The Political Economy of LTRO
Tuesday, 14 February 2012 | 
John A Morrison
INTRODUCTION
It's LTRO[1] that I’m talking about this time! LTRO the latest version of “economic life support those” crackpot surgeons in the Central Banks and Treasuries of Europe have come up with. What is the issue with it? As LTRO2 approaches, to on the leap day (29/2/2012) I present a number of theses about LTRO;
1. LTRO is a workaround for Crowding Out
2. LTRO is executed via a process called 'Round Tripping' or known as a ‘Carry Trade’
3. Hedge Funds are intrinsic to the success of LTRO
4. This makes governments dependent upon Hedge Funds (& not just the banks)
5. LTRO creates a cash balloon which props up the equity market
6. LTRO is a high-risk central bank strategy which could deflate at a stroke
7. Ironically the very Hedge Funds and Asset Managers who are intrinsic to the success of LTRO are already freaked out by the high risk nature of the policy,
John A Morrison's blog | 
| Comments | 
Tags: Bank of England, ECB, John Angus Morrison, LTRO, political economy, QE, stress test
Will Merkel Change Her Tune on Stability Bonds?
Tuesday, 22 November 2011 | Peter Lindmark
Stability bonds. That is the new moniker given by the European Commission to euro bonds as it moves toward presenting its most definitive proposal yet for the debt pooling measure on Wednesday.
Indeed, European Economic and Monetary Affairs Commission Olli Rehn was in Berlin on Tuesday to tout Brussels' three-option studyon how bonds issued jointly by the 17 euro-zone member states could help stem the debt crisis.
Peter Lindmark's blog | | Comments | Tags: bond, ECB, EU, euro, Eurobonds, Germany, John Angus Morrison, Merkel, peter lindmark, Rehn, Stabilisation Bank
Willem Buiter Citigroup: Europe Must Act Now to Avoid a Default
Thursday, 17 November 2011 | Peter Lindmark
ECB Overnight Deposits 2011 (statistics)
Tuesday, 8 November 2011 | Peter Lindmark
Lenders increased overnight deposits at the European Central Bank to the highest level in more than 16 months.
Banks parked 299 billion euros ($412 billion) with the Frankfurt-based ECB yesterday, up from 288 billion euros on Nov. 4. That’s the most since June 30, 2010, and compares with a year-to-date average of 71 billion euros.
EUROZONE SUMMIT: METRIC OF SUCCESS
Tuesday, 25 October 2011 | John A Morrison
Understanding what a Central Bank is for / The Boundaries of European Financial Institutional Architecture
WHAT IS THE METRIC OF SUCCESS OF THE FINAL EUROZONE SUMMIT CONCLUSIONS ?
Euro zone banks overnight deposits with the European Central Bank
Wednesday, 28 September 2011 | European Affairs
Update 25 October 2011: The European Central Bank said banks in the euro area accessed less emergency overnight funding and deposits also fell.
Financial institutions borrowed 4 billion euros ($5.6 billion) at the rate of 2.25 percent, the ECB said, down from 4.6 billion the previous day. Banks also parked 198 billion euros with the Frankfurt-based central bank, down from 202 billion euros the day before.
FT reports: Siemens parked 4 to 6 bn euros at ECB - withdrew 500 million+ from either SocGen or Credit Agricole 2 weeks ago
Monday, 19 September 2011 | European Affairs
FT reports that Siemens withdrew more than half-a-billion euros in cash deposits from a large French bank two weeks ago and transferred it to the European Central Bank, in a sign of how companies are seeking havens amid Europe’s sovereign debt crisis.
In total, Siemens has parked between €4bn ($5.4bn) and €6bn at the ECB’s facilities, mostly through one-week deposits, this person said. Only a handful of large companies have the banking licences that allow them to deposit cash directly with the ECB.
ECB weekly statistics of bond purchases
Monday, 19 September 2011 | Finance - Banki...
ECB announces additional US dollar liquidity-providing operations over year-end
Thursday, 15 September 2011 | Finance - Banki...
The Governing Council of the European Central Bank (ECB) has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three US dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year. These operations will be conducted in addition to the ongoing weekly seven-day operations announced on 10 May 2010. The schedule for these additional operations is as follows:
The ECB's crisis response and government-bond purchases have sparked opposition in Germany
Saturday, 10 September 2011 | European Affairs
A sequence model of German / ECB relations 2010 thru 2011 from the WSJ European Affairs's blog | | Comments | Tags: Axel Weber, bond, Central Bank Independence, ECB, EFSF, Germany, LTRO, Stabilisation Bank
Are the key legislative pillars such as Basel II & III, UCITS IV and Solvency II forcing you to re-examine how you identify, measure and manage risk and capital?
Asymptotix work closely with our partners to help clients develop a more proactive, systematic and integrated approach to governance and risk management to deliver proper value.
Asymptotix can offer the support you need to deliver on time. Read more...
Is the goal of your website to sell services or products, educate, or collect data?
A positive customer experience is vital to conversion, no matter what your conversion goals may be. Our designers and developers will create a positive experience to maximize your conversions and deliver the optimal return on your investment. We strive to find the perfect balance between the web site’s design and functionality.
Asymptotix implements interactive solutions for European companies. From corporate websites to social communities, our clients will tell you an investment in building a scalable online experience will deliver long-term tangible benefits.
Based in Luxembourg we can help you all over Europe. Our multi-lingual team can work with projects and speak your language! Read more...