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The new European Union | Credit Writedowns

[ EU banking system was too big to bail in case Greece and else would default even in parts on some of its debt and or make no or delay repayment with interest in full ] In conclusion, the conditions asked of Greece are not likely to be met, because they cannot be met. Greece will be blamed for not living up to its commitments, as it has been this time around. Yet, somehow, the notion of asking for the impossible from a country that has no choice but to sign is fundamentally perverse. [...] The mistake was to break the no-bailout clause that was designed to make sure the Eurozone would not find itself in this position. For selfish reasons (i.e. preventing a bank crisis in Europe and the US), Greece was convinced to accept the first bailout in 2010.

Greece bank bailout banking crisis bank crisis investment banking retail banking TBTF too big to jail too big to bail European Union Positioning ECB Career Politicians lobbyist lobby Lobbying crony capitalism corporate scandal austerity accounting scandal bailout bail-in Cyprus of Cyprus deposit haircut deposit levy fairness Generationengerechtigkeit Wall Street profit maximisation shareholder value economic history fiscal policy monetary policy Basel3 banking fractional reserve banking EuropeanSystemicRiskBoard GFC recovery Debt Super Cycle Privatisation ideology dogma PIIGSFB PIGS PIIGS France Germany Bundesbank trichet Jens Weidmann Angela Merkel Peer Steinbrück corruption blackmail josefackermann ackermann Deutsche subsidies subsidizing Mark Blyth social contract social tension social cohesion constituency Nationalizing badbank badbanks restructuring monetary
october 2015 by asterisk2a

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How the banks ignored the lessons of the crash | Joris Luyendijk | Business | The Guardian

Joris Luyendijk spent two years talking to hundreds of City insiders. They revealed how close we came to disaster – and how quickly finance went back to business as usual [...] [Like in cycling, doping ... omerta ... blood brother ] The City is governed by a code of silence and fear of publicity; those caught talking to the press without a PR officer present could be sacked or sued. But once I had persuaded City insiders to talk (always and only on condition of anonymity), they were remarkably forthcoming.

GFC economic history banking crisis bank crisis shadow banking NPL credit bubble recovery monetary policy modern monetary theory TBTF too big to jail too big to bail Oversight transparency accountability CEO pay self-regulation regulation regulators lobbyist lobby Lobbying Career Politicians No Representation fairness Generationengerechtigkeit austerity sovereign debt crisis revolving door 1% ZIRP reflate reflation NIRP QE Super Rich 2015 Wall Street profit maximisation shareholder value London tax evasion tax avoidance investment banking retail banking fractional reserve banking excess reserves libor rigging scandal bribery fraud securities-fraud corruption
september 2015 by asterisk2a

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Banks Are Perilously Exposed to China - Bloomberg View

International banks, however, don't appear to be heavily exposed to China, at first glance anyway. Bank of International Settlements data show that their claims on Chinese banks, companies, consumers and public sector are quite manageable, though Australian and U.K. banks have extended a lot of credit in China in proportion to their total foreign assets: [...] U.K. banks' $198 billion in Chinese assets at the end of last year looks particularly threatening, especially given that HSBC and Standard Chartered both derive a significant portion of their revenue from China. This exposure is particularly problematic because a debt overhang is one of the Chinese economy's biggest problems.

exposure China banking crisis investment banking UK USA 2015 credit bubble equity bubble speculative bubbles bond bubble property bubble asset bubble asset allocation distortion ZIRP PBOC NIRP QE QT 2016 balance sheet recession underwater debtoverhang VAR excess reserves shadow banking fractional reserve banking banking Fed BOE London Bank Oversight George Osborne David Cameron Mark Carney liquidity trap Taper monetary transmission mechanism M3 monetary policy monetary stimulus unconventional monetary policy monetary system monetary theory austerity unknown unkown unintended consequences deregulation self-regulation regulation regulators Westminster Toff Conservative Party Tories Establishment Privileged speculative speculation derivatives financial repression financial market financial cycle financial literacy financial crisis HSBC Standard Chartered NPL correction overcapacity AIIB Asia FX reserves centralbank reserves margin trading leverage irrational exuberance hubris panic petrodollar Oil price OPEC global trade global economy global growth global imbalances faultlines structural imbalance Impediments debt monetisation debt monetization BIS Germany Japan Yuan RMB devaluation
september 2015 by asterisk2a

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Alibaba Is the Canary in China's Coal Mine - Bloomberg View

It turns out investors were right about Alibaba: No company is more on the front lines of China's economic shifts than Jack Ma's juggernaut. And that's just where the problems begin. [...] After months of putting the entire weight of the government behind saving the market, Beijing appears to have given up. The fallout from that realization will have unpredictable effects on 1.3 billion people indoctrinated to believe Beijing can control any crisis or narrative. As markets swoon and gross domestic product slides, consumers are delaying nonessential purchases. [...] Mass austerity has only just begun. [...] it would be interesting to see how the government responds to "large and widespread investment losses that could lead to a notable negative wealth effect which could weaken consumption, as well as grievances against the authorities." [...] Macau's GDP -26.4% last quarter [...] Chinese gamblers stayed home. [...] Ma created a better quarterly GDP report than Beijing.

