Keyword: ecb

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  • Euro ‘house of cards’ to collapse, warns ECB prophet

    10/18/2016 10:41:46 AM PDT · by Lorianne · 5 replies
    Against Crony Capitalism ^ | 17 October 2016
    The European Union is eroding from its periphery and it is collapsing in pieces even in Germany and France. It is highly fragile and if real recessionary winds blow the EU will start to crumble at a faster pace. We say the faster, the better. The bureaucrats are clinging to the dream, but the dream has morphed into something very different for many in Europe. We can’t say that we’re disappointed. From The Telegraph) “The Stability and Growth Pact has more or less failed. Market discipline is done away with by ECB interventions. So there is no fiscal control mechanism...
  • Stealth Bailout of 2 Franken-Banks Now Happening in Spain

    10/02/2016 7:39:51 PM PDT · by Lorianne · 2 replies
    Wolf Street ^ | October 1, 2016 | Don Quijones
    Obscured somewhat by the spectacular antics of Deutsche Bank, there appears to be another bailout of two of Spain’s franken-banks: mostly state-owned Bankia and wholly state-owned Banco Mare Nostrum (BMN). The news was released so quietly that even in Spain barely a living soul is aware it’s happening. For the moment, BMN is completely state-owned, after its four constituent state-owned parts — Caja Murcia, Caixa Penedès, Caja Granada y Sa Nostra — were rescued by Spain’s taxpayers and lumped together for the modest price of €1.6 billion in 2010. But by the end of this year all that was supposed...
  • It’s not just Deutsche. European banking is utterly broken

    10/02/2016 7:43:28 PM PDT · by Lorianne · 25 replies
    Telegraph (UK) ^ | 01 October 2016 | Jeremy Warner
    Today’s mayhem is not so much the result of reckless bankers and asleep at the wheel regulators, but rather of the public policy response to the last crisis itself – that is to say, regulatory over-reach and central bank money printing. All eyes are naturally focused on the specific problems of Deutsche Bank, but Deutsche is in truth no more than the canary in the coal mine. As Tidjane Thiam, chief executive of Credit Suisse, observed last week, as an entire sector, European banks are still “not really investable”. Much the same disease as afflicts Continental banks also applies to...
  • Germany's Merkel cannot afford to bail out Deutsche Bank: media

    10/02/2016 4:36:08 PM PDT · by Lorianne · 13 replies
    Reuters ^ | 02 October 2016 | Georgina Prodhan
    German Chancellor Angela Merkel cannot afford to bail out Deutsche Bank (DBKGn.DE) given the hard line Berlin has taken against state aid in other European nations and the risk of a political backlash at home, German media wrote on Saturday. The government denied a newspaper report on Wednesday that it was working on a rescue plan for Germany's biggest bank, as its shares went into a tailspin fueled by a demand for up to $14 billion from U.S. authorities for misselling mortgage-backed securities before the financial crisis. Germany, which has insisted Italy and others accept tough conditions in tackling their...
  • PANIC As Margin Calls Begin: Deutsche Bank Has Financial System On The Cusp Of Collapse

    09/29/2016 4:35:35 PM PDT · by The Bat Ladys Husband · 99 replies
    Silver doctors.com ^ | 09/29/2016 | The Bat Ladys Husband
    DB stock is now in a full panic sell-off as I write this. It just hit another new all-time NYSE low on by the heaviest volume ever in the stock since its 2001 NYSE listing. It’s currently down almost 10%. No doubt the Central Banks will try to bounce it.
  • Pressure is building for Germany to show it's ready to rescue Deutsche Bank

    09/29/2016 3:56:36 PM PDT · by SkyPilot · 38 replies
    CNBC ^ | 29 Sep 16 | Jef Cox
    German officials could be about to find themselves in an uncomfortable position: Being called on to show they're ready to rescue a bank in a part of the world where such operations are considered taboo. Deutsche Bank came under intensified market fire Thursday, the latest salvo being a Bloomberg report that a small number of hedge funds are trimming their sails at the German bank. In a broad perspective, the move would represent a minor dent in Deutsche's derivatives clearing business. Barry Bausano, chairman of Deutsche's hedge fund business, told CNBC on Thursday that while there have been some outflows,...
  • Dow sheds 200 points as bank stocks fall sharply ( Markets unhappy with Machado porn queen story)

