MADRID | By Luis Arroyo | The shadow of deflation looming over the euro zone economy have seemingly gone away on Friday. The statistical office Eurostat anticipated an estimated 0.9% yearly inflation rate, two percentual points under last October registers. However, being afraid of deflation is not a nonsense because next banking recapitalisation points that credit is to tighten.
WASHINGTON | By Pablo Pardo | The party is about to end. It is a party that has lasted six years. According to Bank of America/Merrill Lynch, during that time, the approximately 173 central banks that exist worldwide have lowered interest rates 520 times and pumped in approximately $33 trillion into the world through different mechanisms, some of them extremely unconventional.
MADRID | Dennis Lockhart, president of the Atlanta Federal Reserve: “Why couldn’t we grow by a higher rate? Because people still are in the middle of a deleveraging process, which makes it near impossible that consumption takes off again.”
While emerging countries moderate interest rates to keep their currencies favouring exports and economic activity, the euro is appreciating. Does it makes sense?
LONDON | The People's Bank of China eased the cost of credit with a 25-basic point cut on the benchmark interest rates, unlike its counter-parties in Europe. The Chinese central bank set the 1-year lending rate at 6.31 percent from 6.56 percent, and issued new conditions under which retail banks are allowed to offer loans, now with a 20 percent discount instead of the previous official 10 percent. Is the…
NEW YORK | One of the current most visited exhibits at the Museum of Modern Art in New York is not dedicated to pop-art nor surrealistic sculpture but to mortgages. Foreclosed calls the home ownership American dream into question and shows how the suburban development has been not only environmentally aggressive in some states but financially unsound. “Many of the low-income people who bought at the height of the bubble…