“Watch your back Europe”
Something is wrong! Something is wrong with the way the dollar stay strong as a global trading currency survive one storm after another. There has been a bookstore written about the falling dollar and widening of the U.S. public debt. Yet know the dollar continues to survive. Has it all to make with the power [...]
Stressed? No, hyper-nervous!
Europe is following the American stress tests for major banks. What happens if the economy falls 3%? In one simulation, the banks face rising interest rates, falling currencies and stagnant economic activity. Are European banks able to survive the stress test? According to European Bank President Trichet, it is!
Last Thursday, the ECB president did say [...]
The deficits climax
It always starts with denial. An uneasy sense of doom as the wind blows through the trees when the storm is coming. We know that impending disaster may occur. We know that smoke also belongs to fire but don’t act like it is a dangerous situation. We keep doing what we always do. Just the [...]
Neo-Keynes! “A new period in world history
The golden age of deregulation and neo-liberal thinking is gone forever. Down with free markets. We are going back to collective regulation of the markets. This week, the Senate of the U.S. agreed on how the banking industry regulates and how this neat dog keeps walking next to the boss. It is the beginning of [...]
The bulls have to laugh
“A crisis!” Is there a crisis? Last week the bulls had a good laugh at all those who think that a second economic crisis is breaking out. A successful loan to Spain proves that the Bulls are right. There is enough confidence in financial institutions, and Europe has solved the problems well. So we can [...]
Payback time
What goes around comes around! It was the investment bank Goldman Sachs who invented the credit default swaps. This bank has also directly been aware of the dangerous side of these mortgage insurance policies. Goldman came out as the winner of the credit crisis in 2008, the only bank that was still standing firm. But [...]
‘Deal with the consequences’
Economic growth and debt. It’s like the chicken and the egg. Who came first? And can the one exist without the other? That is the status quo of this crisis. You cannot solve one without sacrificing the other. Debts can only be solved by paying them off and before you start cutting your budget you [...]