    09/29/2016 11:08:59 AM PDT · by GilGil · 43 replies
    CNBC ^ | 9/29/2016 | Fred Imbert
    Full title: Dow sheds 200 points as bank stocks fall sharply; Deutsche Bank tumbles 8% U.S. stocks traded sharply lower on Thursday after banking stocks fell sharply. The three major indexes hit session lows shortly after Bloomberg reported that approximately 10 hedge funds were reducing their exposure to embattled European bank Deutsche Bank. Deutsche shares fell 8 percent in afternoon trade.
  • Deutsche Bank can only be saved by the German government, strategist says

    09/29/2016 9:28:44 AM PDT · by TigerLikesRooster · 33 replies
    CNBC ^ | 2016/09/29 | Matt Clinch
    Deutsche Bank can only be saved by the German government, strategist says Matt Clinch | @mattclinch81 Only a substantial intervention by the German government can stop the collapse of the country's largest lender, Deutsche Bank, according to Stefan Müller, the CEO of Frankfurt-based boutique research company DGAW. "Deutsche Bank doesn't realize that something serious needs to happen," he told CNBC via telephone on Thursday morning. "(CEO John) Cryan clearly showed that he has no idea how to survive." The embattled German lender saw a respite on Wednesday from hefty selling seen in previous sessions amid contradictory reports on whether the...
  • European Central Bank: Governments must do more for economy

    09/08/2016 10:33:42 AM PDT · by Olog-hai · 6 replies
    Associated Press ^ | Sep 8, 2016 11:11 AM EDT | David McHugh
    The European Central Bank left its stimulus measures on hold Thursday and warned governments in the 19 country euro currency union that they need to do more to help the economy grow and push up inflation to healthier levels. The bank kept its key interest rates unchanged and decided against extending the duration of its existing bond-buying stimulus program. Bank President Mario Draghi seemed relatively confident about the economy and less inclined to hint at more stimulus than some analysts had expected. Instead, he used his news conference to urge governments to do their part. He said that implementation of...
  • ECB's Mario Draghi has run out of magic as deflation closes in

    09/09/2016 12:01:33 PM PDT · by Lorianne · 15 replies
    Telegraph (UK) ^ | 09 September 2016 | Ambrose Evans-Pritchard
    Large parts of the eurozone are slipping deeper into a deflationary trap despite negative interest rates and one trillion euros of quantitative easing by the European Central Bank, leaving the currency bloc with no safety buffer when the next global recession hits. The ECB is close to exhausting its ammunition and appears increasingly powerless to do more under the legal constraints of its mandate. It has downgraded its growth forecast for the next two years, citing the uncertainties of Brexit, and admitted that it has little chance of meeting its 2pc inflation target this decade, insisting that it is now...
  • ECB Board Member Lashes Out At Central Banking: Ignore "Mathematical Models", Focus On Reality

    09/04/2016 10:18:32 AM PDT · by amorphous · 7 replies
    Zero Hedge ^ | 4 Sep 2016 | Tyler Durden
    At first (literally the day the Fed announced QE1) it was just "tinfoil fringe blogs" who predicted the failure of the central bank's attempt to boost the economy by printing money, instead warning that all the Fed would do is unleash an unprecedented income and wealth divide that may culminate in civil war and hyperinflation. Then, gradually, analysts, pundits and even the mainstream press admitted the truth, i.e., that tin-foilers were right all along, until recently even the Fed's own mouthpiece, Jon Hilsenrath, one day before the Jackson Hole meeting wrote that "Years of Fed Missteps Fueled Disillusion With the...
  • Property firms expect Frankfurt to win big on Brexit

    07/11/2016 5:04:51 PM PDT · by Olog-hai · 8 replies
    TheLocal.de ^ | 11 Jul 2016 14:32 GMT+02:00 | (AFP)
    German property firms expect a boom in Frankfurt as financial businesses move activities and staff out of London in the wake of Brexit, an industry survey showed on Monday. A majority of 72 percent of respondents believed financial center Frankfurt, rather than rivals Dublin, Paris, or Amsterdam, would gain the most from Britain leaving the European Union, the study of 555 firms by consultants Ernst & Young (EY) found. The German property market as a whole would get a boost from Brexit, 57 percent of those polled said, with large majorities expecting prices for commercial and residential properties to increase....
  • German court rules in favor of ECB crisis-fighting tool [European Central Bank bond-buying]

    06/21/2016 3:25:01 PM PDT · by Olog-hai · 1 replies
    TheLocal.de ^ | 21 Jun 2016 10:19 GMT+02:00 | (AFP)
    Germany’s top court ruled on Tuesday that a key crisis-fighting tool of the European Central Bank complies with German national law. The constitutional court ruled that the ECB’s 2012 bond-buying plan called Outright Monetary Transactions (OMT) complies with German law. OMT — though never actually used — was part of ECB’s President Mario Draghi’s landmark promise to do “whatever it takes” to save the battered euro at the height of the crisis in 2012. […] The promise of OMT was that the ECB could, if necessary, buy up unlimited amounts of government bonds from debt-stricken countries that had pledged reforms...
  • Brexit Chaos to Serve as Cover for ECB Bank Bailouts

