asterisk2a + greatdepression + folly   35

Former Greek finance minister Yanis Varoufakis says EU deal is a 'new Treaty of Versailles’ | News | The National
THE bailout deal forced upon Greece by its eurozone creditors was dubbed “a new treaty of Versailles” last night by the country’s former finance minister. [...] the deal comes with years of enforced austerity and privatisation of state assets. Yanis Varoufakis, who quit last week after falling out with his European counterparts, spoke of the “politics of humiliation”. He said the lenders were taking revenge on prime minister Alexis Tsipras. “It is an impossible deal,” he added. “A deal that is simply not viable.” [...] “This has nothing to do with economics. It has nothing to do with putting Greece back on the rails towards recovery. This is a new Versailles Treaty that is haunting Europe again, and the prime minister knows it. He knows that he’s damned if he does and he’s damned if he doesn’t.” [...] “It’s not that it didn’t go down well – there was point-blank refusal to engage in economic arguments. Point blank.
Yanis  Varoufakis  2015  Alexis  Tsipras  Syriza  Greece  Troika  Eurogroup  austerity  ideology  dogma  Angela  Merkel  IMF  Wolfgang  Schäuble  Career  Politicians  political  economy  political  science  political  theory  political  folly  political  error  economic  history  ChristineLagarde  MarioDraghi  ECB  No  Representation  European  European  Union  fiscal  policy  sovereign  debt  crisis  debt  restructuring  debt  jubilee  debtoverhang  sustainability  sustainable  bailout  zombie  banks  greatdepression  Great  Depression  Leadership  humility  Failure  insanity 
july 2015 by asterisk2a
Eurokrise: Angela Merkel betreibt riskante Rettung - SPIEGEL ONLINE
Es sind die inneren Widersprüche einer Währungsunion, die nur das sein will, aber nicht mehr, die uns jetzt einholen. Anstatt die Schuldenkrise durch eine Schuldenkonferenz zu lösen, verlagern wir das Problem, indem wir komplizierte Auffangschirme schaffen, die die Schulden lediglich von einer Ecke des Systems in die andere hinüberschieben. Das sieht gut aus, ändert aber an der Überschuldung von Griechenland und Portugal nicht einen Deut.
debt  jubilee  Super  Cycle  sovereign  debt  crisis  haircut  PIGS  Europe  Politics  Career  Politicians  policy  folly  policy  error  lost  generation  lost  decade  secular  stagnation  debtoverhang  deleveraging  NPL  balance  sheet  recession  greatrecession  greatdepression  2014  Germany  divergence  faultlines  global  imbalances  structural  imbalance  Impediments  structural  deficit  debt  restructuring  restructuring  infrastructure  investment  Leadership 
august 2014 by asterisk2a
DIW-Chef Fratzscher zu Banken-Stresstest, Lohnerhöhung - SPIEGEL ONLINE
Die Abhängigkeit zwischen Banken und Staaten hat in den letzten Jahren besorgniserregend zugenommen. Die berechtigte Sorge ist daher, dass Bankenrettungen die Staatshaushalte der hochverschuldeten Eurostaaten überfordert. Dann könnten wir leicht wieder in eine Krisensituation wie im Sommer 2012 geraten, als die Anleihezinsen für viele Eurostaaten drastisch nach oben geschossen sind. [...] Die größte Herausforderung für Europa ist, Wachstum zu schaffen. Nur durch ein deutlich stärkeres Wachstum kann es gelingen, dass die Unternehmen Beschäftigte einstellen, die Banken faule Kredite abbauen und die Staaten ihre Finanzen in Ordnung bringen. [...] [ +see end - Income Growth across the board in Germany Needed. Recent 2017 wage floor/minimum wage was overdue. Overdue. ]
GDP  Europe  zombie  banks  PIGS  NPL  non-performing  loan  balance  sheet  recession  debtoverhang  Richard  Koo  Japan  economic  history  debt  jubilee  lost  decade  lost  generation  Super  Cycle  ECB  liquidity  trap  history  GFC  greatrecession  greatdepression  2014  infrastructure  investment  underemployed  structural  unemployment  long-term  unemployment  youth  unemployment  unemployment  Germany  France  faultlines  Impediments  structural  imbalance  structural  deficit  budget  deficit  fiscal  deficit  tradedeficit  trade  deficit  academia  academics  policy  error  policy  folly  fiscal  policy  monetary  policy  ZIRP  NIRP  OMT  QE  monetary  transmission  mechanism  deleveraging  Politics  Career  Politicians  ownership  accountability  transparency  Bundesbank  BuBa  income  growth  minimum  wage  wage  floor  coldprogression  kalte  Progression 
july 2014 by asterisk2a
Live chart: The low countries - YouTube
Timothy Geithner says no risk of U.S. losing it's AAA credit rating - http://youtu.be/0HDCvqgxrrE || Geithner: Japan's 'Lost Decade' Not America's Fate - http://youtu.be/fax8BIPKcP8 "the hope it's gonna heal itself, to hope you can grow yourself out of it" growing your way out of it" || +!!! Timothy Geithner Fired Robert Shiller? http://youtu.be/bIwBEYoSqKY >> economics has no humans in it !!! no real world example. Conventional wisdom so strong. "We've got too scientific." And anybody who is 'flaky' gets pushed out [Robert Schiller]. >>Wenn du dich auf andere verlaesst, bist du verlassen.<< || Robert Shiller: Speculative Asset Prices - http://youtu.be/oBXPOWytDMs "present value". google.co.uk/search?q=present+value+Robert+Schiller || + Robert Shiller: Nobel Prize Winning Economist - http://youtu.be/ABvtKGrIDUs "it can't be an exact science (forecasting) because of the complexity, mass data; uncertain, certain, and data that can't be put in numbers, storystelling -> feedback loops ...
