tag:blogger.com,1999:blog-24016165.post6622331808907560822..comments2023-08-23T16:00:00.292+01:00Comments on PPP Lusofonia: EU-wide deposit guarantees NOWPPP Lusofoniahttp://www.blogger.com/profile/13027335388583446474noreply@blogger.comBlogger19125tag:blogger.com,1999:blog-24016165.post-54401130717894531422012-07-28T09:17:30.622+01:002012-07-28T09:17:30.622+01:00The opposition to the creation of a robust Europea...The opposition to the creation of a robust European Deposit Insurance Scheme shows a distressing lack of appreciation for the new convertibility risk in the Eurozone and for the disastrous impact of capital flight on the European banking system in a context of NO devaluation, NO capital controls and NO independent monetary policy.PPP Lusofoniahttps://www.blogger.com/profile/13027335388583446474noreply@blogger.comtag:blogger.com,1999:blog-24016165.post-75384725629155095072012-07-28T02:09:10.934+01:002012-07-28T02:09:10.934+01:00Elke König head of BaFin, the German financial reg...Elke König head of BaFin, the German financial regulator is against creation of an European Deposit Guarantee scheme, which reflects a lack of appreciation of the impact of "convertibility risk" on capital flight and bank instability. <br /><br />http://www.spiegel.de/international/business/interview-with-bafin-head-elke-koenig-on-changes-in-banking-regulations-a-846619.htmlWho needs deposit insurance?http://www.spiegel.de/international/business/interview-with-bafin-head-elke-koenig-on-changes-in-banking-regulations-a-846619.htmlnoreply@blogger.comtag:blogger.com,1999:blog-24016165.post-49580456376770763572012-06-28T10:26:08.065+01:002012-06-28T10:26:08.065+01:00Signs of the reversal of capital flight as some de...Signs of the reversal of capital flight as some deposits return to banks in Greeceekathimerini.comhttp://ekathimerini.com/4dcgi/_w_articles_wsite2_4565_27/06/2012_449376noreply@blogger.comtag:blogger.com,1999:blog-24016165.post-36295655535155136982012-06-28T00:23:08.578+01:002012-06-28T00:23:08.578+01:00The critical issue is that the Target2 imbalances ...The critical issue is that the Target2 imbalances are an unintended and unsustainable consequence of the mishandling of the “sudden stop” or retreat phase of the tsunami of hot-money credit that inundated the borrowing countries. <br /> Official national and multilateral creditors such as the NCBs and the ECB have been to ready to facilitate the withdrawal of speculative private investors, thusTARGET2 e a fuga de capitais 2http://ftalphaville.ft.com/blog/2012/06/27/1062271/that-target2-presentation/noreply@blogger.comtag:blogger.com,1999:blog-24016165.post-78482852698804856982012-06-15T16:18:26.146+01:002012-06-15T16:18:26.146+01:00The excessive lending to the fragile periphery eco...The excessive lending to the fragile periphery economies demonstrates the failure of "home rule" (im)prudential regulation, which allowed leading European banks to reach leverage of 49X. <br />The Greek austerity program placed heavy burdens on local investors which were subjected to CAC haircuts, while external investors were able to reduce their exposures thanks to the ECB funding. <BIS recommends European deposit insurancehttp://news.indialocals.com/read/2012/06/12/ZmDmLzDjMTWuKmRkZGZkAmR=/full-story-ec--bis-chiefs-call-for-eu-banking-unionnoreply@blogger.comtag:blogger.com,1999:blog-24016165.post-2514369199436424392012-06-15T15:30:05.464+01:002012-06-15T15:30:05.464+01:00O indicador de poupança APFIPP/UCP atingiu em Mai...O indicador de poupança APFIPP/UCP atingiu em Maio os 109,7 pontos, o valor mais alto desde meados de 2003. <br /><br />O indicador, que sugere que a poupança das família, retomou a tendência crescente, tem o último trimestre de 2000 como o valor base de 100, equivalente a uma taxa de poupança de 8% do PIB, um nível muito baixo em termos comparativos. Cada 12,5 pontos do indicador representa