    06/17/2016 10:04:01 AM PDT · by Lorianne · 4 replies
    Wolf Street ^ | 14 June 2016 | Don Quijones
    Over the course of the last few months, Brexit has become one of the biggest catch-all preemptive scapegoats of recorded human history. Even far beyond the old continent’s porous borders, politicians, central bankers, and economists are warning their respective populations to brace for a serious aftershock if the people of Britain vote to leave the EU. This is is a remarkable feat given that the UK has its own perfectly functioning currency, and as such decoupling from the EU, while bumpy, should not pose an immediate financial threat either to the UK or the EU, let alone the world at...
  • Paying governments $10.4 trillion to take your money is now a political fiasco

    06/10/2016 9:29:38 AM PDT · by Lorianne · 8 replies
    Yahoo Finance ^ | 08 June 2016 | Jared Blikre
    The central bank experiment with negative interest rates—where governments charge you to buy their debt—is reaching a tipping point. Fierce political backlash is emerging against a policy that hurts savers and small businesses, all of which could have ramifications for U.S. markets. The bulk of negative-yielding debt is concentrated in Japan and Europe. Globally, the total is now $10.4 trillion, according to Fitch Ratings. In Japan, where politicians are preparing for the next election cycle, negative rates have become a hotbed issue. The chief policy architect of Japan’s new Democratic Party, Shiori Yamao, just came out publicly against the Bank...
  • James Grant: ‘Something Is Going to Go Wrong’

    04/17/2016 3:03:53 PM PDT · by george76 · 8 replies
    Epoch Times ^ | March 9, 2016 | Valentin Schmid
    Chief editor of Grant's Interest Rate Observer debunks negative interest rates, banning cash, and helicopter money. ... Epoch Times spoke to Mr. Grant about the spotty track record of central bankers, deflation, gold and the gold standard, as well as negative interest rates and a ban on cash. A negative interest rate is not only a tax on saving, it is the destruction of saving. ... Negative interest rates are an attempt to tax thrift. The idea of earning dollar bills and putting those dollar bills in a bank and having them accumulate over time, the accumulation of which is...
  • European Central Bank to Launch New Stimulus Program [Revelation 13]

    03/17/2016 2:38:15 PM PDT · by Jan_Sobieski · 1 replies
    The New American ^ | 3/14/2016 | Charles Scaliger
    Last week, European Central Bank chief Mario Draghi (shown) tried to do an impression of former Federal Reserve Chairman Ben Bernanke. Although "Helicopter Ben" — he of the massive, innovative "stimulus" monetary policies enacted in response to the Great Recession, which pumped trillions of new dollars into the global economy — has been retired from the helm of the Fed for several years, he casts a very long shadow indeed. Draghi's own newly enacted stimulus, designed to boost Europe out of persistent economic malaise, not only takes a few pages out of the Bernanke playbook, it moves central banking into...
  • EU predicts 'modest' economic recovery next year

    11/06/2015 7:58:58 AM PST · by Olog-hai · 4 replies
    Associated Press ^ | Nov. 5, 2015 7:22 AM EST | Raf Casert
    The European Union on Thursday predicted the region's economy will grow at "a modest pace" next year thanks to cheap energy and central bank stimulus, but remains hampered by low investment and high debt. In an official forecast, European Commissioner Pierre Moscovici warned of uneven improvements across the 28 member states but said that for 2016, the EU economies will "see growth rising and unemployment and fiscal deficits falling." ...
  • Fears major bank is 'hours from collapse' as millions vote on Greece’s financial future

    07/05/2015 5:44:45 AM PDT · by RKBA Democrat · 61 replies
    Daily Mail UK ^ | 7-5-15 | Lydia Willgress
    (Title edited due to lemgth) Fears the central bank of Greece will collapse following today's referendum are rising as voters flocked to the polls to decide on their country's future. [snip] Officials are set to ask the European Central Bank (ECB) for emergency cash in a bid to stave off financial ruin following tonight's result, it has been reported. [snip] It comes as some sources also suggested ATMs will not open this evening in a bid to save money after EU leaders threatened to withdraw the euro in the event of a 'No' vote.
  • Greece debt crisis: ECB 'to end' bank emergency lending