bond  bubble  Japan  USA  UK  Europe  Germany  hunt  for  yield  lost  decade  lost  generation  deflation  deflationary  liquidity  trap  financial  repression  economic  history  Tim  Geithner  Timothy  Geithner  austerity  balance  sheet  recession  Richardkoo  Richard  Koo  creditrating  creditrisk  debt  monetization  debt  monetisation  QE  ZIRP  NIRP  monetary  transmission  mechanism  monetary  policy  monetary  stimulus  unconventional  monetary  policy  monetary  theory  Super  Cycle  debt  jubilee  GFC  deleveraging  debtoverhang  Career  Politicians  Makers  policy  folly  policy  error  toobigtofail  TBTF  systemrelevanz  Lobbying  lobbyist  lobby  fiscal  stimulus  fiscal  sovereignty  PIGS  sovereign  debt  crisis  Thomas  Piketty  Mobile  Creative  Mobile  Creatives  flat  world  globalisation  globalization  savings  glut  faultlines  Structural  Impediments  unemployment  deficit  imbalance  GDP  economic  model  Robert  Skidelsky  Robert  Reich  Paul  Krugman  consumer  debt  public  debt  debt  restructuring  household  debt  zombie  banks  creditcrunch  creditcrisis  ECB  BOE  BOJ  Abenomics  Fed  BuBa  leadership  Democratic  Process  democracy  trust  trustagent  confidence  greatrecession  greatdepression  history  evolution  Why  Software  Is  Eating  the  Software  Is  Eating  skill-biased  techn 
june 2014 by asterisk2a
Zinsentscheid der EZB: Draghi plant Minus vor Zinssatz - SPIEGEL ONLINE
Schon immer ließ sich das Ende eines Systems besonders schwer erkennen, wenn man Teil des Systems ist. Im Jahre sieben nach Ausbruch der Finanzkrise ist es langsam Zeit für die Frage: Was, wenn die vermeintliche Ausnahme in Wahrheit die Regel ist? Wenn es sich bei der Kombination aus niedrigen Zinsen, niedrigem Wachstum und niedriger Inflation, die weite Teile Europa seit 2008 ebenso im Griff hält wie die USA und Japan, um die neue Normalität handelt? Wenn das seit Jahrzehnten praktizierte westliche Wirtschaftsmodell, sich immer niedrigere Wachstumsraten mit immer höheren Staatsschulden zu erkaufen, an seinem Schlusspunkt angelangt ist? +++ http://bit.ly/SxhnZq "Nicht Europa ist am Ende - sondern der Kapitalismus, so wie wir ihn kennen. [...] Im angelsächsischen Finanzkapitalismus wachsen die Vermögen der Reichen und stagnieren die Einkommen der anderen." [...] [EU Election Result is a vote] gegen das ungerechte Wirtschaftssystem, das ihre Lebensgrundlage gefährdet.
