Yellen and Draghi tell Trump and markets not to expedite the next crisis

The disappointment of financial markets with the lack of hints about monetary policy from the Jackson Hole gathering of central bankers is understandable. Both Janet Yellen, US Federal Reserve System Chair and Mario Draghi, the European Central Bank President while keeping their policy guidelines unchanged, choose to forcibly attack the demands of bankers – supported […]

Why the ECB suddenly decided to flood banks with money?

It was not a coincidence that the Governing Council of the European Central Bank  suddenly decided unanimously last week to further relax its monetary policy promising more and cheaper loans to all banks, exactly at a time when the US central bank, the Fed, is about to start calling back the trillions of dollars it […]

Banks get new capital for free and citizens pay the bill

  Yesterday the European Commission approved “temporarily” the recapitalisation of a Portuguese bank Banif with €1.1 billion. The Commission will take a final decision on the compatibility of the capital injection with EU state aid rules after the assessment of the restructuring measures will be proposed by Portugal. Presumably those restructuring measures will be layoffs […]

How many more financial crises in the West can the world stand?

“After five years of crisis the world economy is weakening again”, states bluntly the very first phrase of the editorial of OECD’s latest economic report, published on 28 November. Actually it couldn’t be differently, because the US economy doesn’t seem to respond well to therapy and Europe is in a much worse state. But let’s […]