    06/28/2015 4:54:27 AM PDT · by GunningForTheBuddha · 4 replies
    BBC News ^ | 6/28/2015
    The European Central Bank is expected to end emergency lending to Greece's banks on Sunday, the BBC understands.Well-placed sources told BBC economics editor Robert Peston a decision to end the Emergency Liquidity Assistance (ELA) would be made by the ECB's governing council later on Sunday.Greek banks depend on ELA.Cutting the lifeline could push Greece out of the euro. Some analysts have tweeted that the ECB is likely to cap, but not end, the ELA.
  • Greece May Sign Russia Gas Deal As Soon As Today

    04/21/2015 9:56:47 AM PDT · by tcrlaf · 8 replies
    Zerohedge ^ | 4-21-2015 | Durden
    It appears that Herr Schaeuble will be left in the cold as following comments from the Greek energy minister that a deal is coming soon: -RUSSIA MAY SIGN GAS LINK ACCORD W/GREECE TODAY: ROSSIYA 24 According to Gazprom's CEO comments on Greek TV, following his meeting with Greek PM Tsipras, Russia will guarantee 47BCM/YR of gas via Greece with the link to be built by a Russian-European group at a cost of around E2 billion. SNIP As a reminder, Russia is not acting out of the kindness of his heart, but merely engaging in another calculated move, one which kills...
  • Greece Said To Prepare "Grexit", Drachma, Bank Nationalization Plans

    04/04/2015 12:47:25 AM PDT · by Crapolla · 19 replies
    zero hedge ^ | 04/03/2015 | Tyler Durden
    On Thursday morning, we took an in-depth look at what the progression of events is likely to be in the event a cash-strapped, negotiation-weary Greece finally, for lack of will or for lack of options, fails to scrape together enough cash to pay its creditors. As BofAML notes, a missed IMF payment and/or failure to make interest payments to either the ECB or private creditors over the coming weeks would likely lead to default within 30 days, at which point "mark-to-fantasy" becomes mark-to-market and then "mark-to-default" in very short order. Although Greek officials came out midday with a “categorical” denial...
  • ECB Prepares For Grexit, Anticipates 95% Loss On Greek Debt

    03/18/2015 7:30:07 AM PDT · by SeekAndFind · 8 replies
    Zero Hedge ^ | 03/18/2015 | Tyler Durden
    Dear Greek readers: the writing is now on the wall, and it is in very clear 48-point, double bold, and underlined font: when the ECB "leaks" that it is modelling a Grexit, something Draghi lied about over and over in 2012 and directly in our face too, take it seriously, because it is time to start planning about what happens on "the day after." And incidentally to all those curious what the fair value of peripheral European bonds is excluding ECB backstops, the ECB has a handy back of the envelope calculation: a 95% loss. Which also is the...
  • ECB Pulls The Trigger: Blocks Funding To Greece - Full Statement

    02/04/2015 1:17:23 PM PST · by tcrlaf · 22 replies
    Zerohedge ^ | 1-4-2015 | Durden
    Just what the market had hoped would not happen... *ECB SAYS IT LIFTS WAIVER ON GREEK GOVERNMENT DEBT AS COLLATERAL *ECB SAYS IT CAN'T ASSUME SUCCESSFUL CONCLUSION OF GREECE REVIEW What this means simply is that since Greek banks are now unable to pledge Greek bonds as collateral and fund themselves, and liquidity is about to evaporate, the ECB has just given a green light for Greek bank runs... and all the worst parts of the bible (or merely a negotiating move to let Greece see just what kind of chaos this will create). And now finally, after many years...
  • This Is The Beginning Of The End For The Euro

    01/27/2015 10:23:22 AM PST · by SeekAndFind · 21 replies
    TEC ^ | 01/27/2015 | Michael Snyder
    The long-anticipated collapse of the euro is here. When European Central Bank president Mario Draghi unveiled an open-ended quantitative easing program worth at least 60 billion euros a month on Thursday, stocks soared but the euro plummeted like a rock. It hit an 11 year low of $1.13, and many analysts believe that it is going much, much lower than this. The speed at which the euro has been falling in recent months has been absolutely stunning. Less than a year ago it was hovering near $1.40. But since that time the crippling economic problems in southern Europe have gone...
  • Euro crisis, banking crisis, debt crisis - 5 yrs rearranging deck chairs on the Titanic