capitalism  in  crisis  Europe  Japan  USA  deflation  deflationary  UK  Debt  Super  Cycle  sovereign  crisis  ECB  Fed  BOE  BOJ  GFC  greatdepression  greatrecession  recovery  2014  monetary  transmission  mechanism  liquidity  trap  NPL  non-performing  loan  economic  history  macroeconomic  policy  macroeconomics  fiscal  policy  monetary  policy  unconventional  monetary  policy  monetary  system  monetary  stimulus  financial  repression  New  Normal  lostdecade  lost  decade  lost  generation  crony  capitalism  corporatism  corporate  governance  Career  Politicians  policy  folly  policy  error  Makers  history  fiat  currency  fiat  money  trust  trustagent  confidence  hunt  for  yield  Politics  Thomas  Piketty  book  Robert  Reich  Robert  Skidelsky  josephstiglitz  Joseph  Stiglitz  financial  capitalism  asset  bubble  unknown  unknowns  unintended  consequences  complexity  1%  Super  Rich  income  inequality  income  mobility  social  mobility  working  poor  squeezed  middle  class  coldprogression  kalte  Progression  Gini  coefficient  Democratic  Process  democracy  European  Council  Election  2014  European  Election  2014  skill-biased  technological  change  Blue-collar  Worker  knowledge  White-collar  Worker  Mobile  Creative  Mobile  Creatives  disposable  income  tax  free  income  tax  code  tax  credit  taxation  tax  avoidance  tax  evasion  ethics  social  social  m 
june 2014 by asterisk2a
Dax knackt 10.000 Punkte: Rekord wegen billigen Gelds von EZB - SPIEGEL ONLINE
Erstmals überspringt der Dax die Marke von 10.000 Punkten. Das beweist erneut, wie sehr der deutsche Leitindex vom billigen Geld der Notenbank abhängig ist - und wie schnell die gute Stimmung an der Börse vorbei sein kann. + http://www.spiegel.de/wirtschaft/unternehmen/dax-steigt-ueber-10-000-punkte-auf-neuen-rekordstand-a-972849.html + http://www.spiegel.de/wirtschaft/unternehmen/geldanlage-bei-niedrigzinsen-gold-immobilien-einen-jaguar-a-973671.html ""Wohin also jetzt mit den Ersparnissen?"" +++ Spekulationsblasen: Wirtschaftsweiser warnt vor Gefahren der Niedrigzinsen - http://www.spiegel.de/wirtschaft/ezb-wirtschaftsweiser-wieland-warnt-vor-spekulationsblasen-a-975400.html +++ Niedrigzinsen: Schäuble befürchtet Immobilienblase in Deutschland - http://www.spiegel.de/wirtschaft/soziales/zinsen-schaeuble-befuerchtet-immobilienblase-in-deutschland-a-976154.html
asset  bubble  Betongold  Beton  Gold  ZIRP  QE  OMT  ECB  BOE  BOJ  Fed  monetary  policy  unconventional  monetary  policy  monetary  stimulus  asset  allocation  property  bubble  London  PIGS  monetary  transmission  mechanism  liquidity  trap  liquidity-trap  zombie  consumer  zombie  corporations  zombie  banks  Europe  sovereign  debt  crisis  Super  Cycle  hunt  for  yield  New  Normal  financial  repression  2014  MarioDraghi  BuBa  Bundesbank  banking  union  unintended  consequences  unknown  unknowns  complexity  macroprudential  policy  Politics  Career  Politicians  policy  folly  policy  error  austerity  fiscal  policy  Structural  Impediments  unemployment  faultlines  imbalance  recovery  greatdepression  greatrecession  lost  decade  lost  generation  speculative  bubbles  equity  bubble  credit  bubble  debt  bubble  bond  bubble  Wolfgang  Schäuble 
june 2014 by asterisk2a
Thomas Piketty: on tour with the 'rock-star economist' -video | Business | theguardian.com
Thomas Piketty. funny thing, at this meeting in min 3. no handshake, no spreading germs. less sick days. ;) ... +++ Faisal Islam on The Default Line - video interview - http://www.theguardian.com/business/video/2013/aug/16/faisal-islam-default-line-video || + Michael Lewis: the stock market is rigged – video interview - http://www.theguardian.com/business/video/2014/apr/30/michael-lewis-the-stock-market-is-rigged-video-interview ||
Thomas  Piketty  Robert  Reich  Book  documentary  Gini  coefficient  post-recession  post-crisis  GVC  greatrecession  greatdepression  recovery  2014  income  inequality  income  mobility  coldprogression  kalte  Progression  social  mobility  low-income  income  growth  income  distribution  tax  free  income  disposable  income  crony  capitalism  greed  Super  Rich  corporate  governance  journalism  journalismus  speculative  bubbles  property  bubble  economic  history  long-term  thinking  accountability  governance  public  policy  policy  error  policy  folly  policy-makers  lostdecade  lostgeneration  long-term  unemployment  underemployed  structural  unemployment  youth  unemployment  unemployment  Europe  USA  UK  sovereign  debt  crisis  democracy  inequality  Faisal  Islam  generational  contract  Environmental  Movement  disaster  Millennials  generationy  babyboomers  HFT  WallStreet  toobigtofail 
may 2014 by asterisk2a
Wolfgang Münchau: Die Gefahren des Jahres 2014 - SPIEGEL ONLINE
Beide Seiten haben Grund zu Pessimismus. Die strukturkonservative Bundeskanzlerin sieht mit Schrecken, dass Frankreich, Spanien und Italien keineswegs geneigt sind, deutsch zu werden. Euro-föderale Kritiker wie ich sind darüber enttäuscht, dass es weder eine Fiskalunion noch eine echte Bankenunion geben wird. Für uns ist das, was letzte Woche beschlossen wurde, keine Bankenunion, sondern nur ein schlechter Witz. Jedes Land bleibt für seinen eigenen Bankensektor verantwortlich. Das vorrangige ökonomische Ziel, die Risiken von Banken und Staaten zu trennen, ist dahin. Stattdessen ist die Bankenunion nur noch ein komplizierter administrativer Prozess.
