Mario Draghi didn’t do it but Kim Jong-un did

Inauguration of the European Central Bank's new premises on 18 March 2015 in Frankfurt am Main, Germany. Mario Draghi (in the middle) cuts the ribbon. (European Central Bank Audiovisual Services).

Last Thursday, Mario Draghi, the President of the European Central Bank, was unable to move the capital and money markets with his customary monetary policy Press conference in Frankfurt am Main. On the contrary, North Korea’s leader Kim Jong-un, a global castoff, did it the next day just by pressing a button. However, it took […]

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

Deutsche Bank Towers – View of the entrance. Headquarters in Frankfurt am Main. (Deutsche Bank Audiovisual Services).

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 […]

Brexit casts a shadow over the LSE – Deutsche Börse merger: a tracer of how or if brexit is to be implemented

Deutsche Börse. The main building in Frankfurt am Main. No need to say that last week the London Stock Exchange Group plc (LSEG) shareholders approved the merger with the German bourse with the astonishing 99.98%. It is clear that, after 23 June, London begs for the merger. (Deutsche Börse Audiovisual Services).

One of the most direct and important consequences of the Brexit vote is the uncertainty it casts on the merger of Europe’s largest stock exchanges and clearing houses, the London Stock Exchange and the German bourse in Frankfurt, the Deutsche Börse. The two mammoth institutions, the double sun of Europe’s financial universe, last March agreed […]

Why does the whole world want Britain to stay in the EU?

EU meeting on Libya. If Britain leaves the EU similar meetings won’t be possible. From left to right:Mariano Rajoy, Spanish Prime Minister, Matteo Renzi, Italian Prime Minister, Angela Merkel, German Federal Chancellor, David Cameron, UK Prime Minister, Francois Hollande, President of France. Shoot location: Brussels – Belgium. Shoot date: 18/03/2016. Copyright: 'The European Union'.

Foreign leaders, countries, international bodies and major world entities of any kind are supporting the ‘stay’ option for Britain ahead of 23 June referendum, about the country’s position in or out of the European Union. The American President Barack Obama and the Chinese and the Indian governments have expressly supported the ‘stay’ option, to mention […]

Who cares more about taxpayers? The US by being harsh on major banks or the EU still caressing them?

The EU is quite pathetic about establishing a common deposit guarantee scheme in the European Banking Union. In this way the EBU remains always a phantom institution. The sorry state of affairs is pictured above, where the last concrete action towards creating a really European deposit guarantee system took place many months ago (last December). From left to right, Mejra Festić, Vice-Governor of the Central Bank of Slovenia, Thierry Dissaux, Chairman of the Board of the Guarantee Fund for Deposit and Resolution (Fonds de Garantie des Dépôts et de Résolution - FGDR), Dirk Cupei, Head of the Department "Financial market stability" at the Association of German Banks (BdB - Bundesverband deutscher Banken), Alex Kuczynski, Coordinator of the EU Committee of the European Forum of Deposit Insurers (EFDI), Giuseppe Boccuzzi, Director General of the Italian Interbank Deposit Protection Fund, and Joseph Delhaye, Chairman of the Guarantee Deposit Association Luxembourg (Association pour la Garantie des Dépôts Luxembourg - AGDL). Date: 03/12/2015. Location: Brussels - EC/Berlaymont. © European Union, 2015 / Source: EC - Audiovisual Service / Photo: Etienne Ansotte.

The world economy remains more or less motionless or even recedes six years after the financial meltdown, because the banking industry has not yet decided what’s best for its interests. Continue leveraging itself (borrowing) on central bank liquidity in a stagnating environment, or start deleveraging and send the world to another deep recession, if not […]

ECB’s new money bonanza handed out to help the real economy or create new bubbles?

Discussion between Mario Draghi, President of the European Central Bank (ECB), on the right, and Jean-Claude Juncker. Prsident of the European Commission. Location: Brussels - Council/Justus Lipsius. © European Union, 2015 / Source: EC - Audiovisual Service / Photo: Etienne Ansotte.

Last Thursday the European Central Bank announced it will pump extra piles of freshly printed money into Eurozone’s banking system. The President of ECB, Mario Draghi said that he will be delivering €80 billion a month for the public bonds owned by banks for as long as it is needed. On top of this, the […]

What have the banks done to the markets making them unable to bear cheap oil?

Members of the European Parliament make a visit to the stock exchange in Shanghai, China. ( ©European Union EP/PE ).

Last Tuesday, a new steep fall of the price of crude oil by almost 5%, triggered another selloff in all the major capital markets of the world. The New York and the European stock exchanges lost anything between 2% and 3% of their capitalization. One may observe that this development is one of many of […]

Why are the financial markets shivering again?

The financial district of the City of London. Audiovisual service presse.audiovisuel@consilium.europa.eu. © European Union.

The major central banks of the world are currently in the middle of a precise but of dubious results surgical operation on capital markets. On the one hand, the monetary authorities aim at supporting the real economy by injecting more cash into the financial system. On the other, they try to mitigate the risky super […]

WEF Davos 2016 LIVE: Banking moguls continue brandishing financial Armageddon to intimidate us all but in Davos they worry about the very distant future

Davos Switzerland, 19/1/2016 - Leonardo DiCaprio (L), Actor and United Nations Messenger of Peace for Climate and Founder, Leonardo DiCaprio Foundation - LDF, USA, (next to him on the right) Hilde Schwab (C), Chairperson and Co-Founder, Schwab Foundation for Social Entrepreneurship, ( together with her husband Klaus Schwab they founded WEF) and Joseph R. Biden Jr, Vice-President of the United States of America applaud during the Opening of the Annual Meeting 2016 of WEF. WEF swiss -image.ch/Photo Monika Flueckiger.

On Thursday 7n January this newspaper commented that behind the capital markets selloff, which shook the financial world in the first week of this year, were the financial moguls who want to impose their terms to central banks and mainly the American Fed. Since then stock markets keep losing a lot of grounds every day. […]

EU to pay a dear price if the next crisis catches Eurozone stagnant and deflationary; dire statistics from Eurostat

Wolfgang Schäuble, German Federal Minister for Finance, 1st from the left; discussion between Jeroen Dijsselbloem, Dutch Minister for Finance and President of Eurogroup, 2nd from the right, and Valdis Dombrovskis, Vice-President of the European Commission in charge of the Euro 1st from the right. The most important Eurozone dignitaries favoring economic ‘orthodoxy’ are pictured here. Date: 14/08/2015. Location: Brussels - Council/Justus Lipsius. © European Union, 2015 / Source: EC - Audiovisual Service, Shimera/ Photo: Etienne Ansotte.

Amidst the historically worst first week of a year since stock exchange records exist, the Eurozone economy remains stagnant and appears clearly unable to offer itself and the rest of the global economy a sigh of relief. All along the first week of the New Year Eurostat kept airing quite disappointing statistics for the Eurozone […]