    01/26/2015 5:24:20 AM PST · by alexmark1917 · 1 replies
    5 years into the euro zone crisis the ECB announces a €1.1 trillion quantitative easing programme to boost economy. Bolder than expected. Draghi Commits ECB to Trillion-Euro Asset-Purchase Plan to Fight Deflation Mario Draghi led the European Central Bank into a new era, committing to a quantitative easing program worth at least 1.1 trillion euros ($1.3 trillion) to counter the threat of a deflationary spiral. The ECB president shrugged off determined opposition led by German officials with a pledge to buy 60 billion euros every month through September next year in a once-and-for-all push to put more cash into circulation...
  • Global economy hopes raised after European stimulus

    01/24/2015 10:50:50 PM PST · by Tolerance Sucks Rocks · 18 replies
    12 News ^ | January 25, 2015 | Pan Pylas
    DAVOS, Switzerland (AP) - The global economic outlook just got brighter after this week's big stimulus from the European Central Bank, leading policymakers from around the world said Saturday. In a panel at the World Economic Forum in Davos, they said a perkier Europe, coupled with a prolonged period of low oil prices, could help shore up the global economy following a period of underperformance that has prompted many forecasters to reduce their growth forecasts. "Lower oil prices and the big decision by ECB could further improve world economic outlook," said Haruhiko Kuroda, governor of the Bank of Japan.
  • "World Running Out of Positive-Yield Bonds"

    01/24/2015 8:58:19 AM PST · by Kaslin · 9 replies
    Townhall.com ^ | January 24, 2015 | Mike Shedlock
    In the wake of ECB's €60 billion a month QE madness (see "QE already Working" Says IMF Lagarde; Ho-Hum Details Announced; Gold the Place to Be), one might be wondering what it may do to European bond yields. German 10-Year Bond Yield image: http://3.bp.blogspot.com/-of_KecAryfU/VMKLTNvRyfI/AAAAAAAAcFk/6Kswiqag_hg/s400/German%2B10-Year%2Bbond%2Byield.png click on chart for sharper image Since September of 2013, yield on the German 10-year bond has plunged from around 2% to 0.367%. ECB Risks German Bonds Mismatch Exceeding 100 Billion Euros With €720 billion annual asset purchases, a huge portion of the bonds the ECB buys will be German. Bloomberg explains ECB Risks German Bonds...
  • Fed QE was $4trn over six years, BOJ and ECB spending a combined $1.5trn year.

    01/23/2015 5:16:22 AM PST · by alexmark1917 · 1 replies
    Fed’s $4 Trillion Holdings to Boost Growth Beyond End of QEQuantitative easing may turn out to be a gift that keeps on giving for the U.S. economy. As the Federal Reserve prepares to end its third round of bond buying next week, the central bank plans to hang on to the record$4.48 trillion balance sheet it has accumulated since announcing the first round of purchases in November 2008. That will continue to keep a lid on borrowing costs, helping the Fed lift inflation closer to its target and providing support to a five-year expansion facing headwinds abroad, from war in...
  • First Swiss Franc, Now Euro...RBC To Charge Negative Interest On Euro-Denominated Balances

    01/21/2015 5:52:23 PM PST · by alexmark1917 · 9 replies
    First Swiss Franc, now Euro... RBC TO CHARGE NEGATIVE INTEREST ON EURO-DENOMINATED BALANCES — Russian Market (@russian_market) January 21, 2015 Opinion: Think negative interest rates can’t happen here? Think again In the last week, the markets have had to get used to the idea of the negative interest rate, where you actually get charged for keeping money in the bank rather than going out and spending it. So far, that is restricted to two relatively small economies, both of which are struggling with the likely launch of a massive program of quantitative easing this week in the eurozone. But what...
  • E.C.B. Stimulus Calls for 60 Billion Euros in Monthly Bond-Buying

    01/22/2015 6:38:28 AM PST · by John W · 5 replies
    New York Times ^ | January 22, 2014 | David Jilly & Jack Ewing
    FRANKFURT — The European Central Bank said on Thursday that it would begin buying hundreds of billions of euros worth of government bonds in an ambitious — though some say belated — attempt to prevent the eurozone from becoming trapped in long-term economic stagnation. The bank’s president, Mario Draghi, said the central bank would begin buying bonds worth 60 billion euros, or about $69.7 billion, a month. That is more spending than the €50 billion a month that many analysts had been expecting. The long-awaited program, known as quantitative easing, comes after inflation in the 19 countries of the eurozone...
  • Open-ended European QE set to 'start with a bang'