Europe  europeanunion  banking  union  banking  crisis  bank  crisis  sovereign  debt  crisis  fiscal  sovereignty  austerity  2013  2014  France  Spain  Italy  liberal  economic  reform  greatrecession  greatdepression  lostdecade  lostgeneration  Japan  economic  history  history  Angela  Merkel  political  folly  political  error  FrancoisHollande  policy  error  policy  folly  ECB  creditcrisis  creditcrunch  M3  monetary  transmission  mechanism  monetary  policy  fiscal  policy  Richardkoo  reflation  deflationary  deflation  inflation  ZIRP  QE  LTRO  unintended  consequences  NIRP  negative  real  interest  rate  unconventional  monetary  policy 
december 2013 by asterisk2a
BBC News - Fears over 40% fall in part-time students
t examines why part-time students have fallen by 40% in two years, equivalent to a reduction of 105,000. There are concerns that such part-time courses are necessary to provide the skills needed by industry. Sir Eric Thomas, who headed the review, said "something is going wrong". There has been widespread recognition of the economic importance of part-time courses in allowing adults to improve their skills.
skills  student  loan  debt  Career  Politicians  employment  squeezed  middle  class  GFC  complexity  StudentLoans  Higher  Education  unintended  consequences  consumer  debt  davidcameron  Bubble  policy  error  greatrecession  policy  folly  debtoverhang  economic  history  working  poor  stagflation  squeezed  middle  UK  income  mobility  austerity  middle  class  Part-Time  Students  household  debt  unknown  unkown  greatdepression  Part-Time  Study  Toff  deleveraging  social  mobility  GeorgeOsborne  studentdebt 
october 2013 by asterisk2a
Bubbles, Regulation, and Secular Stagnation - NYTimes.com
In brief, there is a case for believing that the problem of maintaining adequate aggregate demand is going to be very persistent – that we may face something like the “secular stagnation” many economists feared after World War II. [...] The stability of prices and output masked an underlying unsustainable growth in leverage. [...] Our current episode of deleveraging will eventually end, which will shift the IS curve back to the right. But if we have effective financial regulation, as we should, it won’t shift all the way back to where it was before the crisis. Or to put it in plainer English, during the good old days demand was supported by an ever-growing burden of private debt, which we neither can nor should expect to resume; as a result, demand is going to be lower even once the crisis fades. [...] our current situation may well go on much longer than anyone currently imagines.
student  loan  debt  lobby  deregulation  monetary  policy  lobbyist  asset  bubble  modern  monetary  theory  reflation  dual  mandate  fiscal  stimulus  Lobbying  BOE  BOJ  macroeconomics  policy  folly  QE  liquidity  trap  inflation  targeting  fiscal  policy  UK  debt  bubble  political  error  paulkrugman  austerity  unknown  unkown  greatdepression  nominal  GDP  targeting  dis-inflation  deleveraging  regulation  economics  public  debt  secular  stagnation  inflation  private  debt  balance  sheet  recession  mandate  debt  jubilee  GFC  complexity  excess  monetary  theory  unintended  consequences  consumer  debt  liquidity-trap  political  folly  WWII  lostdecade  greatrecession  policy  error  regulators  debtoverhang  Wicksellian  natural  interest  rate  NIRP  Fed  microeconomics  economic  history  Super  Cycle  stagflation  Great  Moderation  leverage  stagnation  sovereign  debt  crisis  recovery  ZIRP  USA  household  debt  fiscal  theory  Japan  fiscal  deficit 
september 2013 by asterisk2a
Five Years After Lehman, BIS Ex-Chief Economist Warns "It's Worse This Time" | Zero Hedge
The share of "leveraged loans" or extreme forms of credit risk, used by the poorest corporate borrowers, has soared to an all-time high of 45% - 10 percentage points higher than at the peak of the crisis in 2007. + http://www.zerohedge.com/news/2013-09-14/record-high-grade-leverage-means-pik-toggle-lbo-debt-back-and-worse-ever // The Bank Of International Settlements Warns The Monetary Kool-Aid Party Is Over www.zerohedge.com/news/2013-06-23/bank-international-settlements-warns-monetary-kool-aid-party-over ""central banks must head for the exit and stop trying to spur a global economic recovery... cheap and plentiful central bank money had merely bought time, warning that more bond buying would retard the global economy’s return to health by delaying adjustments to governments’ and households’ balance sheets." http://www.telegraph.co.uk/finance/10310598/BIS-veteran-says-global-credit-excess-worse-than-pre-Lehman.html
unemployment  employment  monetary  policy  Mark  Carney  ope  reflation  zombie  banks  monetary  transmission  mechanism  BOE  banking  crisis  carmenreinhart  BOJ  LBO  balancesheet  policy  folly  QE  liquidity  2013  fiscal  policy  UK  debt  monetisation  political  error  unknown  unkown  greatdepression  zombie  consumer  deleveraging  debt  monetization  Richardkoo  centralbanks  liberal  economic  reform  faultlines  GFC  monetary  theory  exuberance  MarioDraghi  unintended  consequences  global  economy  monetary  stimulus  Help  to  Buy  Scheme  liquidity-trap  zombie  corporations  ECB  monetary  system  political  folly  benbernanke  bank  crisis  Abenomics  rebalancing  China  greatrecession  policy  error  productivity  LTRO  NIRP  OMT  Fed  communication  economic  history  Super  Cycle  stagflation  leverage  KennethRogoff  sovereign  debt  crisis  recovery  unconventional  monetary  policy  ZIRP  USA  BIS  POMO  Funding  for  Lending  Scheme  corporate  governance  fiscal  deficit 
september 2013 by asterisk2a
What The ECB's "Unprecedented" Forward Guidance Means | Zero Hedge
Europe struck in credit crisis - liquidity trap. & other problems - Politics / Brussels - one to mention. >> "The move clearly marks an innovative step in the ECB's communication and policy strategy for a bank that previously had always refused to pre-commit on interest rates." >> Problem is - ECB will have it hard to maneuver out of the measures, end schemes, etc. "Monetary Policy is no Panacea." Ben Bernanke. + >> http://www.zerohedge.com/news/2013-07-04/diminishing-effects-qe-programs
