The Bundesbank: ECB massively exceeds its mandate "Instead of being limited to a monetary stability policy, ECB President Mario Draghi is trying to outsmart the financial and economic policy field like a socialist government."
Reinhart, Rogoff... and Herndon Thomas Herndon, the UMass Amherst PHD student who discovered an Excel coding flaw in the famous paper by economists Kenneth Rogoff and Carmen Reinhart, which had claimed that when a country's debt surpasses 90% of GDP, then growth slows precipitously, was the man of the week.
Budget 2014-2020: Don't sacrifice EU's future to the current crisis, say MEPs EU member states must not use the economic crisis as a pretext to force austerity upon the EU until 2020, MEPs warned in a debate on Wednesday.
Handelsbanken - A brand new type of Bank has sprung up in the UK They are letting the local branch managers make all the decisions about lending. Imagine that?
The world hasn't learned anything since The Kreuger Crash For the past four years, the political leaders and bankers have made enormous efforts to save the financial industry, clean up the banks, and reform regulation in order to restore trust and confidence in the financial system. This hasn’t worked. Banks today are bigger and more opaque than ever, and they continue to behave in many of the same ways they did before the crash.
Growth and renewal in the Swedish economy Sweden’s economy is faring better than that of many of its peers: the nation has low public debt and a current-account surplus, and since the early 1990s its growth rate has outpaced that of other members of the EU-15 and the United States.
1 trillion dollar platinum coin Ha ha - The Treasury has the ability to mint a coin in any denomination, deposit it into its Federal Reserve account and use it to pay off its debts...
Asymptotix in CIOmag 2012 Asymptotix appeared in CIO Mag 2012 in Luxembourg. Have a look at page 83!
1 day to go - what happens if no agreement is reached? Less than 36 hours remain now before a package of painful tax hikes and spending cuts start to kick in. Even if a deal is struck, it will have to be passed by both the Democrat-controlled Senate and then the GOP-held House — running the gauntlet of a gridlocked Washington on new year’s eve.
Christmas message by José Manuel Barroso to staff of the European Commission Christmas message by José Manuel Barroso to staff of the European Commission
Haldane giving evidence at the Parliamentary Commission on Banking Standards Banking Standards Commission video – Andy Haldane giving evidence (you can see it here – 37 minutes onwards is very interesting). Nice bit about IT and risk management at 58 mins also.
Macroprudential Supervision and the Transmission Mechanism It could be argued that Pillar One of Basel II is the Microprudential constraint upon the banking institution whereas Pillar II is the Macroprudential aspect to the Bank’s capital requirement, that quantity of capital which provides insurance against the institutions interdependence with the system via its liquidity risk and exposure to macroeconomic policy alterations through interest rate risk.
the asymptotix of the basel accords The important point I suppose is that BIS sets the rules but the conceptual views of the distinctions of UL and EL and r.cap and e.cap will differ amongst the users of those rules (the banks being regulated) as they do amongst the BIS committee members and their economists.
what would president bartlett say? These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.
Drupal 6 Views 2 custom handler for a dynamic select list Views handlers are good tools to customise views in Drupal. Here is an example where a dynamic select list has been added to a field.
Tomorrow, summer is over in Euroland On Wednesday 22nd August, summer is officially over in Euroland. Jean-Claude Juncker kick-starts the Autumn semester with a trip to Greece.
What is all this Basel regulation stuff about, anyway? My view is that “this Basel thing” is going to morph into what it should have been in the first place. Given the long chequered history of Banking Regulation & Supervision since "Basel II"; considering that, what might or ought the future look like?
Kapital has transitioned to the state (ref. AMA) Political Economix & Rational Expectations The REH is not political even the British Labour party in opposition right now lare using an expectational argument to explain why economic stimulus is not working to break the liquidity trap at the vortex of the current massive crisis.
Stress Tests - A New Modeling Paradigm & a Pragmatic Approach the sequence of items from asymptotix which tie together sequentially the pragmatic approach to adapting legacy New-Keynesian models towards Macro-financial analytics and real stress testing in a Crowded Out world.....
A European Monetary Fund/ EU Stabilization Bank / The Eurozone Problem and Proposed Solutions The EFSF/ESM construct was the backstop for the EU member states’ sovereign bond markets. The point is the EFSF/ESM framework proposal was a) not credible at all, from the moment of announcement at 4am on 10th may 2010 & quickly became perceived as evidently unworkable as the summit process repeatedly refined the announcement
Liquidity Risk - The Sharp End Issue of the Credit Crunch in 2008 vintage 2008 on Basel II Pillar 2; more Union Legend than asymptotix; Stress Testing & Market Risk, Holistic Risk Management but more valid today than it ever was & pointless gathering dust on an asymptotix electronic shelf!
Dutch Bank SNS REAAL in Trouble Massive un-productive property investnments (e.g. shopping centres, apartment complexes) in Spain and Florida. State Aid from Netherlands Govt. like the rest of them in '09. Payment of 1.6bn needed this year. It's a 'basket case'; but the importance of this story is not 'per se' it's an example of what else is out there, not only in Spain!
EURIBOR RIGGING: the context & incentive. “lack of understanding is absolutely no excuse” Who had the political authority and the moral obligation, is the question I would ask; in my view, lack of understanding is absolutely no excuse.
Rigging LIBOR or EURIBOR Macroeconomic Implications / asymptotix Everything is priced off LIBOR in the UK and EURIBOR in Europe. This rigging scandal has implications throughout the whole economic system.
Lunatix3 EURO AREA SUMMIT STATEMENT 29 June 2012 The poison at the centre of this systemic institutional dysfunctionality is the unwillingness of the EUROPEAN COMMISSION cadre to relinquish the power it maintains by fragmenting European state owned financial institutions other than the ECB
United States of Europe is coming, or is it an imagination? Nearly a year ago I wrote a similar article. The situation keeps going getting worse and worse! The politicians promise to magically solve everything at these Summits and we are approaching fast another one.
An Essay for the EU summit June Twenty Twelve It's going to take innovative and imaginative management, some thinking to fix this crisis and it cannot be done without an external context of political assuredness and governance which is blatantly lacking right now.
Conceptual Foundations of a TOM for an ICU There is a great deal of focus on the TOM (Target Operating Model) for an ICU (Internal Capital Unit of Basel II, Basel III or Solvency II) right now in Europe and the UK. We at asymptotix have done some thinking about it over the years.
The European Stability Mechanism (ESM) in pictures by the Bundesministerium der Finanzen At their meeting on 24/25 March 2011, the heads of state and government adopted a comprehensive package to reform Monetary Union.
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