    01/22/2015 7:12:26 AM PST · by Red Badger · 15 replies
    CNBC ^ | 01/22/2015 | Katy Barnato
    European Central Bank (ECB) President Mario Draghi announced the launch of an open-ended, expanded monthly 60 billion euro ($70 billion) private and public bond-buying program on Thursday. The long-anticipated introduction of euro zone government bond purchases will bring the ECB's buying program into line with the U.S. Federal Reserve's quantitative easing (QE). The program will be open-ended, lasting until at least 2016, Draghi told reporters at his regular media conference on Thursday, and will start in March this year. The hope is that it will boost the region's painfully low inflation rate, which came in at an annual minus 0.2...
  • ECB paralyzed by split as irreversible deflation trap draws closer

    12/05/2014 6:07:09 PM PST · by Lorianne · 8 replies
    Telegraph (UK) ^ | Ambrose Evans Pritchard
    The European Central Bank has dashed hopes for quantitative easing this year and acknowledged for the first time that the institution’s elite board is split on plans for a €1 trillion liquidity blitz. Equity markets fell across southern Europe,with Italy’s MIB off 2.77pc, led by sharp falls in bank stocks. Spain’s IBEX dropped 2.35pc. The euro surged by more than 1pc to $1.2455 against the dollar in early trading as speculators rushed to cover short positions. Expectations for immediate stimulus had been riding high after the ECB’s president, Mario Draghi, pledged action “as fast as possible” last month. The bank...
  • Falling inflation a worry for Europe but also the world

    11/23/2014 6:55:14 PM PST · by Tolerance Sucks Rocks · 60 replies
    Reuters ^ | November 23, 2014 | Ross Finley
    (Reuters) - European Central Bank President Mario Draghi has moved closer to launching sovereign debt purchases and data this week will show just how dangerously low inflation has fallen in the $13 trillion euro zone economy. A sickly Europe has held back global economic growth for years, and now it is contributing significantly to powerful forces already dragging down inflation across the globe. A spectacular drop in crude oil prices over the past month will be the center of discussion when ministers from the world's top oil exporters meets in Vienna on Friday.
  • ECB ready to pump €1 trillion into euro zone economy

    11/07/2014 3:51:45 PM PST · by TigerLikesRooster · 16 replies
    Irish Times ^ | Fri, Nov 7, 2014
    ECB ready to pump €1 trillion into euro zone economy Central bank ramps up efforts to rescue single currency bloc from deflation risk The European Central Bank is ready to inject up to €1 trillion of new liquidity into the euro zone economy as it ramps up efforts to rescue the single currency bloc from the risk of Japanese-style deflation, Mario Draghi confirmed yesterday. The ECB president also said the central bank’s governing council was unanimous in its commitment to use further unconventional tools, including quantitative easing, should economic conditions deteriorate. He added that the central bank had stepped up...
  • Europe could have a new problem on its hands: Pro

    09/05/2014 5:49:01 PM PDT · by Lorianne · 6 replies
    CNBC ^ | 04 September 2014 | Europe could have a new problem on its hands: Pro
    On Thursday morning, the European Central Bank surprised markets with a raft of stimulative measures including cuts in interest rates and the commencement of asset purchases. The news sent the euro currency much lower, but currency expert Boris Schlossberg of BK Asset Management identifies another reason why the euro could call even further: fresh concerns over a European Union breakup. ECB president Mario Draghi, in announcing the measures, mentioned that the vote was not unanimous. The strongest economy in the eurozone, Germany, is widely expected to have dissented. "It's a very, very tenuous union in many ways, and we see...
  • France and Friends: Merkel Increasingly Isolated on Austerity

    09/06/2014 4:20:58 AM PDT · by Olog-hai · 13 replies
    Der Spiegel ^ | September 03, 2014 – 04:41 PM | Nikolaus Blome, Ralf Neukirch, Christian Reiermann, Mathieu von Rohr and Christoph Schult
    The debate over Germany’s insistence on eurozone austerity has flared anew as an ailing France continues to demand economic stimulus. The European Central Bank may now be siding with Paris, leaving Merkel looking increasingly alone. […] Berlin is particularly alarmed by the stance taken by ECB head Mario Draghi. At the annual conference of top central bankers from around the world at Jackson Hole, Wyoming in August, Draghi surprised those present by saying “there is leeway to achieve a more growth-friendly composition of fiscal policies.” It was a comment that came close to the kind of debt-fueled growth stimulus measures...
  • Eurozone economy dead in the water, with crisis expected to carry on 'a long time'