unemployment  monetary  policy  modern  monetary  theory  Europe  M3  zombie  banks  monetary  transmission  mechanism  banking  crisis  Structural  Impediments  creditcrisis  QE  PIGS  debt  monetisation  imbalance  political  error  creditcrunch  forward  guidance  trustagent  austerity  Taper  greatdepression  zombie  consumer  deleveraging  debt  monetization  balance  sheet  recession  Politics  PIIGSFB  GFC  MarioDraghi  output-gap  European  Commission  Euro  liquidity-trap  Troika  ECB  monetary  system  political  folly  bank  crisis  greatrecession  debtoverhang  OMT  NIRP  communication  trust  economic  history  Super  Cycle  confidence  sovereign  debt  crisis  unconventional  monetary  policy  escape  velocity  ZIRP  PIIGS  Germany 
july 2013 by asterisk2a
What's Next For Portugal? | Zero Hedge
The Portuguese economy cannot afford further delays Under the optimistic scenario forecast by the EU/IMF/ECB Troika, Portuguese debt is still expected to peak at 124% of GDP in 2014. Any delays will likely see this rise quickly, especially with growth already underperforming. Portuguese ten year borrowing costs have already shot up a staggering 1.5% since Gaspar’s resignation, reaching close to 8%. This highlights the fragility of the economic situation. Only a month ago, there was widespread talk of Portugal returning to the markets ahead of schedule – now it is difficult to see how it will exit its bailout programme in spring 2014 without any further assistance (the ECB’s bond buying programme, the OMT, still remains the most likely candidate).
Portugal  debtoverhang  OMT  2013  PIGS  Europe  European  Commission  sovereign  debt  crisis  bail-in  austerity  Troika  PIIGS  greatdepression  ECB  policy  error  greatrecession  policy  folly  bailout 
july 2013 by asterisk2a
www.bankofengland.co.uk/publications/Documents/speeches/2013/speech670.pdf
UK’s King Last Speech: UK needs more Bank of England stimulus as recovery is not assured. >> UK's future still uncertain. Reflective in Cable (GBPUSD). While others do much better. >> "Despite this encouraging picture, growth is not yet strong enough to reduce the considerable margin of spare capacity in the economy. Nor is recovery at an adequate rate fully assured. The weakness of the euro area and the problems of the UK banking system continue to act as a drag on growth. So the need to support the recovery remains. [...] unemployment remains unnecessarily high. [...] Both nominal and real interest rates are at unsustainably low levels. There is an understandable yearning for a return to normality [...] Monetary policy cannot provide the answer. [... Banking > ...] It is insufficient capital that restricts lending [+ holding not enough liquid assets]. And, without a resilient banking system, it will be difficult to sustain a recovery."
unemployment  monetary  policy  currency  war  Mark  Carney  reflation  zombie  banks  capital  monetary  transmission  mechanism  BOE  banking  crisis  Structural  Impediments  creditcrisis  Discount  Window  Facility  policy  folly  Recapitalisation  liquidity  QE  price  stability  inflation  targeting  fiscal  policy  UK  debt  monetisation  devaluation  political  error  imbalance  creditcrunch  Recapitalization  trustagent  hunt  for  yield  austerity  greatdepression  zombie  consumer  deleveraging  global  imbalances  inflation  debt  monetization  governance  balance  sheet  recession  Leverage  GFC  complexity  output-gap  unintended  consequences  liquidity-trap  debt  restructuring  monetary  system  too  big  to  jail  political  folly  bank  crisis  greatrecession  policy  error  debtoverhang  Special  Scheme  NIRP  trust  economic  history  confidence  youth  unemployment  unconventional  monetary  policy  ZIRP  MervynKing  toobigtofail  Funding  for  Lending  Scheme  corporate  governance 
june 2013 by asterisk2a
IMF Admits Mistakes on Greece Bailout - WSJ.com
"The International Monetary Fund is set to admit to major missteps over the past three years in its handling of the bailout of Greece, the first spark in a debt crisis that spread across Europe." > http://www.zerohedge.com/news/2013-06-05/imf-admits-it-idiot-and-liar "" The greater beneficiary of the 2010 bailout wasn't so much Greece as the wider euro-zone, the document suggested. It described the rescue as a "holding operation" that "gave the euro area time to build a firewall to protect other vulnerable members and averted potentially severe effects on the global economy." "" >> + http://www.spiegel.de/wirtschaft/oecd-und-eu-kommission-gegen-euro-sparpolitik-und-fuer-mehr-inflation-a-903575.html
monetary  policy  Politics  GFC  monetary  theory  Europe  accountability  accounting  European  Commission  GoldmanSachs  Euro  Troika  Brussels  ECB  political  folly  policy  error  greatrecession  policy  folly  debtoverhang  ChristineLagarde  trust  economic  history  fiscal  policy  Debt  Super  Cycle  confidence  political  error  sovereign  crisis  trustagent  austerity  PIIGS  fiscal  theory  greatdepression  balance  sheet  recession  IMF  bailout 
june 2013 by asterisk2a
Saxo Bank CEO On The 'Eurozone Minefield': "This Crisis Will Not Pass" | Zero Hedge
Cyprus was indeed a template for bail ins and that outright confiscatory wealth taxes, disguised as solidarity payments, could be used to raise funds. "The governments of Europe need money, and the private sector has it. It is as simple as that. Be very paranoid," he said, warning investors that the mattress may be a safer place to deposit money over the weekend than their bank accounts. "Frankly, it is a complete mess. And it is a mess that gets worse and worse every day," is how the outspoken truthiness begins, adding, "anyone with a rational view of the world now sees the currency collaboration as a historic failure that can lead to even further fatal consequences for Europe and the continent’s competitiveness vis-à-vis the rest of the world."