Alibaba China Jack Ma 2015 credit bubble PBOC equity bubble asset bubble property bubble speculative bubbles speculative hunt for yield speculation Yuan RMB devaluation distortion QE ZIRP NIRP margin trading leverage discretionary spending Call Taper Fed BOE balance sheet recession underwater market intervention bond bubble unknown unkown unintended consequences hubris irrational exuberance western world faultlines Structural Impediments imbalance savings glut correlation excess reserves banking crisis shadow banking investment banking New Normal fractional reserve banking banking BIS centralbanks monetary policy fiscal policy short-term 1% Super Rich Privileged Establishment Toff bank bailout
september 2015 by asterisk2a

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Pando: In the Valley, pre-seed is a meme. In New York, it’s a necessity

// cost of entry? // unable to make it happen? // Can't you write software from anywhere? // problem, heavily diluted early on approaching A/B, traditional shops don't like the cap table of pre-seed, angels, seed, accelerator & Micro VC's already owning ~+40% ... you come to a traditional A/B shop and not one of the existing investors is actually leading the round or committed in paper do double down? // // from a financial perspective/investment/math --- in the PRIVATE MARKET thrown under the bus by NIRP, QE, hunt for yield and FOMO (looking for their female unicorn or own Zuck) everyone can run 100 burger stands with unlimited/stellar returns in their spreadsheet model (bc cost of capital being 0 or negative). Despite the deflation of price of software & hosting (marginal cost, economics of abundance), Talent got bid up heavily (+200k/y in LA by Snapchat) in certain cities (SV, NY, London) // &! Steen Jakobsen - youtu.be/fnp5ETnKylU - min 16 avg guy does not have access to credit!

Seed Round Party Round Venture Capital Micro VC barriers to entry cost of entry London Start-up Scene ecosystem New York Scene burn rate runway traction A Round seedfunding funding Angel Investor dilution cap table lesson advice liquidation preferences hunt for yield 2015 distortion FOMO equity bubble credit bubble ZIRP NIRP QE asset allocation Limited Partners monetary policy fiscal policy Wall Street asset bubble behavioral finance behavioral economics Silicon Valley Private Market Public Market reflate reflation cost of living valuation Unicorn Decacorn cost of leverage financial repression financial literacy financial financial cycle business cycle business confidence consumer confidence hubris panic irrational exuberance retail banking investment banking fractional reserve banking banking crisis
september 2015 by asterisk2a

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Bank of England: Bitcoin is "Harder Money" than Gold Due to Deflation – Bitcoin Magazine

During a presentation on digital currencies entitled “Old Money, New Money,” Andy Haldane, Chief Economist & the Executive Director of Monetary Analysis and Statistics of the Bank of England and his team stated that “Digital currencies are ‘harder money’ than a gold standard” because “sustained adoption [of bitcoin] would see ongoing deflation.” [...] 2 million UK adults do not have bank accounts and 2.5 billion people in the world have no access to financial services, said Haldane. However, given the estimate that 80% of the world’s population will own a smartphone within 5 years, Haldane believes that many could turn toward digital currency to store their savings. // &! bit.ly/1U0UYMM - Enabling New Internet Applications (no transaction minimum, no transaction fee) // &! W3C toEstablish Online Payment Standards - bit.ly/1Nye7py - Internet pioneers such as Ted Nelson, Marc Andreessen & Berners-Lee himself thought that the Internet should have a built-in framework for micropayments.

