Financial system risk is elevated and global standards are essential in managing cross-border infrastructure investment

This article is brought to you in association with OECD. A new OECD report, the 2018 Business and Finance Outlook, highlights a number of major risks having the potential to disrupt global economic growth. It notes that the gradual normalisation of monetary policy in an environment of growing debt will be a major test of whether […]

US-China trade war at point of no return: Washington’s demands go beyond tariffs

It seems the US-China trade conflict, if not full scale trade war, is entering the phase of no return. Nothing will be as before in the economic and otherwise relations between the two largest economies of the world. Washington appears ready to push its cause to the end, while Beijing still pretends not to understand […]

Draghi’s 2018 compromise: enough money printing to revive inflation and check euro ascent

Last Thursday Mario Draghi, the President of the European Central Bank, reassured the Eurozone banking conglomerates they will continue being blessed with zero cost money, well into the foreseeable future. He stated, “one thing is clear; the bottom line is that interest rates will stay, as it’s written here, at the present levels (zero for […]

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 […]

Deutsche Bank: the next financial crisis is here and the lenders need €150 billion from taxpayers

Last Monday David Folkerts-Landau, the chief economist of Deutsche Bank, the ailing largest lender of Germany, in an interview with the prestigious newspaper ‘Die Welt’ stated that European banks must be subsidized with €150 billion in rescue money to recapitalize. Obviously, it will be the taxpayers to once more provide the capital the euro area […]

Why the ECB prepares to flood the markets with more and free of charge euro; everybody needs that now

Mario Draghi’s statement of last Thursday from Malta that the European Central Bank’s “monetary policy accommodation will need to be re-examined at our December monetary policy meeting”, offered a strong support to all major capital markets, with stocks gaining a lot of ground and the euro receding slightly. Understandably, a generous increase of ECB’s monthly […]

‘Free state aid’ for imprudent banks

Over the past few years the Commission’s approval for government rescue of imprudent banks, under the EU state aid rules, has become a cliché. As if those rules do not exist, when it comes to banks. On every other state aid case granted by national governments to the private sector, the Commission remains adamant and […]