Tag Archives: ECB

Who do you trust and why does it matter?

trust-but-verify-e1389107073481Would you trust a banker? Stop laughing now…you there, in the back, stop it… Now, seriously, would you? More to the point perhaps, would a banker trust you? And what matter if they did or didn’t? Generalising, how much trust do you place in your business partners up and down the supply chain?  In others in the financial system? And does it matter? Continue reading

Time to Fire up the Money Helicopter?

helicoptermoneyInsanity, we are told, is doing the same thing time and again and expecting a different solution. By that definition, and no surprise to anyone who has watched the slow motion train wreck that is the Eurozone, the ECB is insane. But, as I have written in 2014, there is a cure.

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Greece – GREXIT = Export Miracle …err, hang on…

So nobody knows what is going on in Greece. Tspiras seems willing, as he has done all along, to compromise. Meanwhile, Dr Schaubel, which is German for “hell, no”, seems to as willing to be as uncompromising as possible, in between lecturing the ECB

If Greece does GREXIT, which is not certain, this will result in a depreciation of the currency by up to 50% some reckon. And here is the rub. Greece is critically dependent on certain things which will get expensive, while its exports (in trade) are not that large nor perhaps that amenable to rapid rampup in the face of increased demand concomitant on falling prices, or are indeed priced in non Euro currencies anyhow. While tourism and services help, Greece runs a massive CA deficit. The logic of GREXIT is that somehow not only will debt disappear (only if they default in tandem will that happen) but that exports will boom. Well, maybe.

This whole thing has been grossly mishandled, and while the Greeks have a bunch of blame, the TROIKA must take the lions share. If they are, as Lagarde said, the “adults” then its time to start behaving like it.

A Song for Europe – Mario’s favourite things

Here’s hoping someone will sing this … my voice would etch lead…


Haircuts on Greek bonds, ELA exploding

LTROs and OMTs , liquidity flowing

Wondering which of the lefties will win

These are a few of my favorite things


Deposits eroding and capital oozing

Taxes evading and cronies a schmoozing

Yanis going cheap via Ger-man Wings

These are a few of my favorite things


13 month salaries , no privatisation

Structural reforms that are stuck at the station

Facing the Troika what will it bring?

These are a few of my favorite things


When the Dawns comes

When Putin rings

When I’m feeling sad

I simply remember my favorite things

And then I don’t feel so bad