    07/24/2014 8:13:54 PM PDT · by Lorianne · 12 replies
    Telegraph (UK) ^ | 22 July 2014 | Jeremy Warner
    It's taken a long time, but the International Monetary Fund finally seems to be talking some sense about the beleaguered deficit economies of the eurozone. In a new analysis of continuing imbalances within the single currency area, it pretty much concludes that the situation is hopeless without the sort of eurozone-wide macro economic policies – monetary as well as fiscal – which are specifically rejected by the high command in Berlin. OK, so it doesn't quite say that, but even so, this will make deeply depressing reading for the struggling economies of Greece, Ireland, Italy, Portugal and Spain.
  • ECB hurls cash at sluggish EU economy, seeks to force bank lending [Banks charge for deposits]

    06/05/2014 7:11:56 AM PDT · by SeekAndFind · 6 replies
    Reuters ^ | 06/05/2014 | BY JOHN O'DONNELL AND EVA TAYLOR
    The European Central Bank launched a raft of measures on Thursday to fight low inflation and boost the euro zone economy, cutting rates, imposing negative interest rates on its overnight depositors and offering banks new long-term funds. The ECB cut all its main rates to record lows in a drive to fight off the risk of Japan-like deflation and bring down the euro's exchange rate. For the first time, it will charge banks 0.10 percent for parking funds at the central bank overnight. It stopped short of large-scale asset purchases known as quantitative easing for now, but ECB President Mario...
  • German top court to rule on whether ECB (European Central Bank) can buy bonds

    01/30/2014 9:34:56 AM PST · by Olog-hai · 2 replies
    EU Observer ^ | 30.01.14 @ 12:48 | Valentina Pop
    Germany’s constitutional court is expected to rule this spring on the legality of the European Central Bank’s bond purchases, a scheme that has eased the eurozone crisis by calming markets. Udo Di Fabio, who served as constitutional judge between 1999-2011, told an audience at the Berlin-based Stiftung fur Familienunterhmen on Wednesday (29 January) that the court is “deliberating at the moment if the ECB can buy bonds at all.” According to EU laws, the ECB is prohibited from direct government funding, meaning direct bond purchases when a national government tries to sell debt on the markets. But in the past...
  • EU clears way to create joint banking supervisor

    10/15/2013 2:22:45 PM PDT · by Olog-hai · 2 replies
    Associated Press ^ | Oct 15, 2013 11:06 AM EDT | Juergen Baetz
    European Union officials on Tuesday approved the creation of a centralized banking supervisor, marking another step in the 28-country bloc’s long quest to stabilize its financial system. Finance ministers at a meeting in Luxembourg cleared the final legal hurdle to the establishment of the new banking supervisor, which will be operated by the European Central Bank and directly oversee the bloc’s 130 biggest banks.“Now we will start hiring supervisors, rent buildings and start the coming (bank) stress test,” ECB executive board member Joerg Asmussen said. The so-called single supervisory mechanism will be based with the ECB in Frankfurt, Germany, and...
  • European Central Bank hires controversial consultancy for bank audit

    09/26/2013 9:25:31 PM PDT · by Olog-hai · 1 replies
    EU Observer ^ | 25.09.13 @ 09:51 | Valentina Pop
    The European Central Bank (ECB) on Tuesday (24 September) said it hired Oliver Wyman, a US-based financial consultancy, to help out with a thorough audit of the 130 largest banks in the eurozone. The review of the banks’ balance sheets and capital needs is a prerequisite for the ECB to take on a new task—that of a single supervisor (SSM) for these “systemic” banks. Oliver Wyman is a known name in the world of eurozone bailouts and bank “stress tests.” Back in 2006, it famously said the Anglo Irish Bank was the best bank in the world. Three years later,...
  • Angela Merkel wins historic third term in German elections

    09/22/2013 5:37:50 PM PDT · by mandaladon · 40 replies
    The Telegraph ^ | 22 Sep 2013 | Jeevan Vasagar
    Angela Merkel vowed that she would deliver more “successful years for Germany” as exit polls indicated a commanding lead for her party over the main opposition. Angela Merkel is heading for a third term as Germany’s chancellor, as exit polls showed she could even be on course for the historic achievement of an absolute majority in the country’s parliament. An early projection by the state broadcaster ARD on Sunday evening showed Mrs Merkel’s Christian Democrat party (CDU) winning 301 seats in the 598-seat Bundestag, enough to form a government without a coalition partner. Later projections suggested, however, that she could...
  • EU lawmakers back central bank oversight

    09/12/2013 5:38:31 AM PDT · by Olog-hai · 1 replies
    Associated Press ^ | Sep 12, 2013 8:03 AM EDT | Juergen Baetz
    European lawmakers approved legislation Thursday establishing a new, centralized oversight for Europe’s largest banks, marking what is considered a key step toward stabilizing the bloc’s financial system. The centralized bank supervision authority, which will be anchored by the European Central Bank, will be up and running next year following a thorough stress test of banks’ balance sheets. The so-called single supervisory mechanism is the first of three pillars of the bloc’s planned banking union, the cornerstone of efforts to turn the tide on the 17-nation eurozone’s three-year-old debt crisis. Its goal is to make supervision and rescue of banks the...
  • Draghi Flaps His Wings in Europe, US Mortgage Rates Soar

