explains why the ECB should stabilize the debt markets of solvent countries such as Italy and Spain, which are the…
BoE, ECB prepare field for the unstoppable Greek default
At Bankinter, analysts expect markets to register a further downward move in the coming weeks. In fact, they believe that markets right now “are probably too excited by the prospects of a coordinated and positive outcome for the euro zone. In reality, the only tangible factor one could be led by to optimism is the fact that the ECB has some unconventional measures taken, but these are not decisive in…
Time to tell the taxpayer tough truths: why and how to save the euro
Circulation velocity of money, from 1.1 to 0.59: it’s big time the ECB, Fed react
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…
Circulation velocity of money, from 1.1 to 0.59: it's big time the ECB, Fed react
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…
JP Morgan looks at a leveraged EFSF Bank but sees a Eurobond
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,…
Barclays smells an ECB interest rate cut
Many in the euro zone would be happy seeing this Barclays forecast becoming true, not the least in its peripheral shores. “We have revised our ECB projection and look for the ECB to lower the main policy rate by 25bp at its meeting on 6 October, and to widen the interest rate ‘corridor’ back to +/-100bp, which would entail lowering the deposit facility rate by 50bp to 0.25%. In turn,…