currency  union  2013  Politics  lostgeneration  economic  history  Europe  Saxo  Bank  unintended  consequences  Political  error  Lars  Seier  Christensen  Euro  Policy  bail-in  europeanunion  Troika  greatdepression  folly  Cyprus  NiallFerguson  greatrecession  lostdecade  folly 
may 2013 by asterisk2a
BBC News - ECB's Draghi 'ready to act if needed'
http://www.youtube.com/watch?v=JvHvyvPd0PU + http://www.spiegel.de/wirtschaft/soziales/ezb-senkt-leitzins-auf-rekordtief-von-0-5-prozent-a-897701.html "Die Währungshüter hoffen, dass die Finanzbranche das billige Geld in Form von Krediten an Unternehmen und Verbraucher weiterreichen wird." + http://www.spiegel.de/wirtschaft/unternehmen/ezb-senkt-leitzins-draghis-gefaehrlicher-rettungsversuch-a-897771.html ... >> After the GFC, banks should have been privatised (creditors to take haircuts) in 2010/11, those who were not banks (ie lending), but mere zombie banks. Europe is doing the same mistake as Japan. >> see Apple example - unintended consequences. Microsoft too.
monetary  policy  financialcrisis  GFC  monetary  theory  modern  monetary  theory  Europe  unintended  consequences  zombie  banks  New  Normal  liquidity-trap  banking  crisis  ECB  monetary  system  political  folly  bank  crisis  lostdecade  greatrecession  policy  folly  QE  debtoverhang  communication  economic  history  financial  repression  Debt  Super  Cycle  NPL  PIGS  bubble  error  creditcrunch  unconventional  monetary  policy  ZIRP  austerity  PIIGS  greatdepression  zombie  consumer  deleveraging  Japan  balance  sheet  recession 
may 2013 by asterisk2a
The Chart Making The Fed Nervous | Zero Hedge
http://www.zerohedge.com/news/2013-04-19/fed-governor-stein-warns-when-tbtf-bank-fails-depositors-will-be-cyprused "all too clear that part of the Dodd-Frank resolution authority guidelines, a bailout is no longer an option." Cyprus was the first, and will not be the last incident of bail-in solution for TBTF >> this whole this is a replay of Japan 90s and 2000s
monetary  policy  deposit  haircut  Europe  reflation  zombie  banks  BOE  banking  crisis  deflation  BOJ  Cyprus  deposit  levy  policy  folly  QE  SIFI  PIGS  UK  Error  bail-in  trustagent  austerity  greatdepression  zombie  consumer  inflation  expectation  deleveraging  IMF  balance  sheet  recession  GFC  monetary  theory  output-gap  haircut  derivatives  liquidity-trap  Troika  ECB  Insured  Bank  Deposits  political  folly  crisis  greatrecession  lostdecade  debtoverhang  FDIC  LTRO  OMT  Fed  trust  economic  history  confidence  sovereign  debt  crisis  ZIRP  USA  PIIGS  toobigtofail  POMO  Japan 
april 2013 by asterisk2a
More Children in Greece Start to Go Hungry - NYTimes.com
Last year, an estimated 10 percent of Greek elementary and middle school students suffered from what public health professionals call “food insecurity,” ... “When it comes to food insecurity, Greece has now fallen to the level of some African countries,” she said.
