ECB Archive

placebo’s doing their thing

As previously discussed, financial placebos like QE do cause market participants to alter behavior out of either a misunderstanding of the actual fundamentals, or in anticipation of reactions by others presumed to be misinformed. And while the effects of these activities get reversed, however sometimes the effects are more lasting. And there ...Read More

Market Watch

Radical fixes needed to make the euro work Commentary: Warren Mosler has a plan but no takers By Darrell Delamaide May 8 (MarketWatch) — If youre ever tempted to think the euro zone has turned the corner and is on the right track, go have a chat with Warren Mosler and hell ...Read More

DRAGHI SAYS ECB TECHNICALLY READY FOR NEGATIVE DEPOSIT RATES

If anyone can get a message to him, please tell him that, functionally, negative rates are just a tax on deposits that ultimately reduces spending/output/employment, much like the PSI did in Greece and whatever you want to call the ‘deposit confiscation tax’ in Cypress. >    >   (email exchange) >    >   This is a bit ...Read More

Germany’s Ifo Drops in April, Raising Odds of ECB Cut

And a rate cut only makes it worse, as per the interest income channels: Germany’s Ifo Drops in April, Raising Odds of ECB Cut April 24 (Bloomberg) — Germany’s Ifo index dropped in April, in a further sign that Europe’s largest economy is slowing. The business climate reading came in at 104.4 ...Read More

Thaler’s Corner 04-22-2013 2013: And now?

Again, very well stated! Thaler’s Corner I must admit that I am at a loss for words these days. The analytical items at our disposal describe a situation so complex, given a myriad of contradictory influences, that I find it impossible to develop any sort of reasonable scenario. I have spent a ...Read More

Draghi Considers Plan B

Yet more proposals that won’t work. The problem remains: Deficits are too small while they all think they are too large. Draghi Considers Plan B as Sentiment Dims After Cyprus Fumble By Jeff Black and Jana Randow and Stefan Riecher April 4 (Bloomberg) — European Central Bank President Mario Draghi is under ...Read More

Cyprus proposal detail

Proposals from earlier today: ECB guarantees deposits for .25% annual fee ECB takes over regulation, supervision, enforcement of banking regs etc. This becomes the model for regulating all EU banks I finally got a quick minute to add some color to the above proposals from earlier today. With about 70 billion in ...Read More

Cyprus proposal Inbox

ECB guarantees deposits for .25% annual fee ECB takes over regulation, supervision, enforcement of banking regs etc. This becomes the model for regulating all EU banks Of course I have no say ;) ...Read More

Cyprus Funding Need and Sources

In line with prior info. Also, Europe is entirely dependent on Russia for a large chunk of its gas and some oil as well. They made Russia promise and cross their hearts never to cut it off, but they could jack up the price to cover Cyprus… ...Read More

French and Italian debt chiefs warn on EU Tobin Tax

So how about just letting the ECB fund them all at 0%??? Transactions taxes reduce transactions by making them costly, which is exactly what this one will do. So if that’s the outcome they want they should go ahead and do it. And if they want deficit reduction, well, if they were ...Read More