Poupança aumentahttp://economia.publico.pt/Noticia/poupanca-das-familias-volta-a-crescer-1550475noreply@blogger.comtag:blogger.com,1999:blog-24016165.post-21438390724542191782012-06-15T11:34:44.557+01:002012-06-15T11:34:44.557+01:00Argentina and Mexico tried, unsucessfully, to keep...Argentina and Mexico tried, unsucessfully, to keep their exchange rates fixed, but none of the country mentioned in the article are good examples for the current Eurozone problems, because they all devalued in the end. For someone with dollars, the shopping was great on Calle Florida after an exchange rate storm.<br /><br />There seem to be no case studies yet of successful external adjustments PPP Lusofoniahttps://www.blogger.com/profile/13027335388583446474noreply@blogger.comtag:blogger.com,1999:blog-24016165.post-66635866436274492222012-06-15T11:30:42.620+01:002012-06-15T11:30:42.620+01:00Surplus countries don't have to stop exporting...Surplus countries don't have to stop exporting, but they have to stop selling on credit. There are real limits to diverging current account balances and economic history is full of horror stories.<br /><br />Predatory lending is a reality. There is no virgin conception when it comes to debt, and paternity is easy enough to trace.<br /><br />After all, imprudent lending is the whole "PPP Lusofoniahttps://www.blogger.com/profile/13027335388583446474noreply@blogger.comtag:blogger.com,1999:blog-24016165.post-84772235388936446482012-06-15T11:29:17.923+01:002012-06-15T11:29:17.923+01:00Polarization of fortunes occurs between net export...Polarization of fortunes occurs between net exporters and net importers, not necessarily north/south. <br />But this divergence eventually hits natural limits, to the extent that the net importers accumulate too much external debt and become mortgaged to the net exporters. <br />The real problem is that the external adjustment burden is falling entirely on the borrowing countries of the EurozonePPP Lusofoniahttps://www.blogger.com/profile/13027335388583446474noreply@blogger.comtag:blogger.com,1999:blog-24016165.post-47007598661849856262012-06-13T14:30:38.677+01:002012-06-13T14:30:38.677+01:00Yes, the Single Market and the Single Currency wer...Yes, the Single Market and the Single Currency were badly designed, but easy credit fed the monster. CAB balances are like swings of a pendulum: unscontrained they can become uncontrollable. <br /><br />As a former bank credit officer, I would emphasize the role of banks in intermediating risk between the net savers and the net borrowers, and in keeping both on a short leash. This is the Easy credit fed the Euro monsterhttps://www.hightable.com/euro-zone/discussion/what-is-the-root-cause-of-the-greece-debt-crisis-and-its-overall-effect-on-the-euro-zonenoreply@blogger.comtag:blogger.com,1999:blog-24016165.post-38239565482285484082012-06-13T14:29:04.906+01:002012-06-13T14:29:04.906+01:00The immediate cause of the Greek debt crisis is th...The immediate cause of the Greek debt crisis is the divergence in the CAB surpluses and deficits among Eurozone members, reaching +8% of GDP in Germany and -13% of GDP in Greece (see my PPP Lusofonia blog post "Eurozone Tests the Limits of Divergence" http://ppplusofonia.blogspot.pt/2011/12/eurozone-crisis-tests-limits-of.html. Behind this, there are a lot of errors by a lot of Root cause of the crisishttps://www.hightable.com/euro-zone/discussion/what-is-the-root-cause-of-the-greece-debt-crisis-and-its-overall-effect-on-the-euro-zonenoreply@blogger.comtag:blogger.com,1999:blog-24016165.post-52672122631051261352012-06-13T14:25:32.763+01:002012-06-13T14:25:32.763+01:00The Eurozone continues to test the limits of balan...The Eurozone continues to test the limits of balance of payments divergenceTesting, testing 