[This research note is from Deutsche Bank's DB Reasearch group.]
Since the outbreak of the financial crisis in 2007, Europe’s banks have been gradually retreating from the US market, thereby making room for others to step in. At their peak in September 2007, euro-area banks held assets equivalent to 50% of all foreign bank assets. [...]
The Wolfson Prize in Economics is the second largest monetary award that an economist could win (after the Nobel). It has been going on for many years. This year, they asked respondents to write about how a country could exit the euro with the least disruption.
Both Antal Fekete and yours truly wrote and submitted [...]
Mario Draghi today promised to do whatever it takes to fix the euro. ”Believe me, it will be enough.” I don’t know why anyone would believe him, but that is not the point of this article.
There is a Monetarist premise that is accepted almost universally today: the value of a unit of currency is [...]
“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in iniquity and born in sin. Bankers own the Earth. Take it away from them, but leave them the power to create [...]
The credit default swap markets are signaling caution as CDS spreads on eurozone sovereign bonds are widening. It includes “powerhouse” Germany (AAA) as well, according to this Markit report. It tells you where money is going (U.S.) and signals where the market places its trust. Consider that France’s Trésor spread is double that of Germany’s. Of [...]
This article comes from the City Journal, a publication of the Manhattan Institute. They write about many interesting things mostly about urbanism. They come at things from a mostly conservative, free market viewpoint (Bill Kristol on on their board). This article gives a perceptive look at French politics and what Hollande’s election means to Europe. [...]
From DeutscheBank Research
April 23, 2012
Funding conditions for European banks have improved considerably since end-2011. In Q1, EU banks were able to issue a total of EUR 154 bn in senior and covered bonds – compared with only EUR 85 bn in the whole of H2 2011. Still, issuance was down 35% yoy; the [...]
Dear Professor Keen:
I am a monetary scientist and a fan of some of your work. I admire the courage it took for you to call the Australian housing crisis as early as you did, and to make a bet that you would be right. But I came across this video, wherein you say:
We need to follow Greece because their default and withdrawal from the eurozone would set off major consequences to the European Monetary Union, and thus the EU, that are unforeseeable. A default would impact Greek banks who are major lenders to the government, as well as major German, French, and Belgian banks. These defaults would [...]