Bitcoin deflationary deflation fiat currency fiat money monetary policy Gold Standard economic history FinTech underbanked emerging market Developing World W3C micropayment micropayments payment payment-system payments PayPal Braintree Stripe Amazon Google Google Wallet creditcard oligopoly oligopol banking crisis banking fractional reserve banking financial market barriers to entry cost of entry
august 2015 by asterisk2a

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The real truth about the 2008 financial crisis | Brian S. Wesbury | TEDxCountyLineRoad - YouTube

bankers are greedy & excess speculation, is the story. Fed controls short-term interest rate through interest rate setting/Fed meetings based on fundy of American economy, // NIRP (greenspan put) post dot.com, distorts market, decision makers decisions. housing bubble w help of NIRP after dot.com & home-ownership campaign in bush years (fiscal stimulus/subsidies) 2 push that "asset." Not "home" to live in. // banks got too big to fail (their balance sheet/lending book) as liabilities (toxic assets - real downside unknown (due to complexity and day to day changes during crisis years), like CDO/CDS etc) overtook book, overall, value. Banking being actually insolvent, but how insolvent one doesn't know. Thus bad bank idea. ACCOUNTING. // Paul Volker raised rates ... was able, because USA (private household, banks, corporates) were not in a balance sheet recession. Problem was endogenous. // Deregulation + Lax accounting contributed to GFC greatly, unable to value banks books.

GFC economic history fractional reserve banking financial crisis monetary theory systemicrisk Greenspan-Put NIRP ZIRP negative real interest rate interestrate dot.com reflation reflate balance sheet recession deleveraging debtoverhang savings rate leverage alangreenspan greenspan Ben Bernanke benbernanke distortion housing market accounting too big to jail toobigtofail TBTF financial market financial incentive speculative bubbles speculative speculation hunt for yield asset allocation asset bubble TARP subprime QE stresstest timgeithner henrypaulson economic model economic damage macroeconomic policy fiscal policy monetary policy history paulvolcker complexity incomplete information business confidence consumer confidence confidence banking crisis zombie banks mark-to-market Janet Yellen
july 2015 by asterisk2a

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The world is defenceless against the next financial crisis, warns BIS - Telegraph

Monetary policymakers have run out of room to fight the next crisis with interest rates unable to go lower, the BIS warns. [...] These low interest rates have in turn fuelled economic booms, encouraging excessive risk taking. Booms have then turned to busts, which policymakers have responded to with even lower rates. [greenspan put][dot.com and GFC were in part fuelled by inadequate rate setting and oversight] [...] [BIS also rejecting the notion of secular stagnation]. // &! BIS 'low rates hold back global growth' - http://www.ft.com/cms/s/12ded5aa-1be6-11e5-a130-2e7db721f996 // &! Rising interest rates pose new risk for banks: BIS - reut.rs/1Jgyft9 [...] but a "normalization" of borrowing costs would reverse the debt-fueled inflation of asset prices and hit banks' own loss-absorbing equity capital, the BIS said. "Just as falling yields have supported asset valuation gains in recent years, an eventual normalization would generate losses ... Banks' equity capital would shrink."

BIS monetary policy unconventional monetary policy Financial Crisis business cycle economic cycle economic history centralbanks Fed Taper ECB ZIRP NIRP QE unintended consequences unknown unkown BOE monetary system monetary stimulus monetary transmission mechanism zombie banks EuropeanSystemicRiskBoard bailout equity bubble bond bubble fractional reserve banking dot.com GFC recovery Greenspan-Put alangreenspan Great Moderation Ben Bernanke Fed mandate Bank Oversight deflationary debtoverhang balance sheet recession zombie consumer structural imbalance Impediments output gap productivity USA UK Europe western world secular stagnation asset allocation distortion capital allocation asset bubble job creation labour market labour economics Niedriglohnsektor Niedriglohn Service Sector Jobs lost generation lost decade policy folly policy error demographic bubble sovereign debt debt bubble consumer debt debt monetisation debt monetization economic growth economic damage structural unemployment underemployed supply side economics microeconomic policy vocational education education policy Future of Work Mobile Creatives Mobile Creative marginal cost economics of abundance Silicon Valley industrial policy ideology austerity Fiscal Pact Schuldenbremse
june 2015 by asterisk2a

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WDR Kinozeit Dokumentarfilm Agora: Sendung vom 05.02.2015 - YouTube

Die Eurokrise aus griechischer Sicht: "AGORÁ - Von der Demokratie zum Markt" // &! Post-democracy (Themes for the 21st Century Series) Paperback – 23 Jun 2004 by Colin Crouch &! Making Capitalism Fit For Society Paperback – 6 Sep 2013 - by Colin Crouch "The aim of this book is to show that the acceptance of capitalism and the market does not require us to accept the full neoliberal agenda of unrestrained markets, insecurity in our working lives, and neglect of the environment and of public services."

