A central bank is the term given to the authority responsible for policies that affect a country’s supply of money and credit. The story of the central bank goes back to the seventeenth century during these early years the central banks helped fund the government’s debt and primary focus was to stabilize and control the […]
The D word haunts everyone — FIU
Deflation is the scariest word! The FOMC statement last night managed somehow to avoid saying what surely should be what is on every member of the FOMCs’ lips- DEFLATION. The recent Federal Reserve Bank regional surveys have shown that inflation is falling and quickly, and the recent Business surveys from ISM in the US have […]
European Central Banks offer no new support to the economies — FIU
European Central Banks offer no new support to the economies.- they leave it to the Governments to find a solution. The BoE and ECB left interest rates unchanged and both, against some investors’ expectations, did not increase QE (BoE) or allow lower quality collateral to be used in Repo operations (ECB). In the ECB’s President’s […]
Some thoughts on Spain and a Spanish bailout — FIU
There are continuous rumours and speculation that a Spanish bailout will be announced in the coming weeks. However there are a number of problems in this happening. Firstly the market is missing a big problem with this- there are no funds available for a bailout from the ESM. The ESM currently has €32bln in capital. […]
Distortions are all over the markets again – shows so many in the market really lack the conviction of their statements — FIU
And the risk markets are always hoping for Central Banks to intervene and to bail them out. This continues to look like a pyramid scheme. The latest optimism comes today from a Chinese press report suggesting that the Chinese will cut the Reserve Requirement Ratio in the coming weeks, ahead of most analysts expectations. It […]