1,2,3http://libertystreeteconomics.newyorkfed.org/2011/12/central-bank-imbalances-in-the-euro-area.htmlnoreply@blogger.comtag:blogger.com,1999:blog-24016165.post-22475642635420588972012-06-07T19:52:25.891+01:002012-06-07T19:52:25.891+01:00Com um bailout, os credores conseguem ser reembols...Com um bailout, os credores conseguem ser reembolsados em vez de serem obrigados a refinanciar os seus créditos, passando a suas exposições de créditos aos credores oficiais como ECB, o FMI e os outros países da Eurozone, etc. <br />E ainda dizem que não querem mutualização...PPP Lusofoniahttps://www.blogger.com/profile/13027335388583446474noreply@blogger.comtag:blogger.com,1999:blog-24016165.post-48361384152478449902012-06-07T10:35:24.463+01:002012-06-07T10:35:24.463+01:00Merkel may be forgetting the lessons of Herbert Ho...Merkel may be forgetting the lessons of Herbert Hoover <br />See<br /><a href="http://entreonadaeoinfinito.wordpress.com/tag/herbert-hoover/" rel="nofollow">http://entreonadaeoinfinito.wordpress.com/tag/herbert-hoover/</a>PPP Lusofoniahttps://www.blogger.com/profile/13027335388583446474noreply@blogger.comtag:blogger.com,1999:blog-24016165.post-46313610809478512932012-05-26T01:34:42.465+01:002012-05-26T01:34:42.465+01:00Ver Mariana Abrantes de Sousa na Comissão Executiv...Ver Mariana Abrantes de Sousa na Comissão Executiva, ETV <br />transmitida sábado às 20h e domingo às 9h.<br />Ver <a href="http://tv.economico.sapo.pt/" rel="nofollow">http://tv.economico.sapo.pt/</a>PPP Lusofoniahttps://www.blogger.com/profile/13027335388583446474noreply@blogger.comtag:blogger.com,1999:blog-24016165.post-27262495487866477712012-05-25T22:42:27.057+01:002012-05-25T22:42:27.057+01:00Germany is under the illusion that it can prosper ...Germany is under the illusion that it can prosper at the expense of the impoverishment of its trading partners. <br />Volkswagon banks want to finance more imports of German cars into Portugal. <br />The more we import the more impoverished we become. <br />But, ultimately, a creditor can be no better than its borrowers, though it may be a long time before it feels the pain.Exportador compulsivonoreply@blogger.comtag:blogger.com,1999:blog-24016165.post-84325971335841831682012-05-25T22:29:53.631+01:002012-05-25T22:29:53.631+01:00...a contagion can only be avoided if the threat o......a contagion can only be avoided if the threat of capital flight is addressed via some sort of pan-eurozone deposit guarantee plus additional ECB liquidity to those banks that are affected by this capital flight (perhaps through another LTRO). In addition, the ECB may have to commit to additional QE-like bond purchases to keep sovereign funding costs down. At the same time, the fiscal pact mustFidelity Viewpoints May18https://www.fidelity.com/viewpoints/europe-abyssnoreply@blogger.comtag:blogger.com,1999:blog-24016165.post-22980693479686883562012-05-25T18:44:38.491+01:002012-05-25T18:44:38.491+01:00It is good to see that Germany is finally paying ...It is good to see that Germany is finally paying some reluctant attention to the growth (or lack thereof) of its trading partners. The Growth Plan is welcome but it would better start at the beginning:<br />1. EU-wide deposit insurance scheme, to stabilize local bank funding and stanch capital flight. Protecting local savers and investors is a necessary precondition to any sustainable solution.PPP Lusofoniahttps://www.blogger.com/profile/13027335388583446474noreply@blogger.comtag:blogger.com,1999:blog-24016165.post-34078371125523553202012-05-24T09:21:34.266+01:002012-05-24T09:21:34.266+01:00Como financiar um esquema de garantia de depositos...Como financiar um esquema de garantia de depositos a nível Europeu? <br /><br />De imediato, o financiamento tem que vir da mesma fonte que vem o TARGET2, o Bundesbank.<br />A prazo, a guarantia funcionaria como um seguro, com os bancos e os depositantes a contribuirem prémiosPPP Lusofoniahttps://www.blogger.com/profile/13027335388583446474noreply@blogger.com