angelamerkel  Greece  2013  Politics  lostgeneration  human  tragedy  Europe  European  Commission  Policy  Error  austerity  Troika  greatdepression  political  folly  lostdecade  IMF  folly 
april 2013 by asterisk2a
Umfrage im Mittelstand: Deutsche Unternehmer schreiben Euro-Zone ab - SPIEGEL ONLINE
Unternehmer als Wachstumskritiker Deutschlands Mittelständler zeigen sich in der Umfrage sogar als Wachstumskritiker. 88 Prozent unterschrieben die Aussage, die deutsche Volkswirtschaft müsse sich auf Grenzen des Wachstums einstellen. Nach Ansicht der Commerzbank-Analystin Ulrike Rondorf spiegelt sich darin auch die derzeitige Kapitalismusdebatte. "Ich denke, dass diese Einschätzung der Unternehmer der breiten Öffentlichkeit entspricht, die ein Streben nach höherem Wachstum und Gewinnen ablehnt." > but without growth, you can't serve existing debt burden.
academics  Politics  GFC  Europe  academia  European  Commission  fault  lines  Troika  Structural  Impediments  greatrecession  policy  folly  debtoverhang  2013  economic  history  PIGS  imbalance  debt  bubble  sovereign  debt  crisis  Error  austerity  PIIGS  greatdepression  economic-thought  deleveraging  global  imbalances  mittelstand  Germany  faultlines  balance  sheet  recession  IMF 
april 2013 by asterisk2a
El-Erian's Summary: "Virtually Every Market Is Trading At Very Artificial Levels" | Zero Hedge
http://live.wsj.com/public/page/embed-85F75B51_F954_46E1_861D_EC47CC278296.html >> "if these levels aren’t validated by the fundamentals, then investors will get hurt." WORTH LISTENING EVERY MINUTE. > http://www.zerohedge.com/news/2013-04-16/not-what-low-volatility-environment-looks > http://www.zerohedge.com/news/2013-04-16/margin-clerks-were-working " Long experience in the markets will inform you that this kind of massive sell-off is indicative of someone or perhaps a numbers of someones with serious problems. " [...] The markets can turn on a dime and the move can be severe and painful. [...] The cash provided by the Central Banks has been leveraged to the nines as indicated by the severity of the sell-off in both gold and equities. > Europe lost out on design and execution to overcome crisis. > Rating Agencies have monopoly. With monopoly comes problems. > Trust, but verify.
unemployment  monetary  policy  bond  bubble  asset  bubble  modern  monetary  theory  Europe  zombie  banks  New  Normal  BOE  BOJ  Gold  Structural  Impediments  Equity  QE  2013  UK  debt  monetisation  creditcrunch  imbalance  debt  bubble  Error  trustagent  austerity  bubble  greatdepression  zombie  consumer  deleveraging  ratingagencies  debt  monetization  balance  sheet  recession  PIMCO  Politics  GFC  monetary  theory  unintended  consequences  liquidity-trap  ECB  debt  restructuring  monetary  system  political  folly  income  growth  China  greatrecession  uncertainty  lostdecade  monopoly  debtoverhang  Fed  trust  economic  history  financial  repression  bubbles  income-growth  sovereign  debt  crisis  unconventional  monetary  policy  ZIRP  USA  PIIGS  Japan 
april 2013 by asterisk2a
The Next Domino: Australia Doubles Tax On Retirement Savings | Zero Hedge
How much do you trust your government? >> Portugal, Ireland, Hungary & Co. raiding savings of ordinary people. raiding long-term funds for short-term holes. Promises are there to be broken. Laws to be rewritten. >> BOJ putting a tax in form of currency debasement (forced inflation / debt monetization) on its savers and pensioners. >> the problem with current form of democracy is - the short-term thinking that went on for 70 years.
currency  debasement  Politics  Europe  transferring-wealth  pension  scheme  IRA  BOJ  political  folly  Cyprus  Australia  democracy  greatrecession  lostdecade  policy  folly  JGB  middleclass  2013  lostgeneration  short-term  thinking  trust  pension  fund  working  poor  confidence  wealth  management  Error  401k  bail-in  trustagent  austerity  middle  class  USA  PIIGS  greatdepression  pension 
april 2013 by asterisk2a
The Bordeaux Effect | Zero Hedge
A world that is dislocated, on a different axis, where the economy is doing one thing and the markets are doing something else that is not connected. "Irrational exuberance" has returned and in a bigger way than before.
QE  2013  monetary  policy  Fed  economic  history  fiscal  policy  unintended  consequences  Error  ZIRP  BOE  greatdepression  ECB  BOJ  monetary  system  2012  book  greatrecession  policy  folly 
april 2013 by asterisk2a
Was Griechenland von Großbritannien lernen kann - SPIEGEL ONLINE
"Der Schuldenabbbau gelang vor allem mit so genannter finanzieller Repression, mit der schleichenden Enteignung der Gläubiger", Albrecht Ritschl, Prof für Wirtschaftsgeschichte an der LSE. Die Inflationsrate lag in Großbritannien zwischen 1945 und 1979 in den meisten Jahren deutlich höher als der Zinssatz, den die britische Regierung auf ihre Anleihen zahlen musste - den Gläubigern wurde also jedes Jahr ein bisschen was von ihrem Geld weggenommen. Die Inflationsrate war auch höher als das Haushaltsdefizit des Staates. Obwohl der britische Staat also in nahezu jedem Jahr mehr ausgab als er einnahm, schnurrte der reale Schuldenstand zusammen. [...] "Die künstlich niedrigen Zinsen, die wir gegenwärtig in England und den USA sehen, haben denselben Effekt, denn sie senken die Finanzierungskosten für die Staatsschuld." [...] Anlegern fehlt es überall an Alternativen.

