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Tag Archive: European Union


6 Months The Ban on Naked CDS in Europe

Filed under: Economies, Financial Crisis — 2 Comments
April 30, 2013

The FT has recently done a timely article-on the consequences of the EU‘ ban on the naked CDS.

Blythe Masters, painted portrait Credit Defaul...

Investors are buying protection on European banks on the basis that banks and sovereigns are so intimately linked that any increased risk of a sovereign default will increase the value of a bank CDS in a similar way to a sovereign CDS.
“The big downside of the ban is that it is likely to increase borrowing costs for financials,” said Michael Hampden-Turner, Citigroup credit strategist. View full article »

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Cyprus Reaction

Filed under: Financial Crisis — 3 Comments
March 26, 2013

There has been a lot of negative comment about the Cyprus deal. That is understandable: you can reasonably argue that imagesit will produce crippling austerity; that it is ridden with moral hazard; that it will create a bank run across most of Southern Europe. But what you can’t argue is that it was unexpected.

Too understand the deal in-case If you are in Cyprus :
* You can put money into your bank, but you can’t get it out again. At least you can, through ATMs, but only in very small amounts.
* If you have money on deposit, you can’t take the money out and close the account. And if it’s a time deposit, when it reaches the end of its life, you can’t have the money to spend. You have to roll it over into a new deposit. View full article »

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Cyprus is the Homage

Filed under: Economies — 1 Comment
March 25, 2013

Three months ago, Yanis Varoufakis explained Europe’s bogus growth pact and the papering over the cracks that was imagesbeing done by the IMF and ECB, “The idea here is that, yet again, the Eurogroup-ECB-IMF alliance is not ready, politically, to reveal the truth to its various constituencies.” He was, obviously, correct. This weekend, in a brief BBC Radio interview (below), as Cyprus erupts and brings the European circus back into town, Varoufakis exclaims, “every bailout agreement, beginning with Greece’s in May 2010, seems less logical and more toxic than the previous one.”

In three minutes, the Greek economist illustrates how the leaders are laying waste to the supposed pillars upon which the European Union was founded. View full article »

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CYPRUS – What next ?

Filed under: Financial Crisis — Leave a comment
March 21, 2013

Cyprus Closes Banks Until Next Week as Fear of Runs Continue: Cyprus is reportedly keeping banks closed until..that wasimages the latest we heard from the financial media. What can we make it from it ? where the Bailout has gone wrong ?

Cyprus can’t really be about Cyprus, can it? After all, the banking sector in that country pales in comparison to things like the London Whale trade and the amount of capital the big banks have to raise to meet Basel III.

Some will say it is about depositor insurance. Fair enough.
View full article »

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Euro Zone

Filed under: Financial Crisis — Leave a comment
January 15, 2013

I have always contagion on the negative terms as it has been evolving and spreading  since the 2007.download

Was observing the great Euro zone Yield convergence at Bloomberg from the FT dash-board  -

…let’s not forget about one thing. We speak a lot about contagion when things go poorly, but I believe that there is also contagion, positive contagion, when things go well. And I think this is in play now. There is positive contagion.  - Mario Draghi,  ECB President

The Key Data Points

German 10-year Bund 5 bps higher; View full article »

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Basel Becomes Babel

Filed under: Financial Crisis — 1 Comment
January 4, 2013

A very good analysis done on the various Basel agreements at Bloomberg here are some highlights from it.traders

The first Basel agreement on global banking regulation, adopted in 1988, was 30 pages long and relied on simple arithmetic. The latest update, known as Basel III, runs to 509 pages and includes 78 calculus equations.

The complexity is emblematic of what happened over the past four years View full article »

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Ten highs and ten lows – Nothing for India

Filed under: Economies — Leave a comment
December 30, 2012

As I write this post ..and think about mother India  “In the nineteenth century, the central moral challenge was slavery. In the india-sfSpantwentieth century, it was the battle against totalitarianism. The richest culture of the world where woman is equivalent to god only in books and temples …is suffering  due ton Gender Insensitive Society, Ignorant Govt. Unfortunately the Culture of violence against women still exists ….

The Highs from the globe 2012 :

  1. The definitive discovery of the Higgs boson particle that confirms our capacity to grasp the ways
    View full article »
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Speech of the year by George Soros

Filed under: Economies — Leave a comment
November 19, 2012

George Soros gave a speech this year in June 2012, Could be one of the best speech have heard in the financial domain.

He Started with the Crash of 2008 that has been a widespread recognition, both among economists and the general public, that economic theory has failed. But there is no consensus on the causes and the extent of that failure.

He differentiate economics that is a social science and there is a fundamental difference between the natural and social sciences. View full article »

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Derivatives Known and Unknowns plus Regulators

Filed under: Financial Crisis — Leave a comment
October 20, 2012

Few days back I did the post on OTC Derivatives Market And Reform with the intentions that over-the-counter (OTC)

Playa América

derivatives market is like a rigged poker game. They picture a smoke-filled room, in which unsuspecting clients are mastered by skilful opponents at investment banks known, perhaps appropriately, as dealers. Now regulators are trying to move more of the game into the open, by shifting OTC derivatives trades onto exchanges or electronic platforms by the end of this year, a target agreed on by G20 leaders in 2009.The dead line is unlikely tobe met View full article »

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