    06/06/2013 5:44:48 PM PDT · by whitedog57
    Confounded Interest ^ | 06/06/2013 | Anthony B. Sanders
    Today, ECB President Mario Draghi said that the European Central Bank (ECB) will keep its main interest rate on hold at a record low 0.5 percent on Thursday, saying that improved economic data in May confirmed its forecast of a gradual recovery from prolonged recession later this year. Draghi sees GDP growth at -0.6%. Oh that tepid news, European sovereign yields rose, some by over 20 basis points. Draghi-fly effect? While US Treasury markets remain relatively quiet today, mortgage rates continue to rise, puttingoa chink in the housing recovery armor. Here is a chart of Freddie Mac’ loan commitment rate...
  • ECB Could Cut Rates After German Output Falls (Turning Monetary Volume to 11)

    04/24/2013 4:10:32 PM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 04/24/2013 | Anthony B. Sanders
    The Federal Reserve, Bank of Japan, and the European Central Bank are in a race to the bottom … on interest rates. After Germany’s output fell, the ECB is prepared to … turn its monetary volume to 11. Currently, the ECB Rate is at 0.75, but a meeting is coming up on May 2nd where it may be lowered (hopefully to 0.11!). And here is Germany’s Manufacturing PMI Market Survey for April that may drive the ECB to turn up the volume. Europe’s GDP growth is anemic to say the least. With sovereign yields in larger economies already below 2%...
  • Central Banks Gone Wild! South Korea Mimics Bank Of Japan and The Federal Reserve

    04/15/2013 7:13:16 PM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 04/15/2013 | Anthony B. Sanders
    Imitation is the most sincere form of flattery. Now, South Korea is mimicking the Bank of Japan and The Federal Reserve and is attempting to stimulate economic growth mostly through issuing new debt (15T won), April 16 (Bloomberg) — South Korea plans 19.3t won of additional fiscal support to spur growth, Finance Ministry says in an e-mailed statement. • Stimulus package will boost growth by 0.3 percentage points and create 40,000 jobs • Of the total stimulus amount, 15.8t won will be financed by issuing new bonds and adjusting a debt buyback program • Additional bond issuance may raise bond...
  • Game of Thrones: Gold, Germany, France, Taxes and the Debt Ceiling

    01/15/2013 8:53:48 AM PST · by whitedog57
    Confounded Interest ^ | 01/15/2013 | Anthony B. Sanders
    With Washington DC alight with the buzz of the approaching debt ceiling, Germany wants its gold back from the NY Fed and other central banks. Here is a country-by-country list of country gold reserves. (I hope the Germans find more gold in the New York Fed than we would find in Ft. Knox!) Of course, Germany looks at the USA and wonders how we can borrow SO much money and generate SO little economic growth. 113% increase in Federal Debt held by public since Q2 2008 and a measly 2.57% growth in real GDP. This comes at a time when...
  • European ministers ink deal on bank oversight

    12/13/2012 5:11:51 AM PST · by Olog-hai · 1 replies
    Associated Press ^ | Dec. 13, 2012 12:05 AM ET | SARAH DiLORENZO and RAF CASERT
    The European Union on Thursday took a major step towards one of the most important transfers of financial authority away from national capitals when its member states agreed to create a single supervisor for their banks. The political agreement reached at dawn by finance ministers augured well ahead of the evening start of a summit of the 27 government leaders seeking to set up a banking union. … Under the deal, banks with more than €30 billion ($39 billion) in assets or those that represent 20 percent of gross domestic product of their national economies will be placed under the...
  • Exclusive: Spain ready for bailout, Germany signals "wait" - sources

    10/02/2012 10:16:01 AM PDT · by mojito · 5 replies
    Reuters ^ | 10/2/2012 | Julien Toyer
    Spain is ready to request a euro zone bailout for its public finances as early as next weekend but Germany has signalled that it should hold off, European officials said on Monday. The latest twist in the euro zone's three-year-old sovereign debt crisis comes as financial markets and some other European partners are pressuring Madrid to seek a rescue programme that would trigger European Central Bank buying of its bonds. "The Spanish were a bit hesitant but now they are ready to request aid," a senior European source said. Three other euro zone senior euro zone sources confirmed the shift...