documentary Greece sovereign debt crisis Eurokriese GFC economic history fractional reserve banking banking crisis TBTF toobigtofail Career Politicians oligopoly oligopol systemicrisk systemic risk crony capitalism capitalism Wall Street shareholder value Bailout haircut austerity fiscal sovereignty IMF Troika book European European Union PIGS democracy liberal economic reform Indignados Indignants Social Media lehmanbrothers Lehman Brothers Yanis Varoufakis neoliberal neoliberalism deregulation regulators regulation self-regulation game theory No Representation 1% Establishment Super Rich Super Cycle debt bubble bond bubble Privileged Pact carmenreinhart KennethRogoff Carmen Reinhart Kenneth Rogoff greatrecession lost decade lost generation Lobbying lobbyist lobby interest groups inequality Gini coefficient economic damage trickle-down economics UK George Osborne David Cameron Angela Merkel Wolfgang Schäuble
february 2015 by asterisk2a

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BBC News - 'Too big to fail' bank rules unveiled by global regulators

>> will be watered down again, by lobby. supported by Career Politicians. Calling it a compromise.

toobigtofail TBTF Bailout fractional reserve banking shareholder value Wall Street investment banking banking union zombie banks leverage Financial Stability Board G20 GFC EuropeanSystemicRiskBoard connectedness market unintended consequences unknown unkown unknown unknowns Black Swan complexity lobby Lobbying lobbyist
november 2014 by asterisk2a

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Der Crash ist die Lösung | SWR1 Leute - YouTube

banks still TBTF, Systemrelevant. << enabled by Own Lobby influencing Career Politicians. haftungsgarantien von ECB are no more capitalism. +++ &&& +++ If even Germany - Wirtchaftslokomotive - export meister - does still have a budget deficit, while being that country that produces more than it consumes, who else if not Germany? But still doesn't. +++ "Die Zeit der Rendite ist vorbei." +++ Schulden zu haben, man ist nicht frei. Frueher hat man das sich gekauft was man sich leisten konnte, ohne kreditkarte, ohne dispo, ohne bankkredit. +++ NEW crash will come of even bigger proportion and even more rubble to clear up afterwards than 2008/9 - GFC. +++ Always buy in tranches, dispersed over time. +++ fractional reserve banking leads to this UBER crash as we live on a planet with finite resources. Current GDP fetish needs to stop. Change of mind, thinking, course. << this is the same with Mobile Creative, future workforce, Software eats the world, UK's productivity gap.

book GFC Debt Super Cycle jubilee sovereign crisis liquidity trap investigative journalism journalismus monetization private consumer bubble monetisation public household balance sheet recession PIGS Europe lostdecade lost decade lost generation greatrecession greatdepression toobigtofail TBTF OTC derivatives systemrelevant Systemrelevanz toobigtojail Career Politicians accountability transparency Politics Democratic Process democracy short-term thinking long-term thinking financial industry LIBOR rigging scandal trust trustagent confidence corporatism crony capitalism Lobbying lobbyist lobby revolving door IMF IWF centralbanks economic history capitalism Thomas Piketty ECB EZB OMT faultlines budget deficit structural deficit Impediments structural imbalance history financial repression New Normal ZIRP NIRP QE Beton Gold property bubble fragile world fagile financial system external shock balckswan monetary stimulus hunt for yield speculative bubbles growth round equity bubble credit bubble asset bubble bond bubble Island Agentina Japan UK fractional reserve banking GDP economic model fiat currency fiat money USA academia acade
june 2014 by asterisk2a

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IMF's epic plan to conjure away debt and dethrone bankers - Telegraph

The Chicago Plan Revisited

http://www.imf.org/external/pubs/ft/wp/2012/wp12202.pdf

Benes and Kumhof argue that credit-cycle trauma - caused by private money creation - dates deep into history and lies at the root of debt jubilees in the ancient religions of Mesopotian and the Middle East.

[...]

The key of the Chicago Plan was to separate the "monetary and credit functions" of the banking system. "The quantity of money and the quantity of credit would become completely independent of each other."

[...] Private lenders would no longer be able to create new deposits "ex nihilo". New bank credit would have to be financed by retained earnings.

[...] The finding is startling. Simons and Fisher understated their claims. It is perhaps possible to confront the banking plutocracy head without endangering the economy.

WallStreet plutocracy oligopol banking banking crisis miltonfriedman Fed moneysupply monetary theory monetary policy System fiat money deleveraging balance sheet recession debtoverhang GFC greatrecession greatdepression IMF fiat currency fractional reserve banking IrvingFisher Irving debt jubilee credit bubble credit cycle economic cycle economic history
october 2012 by asterisk2a

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