& http://www.bloomberg.com/news/2012-03-11/financial-repression-has-come-back-to-stay-carmen-m-reinhart.html
GFC  greatrecession  policy  folly  policy  error  monetary  policy  unintended  consequences  expropriation  Fed  USA  inflation  BOE  ZIRP  NIRP  economic  history  austerity  UK  greatdepression  financial  repression 
august 2012 by asterisk2a
The euro crisis: We haven't forgotten how to make depressions | The Economist
GREECE is in a depression. A real deal, no kidding, bad-as-the-1930s depression.

The Greek economy is imploding for no other reason than that the prices are wrong.

***

sticky wages = sticky price for everything else

+

1930's Depression was excaserbated by countries sticking to the Gold standard.
The Euro is today Greece's, Spain's and so forth (PIIGS) Gold Standard that is ruinous.
EU Politicians made a grave error of judgement and assumptions - and are too stuck up as always to admit mistakes and revert course, OR drive full steam ahead with fiscal integration and assuming liabilities as a whole.

***

http://www.economist.com/node/21560252
book  Brussels  policy-makers  politics  economic-thought  goldstandard  gold  sticky-wages  economics  supply-demand  demand-curve  economic  history  Euro  EMU  Europe  policy  folly  policy  error  depression  2012  sovereign  debt  crisis  austerity  Greece  greatrecession  greatdepression 
august 2012 by asterisk2a
The Austerity Debacle. - NYTimes.com
Last week the National Institute of Economic and Social Research, a British think tank, released a startling chart comparing the current slump with past recessions and recoveries. It turns out that by one important measure — changes in real G.D.P. since the recession began — Britain is doing worse this time than it did during the Great Depression. Four years into the Depression, British G.D.P. had regained its previous peak; four years after the Great Recession began, Britain is nowhere close to regaining its lost ground.

Nor is Britain unique. Italy is also doing worse than it did in the 1930s — and with Spain clearly headed for a double-dip recession, that makes three of Europe’s big five economies members of the worse-than club. Yes, there are some caveats and complications. But this nonetheless represents a stunning failure of policy.
politics  paulsamuelson  davidcameron  trichet  economic-thought  folly  policy  Europe  greatrecession  GFC  greatdepression  2012  UK  paulkrugman  debate  austerity 
january 2012 by asterisk2a
Relax, central banks can still save us - Telegraph
Military demobilisation allowed an instant cut in the US budget deficit. Today the rot is structural, a failure to stop health care and ageing costs spiralling out of control.

The eurozone obviously needs looser money. M3 broad money is stagnant and real M1 deposits have turned negative, even in Germany and Holland. Real M1 is contracting at an alarming pace in Italy. EMU growth has wilted, five countries are spinning towards default, and the banking system is seizing up. This cries out for a change of course, yet the European Central Bank is still tightening.
USA  debtoverhang  deleveraging  balancesheet  recession  greatrecession  GFC  depression  history  paulkrugman  sovereign  debt  crisis  ECB  monetary  policy  supply  M1  M3  velocity  money  creditcrunch  error  folly  benbernanke  trichet  2011  August  JacksonHole  lesson  greatdepression  fiscal  austerity  europe  UK  presidency  barackobama  davidcameron  angelamerkel  sarkozy  GeorgeOsborne 
august 2011 by asterisk2a
Will Latest Market, Credit Woes Add Up to a 'Global Recession'? - YouTube
- downgrade in confidence, stat gov is not able to prop up economy if needed- downgrade in confidence, after gov debt ceiling debate ended with austerity shaped bill (compromise)- downgrade in confidence, after Obama could not show leadership in debate and give boundaries
- government, and other institutions (Fed, SEC, Banks, Individual) failed
- growth panic
- no leadership on both sides of the Atlantic
- slow growth below long-term average guaranteed in developed markets whose bubbles burst 
- wrong medicine currently administered 
- currently, QE, monetization does not lead into healthier moneysupply in UK, USA, EU. bc of debt overhang and deleveraging process - which will still take years.
KennethRogoff  GFC  paulkrugman  2011  greatrecession  barackobama  presidency  monetary  fiscal  policy  politics  mistake  folly  sovereign  debt  ceiling  debtceiling  crisis  August  PIIGS  Fed  ECB  economy  recovery  GDP  growth  QE  QE3  debtoverhang  inflation  deflation  deleveraging  Japan  lostdecade  history  lesson  liquidity-trap  greatdepression  austerity  unemployment  output-gap  moneysupply  monetization  BOE  UK  europe  USA 
august 2011 by asterisk2a

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