Ok, So the Greece just voted in a landslide to reject further austerity (Good for them). So nobody knows what’s going to happen next. There nothing like a financial crisis to get adrenaline pumping, Might be the chances of Grexit be higher now, but I would not dig in to detail. Would rather move away to the maverick author Nassim Nicolas Taleb who made the points for Bailouts and Prevailing culture in the financial domain
- The main difference between government bailouts and smoking is that in some rare cases the statement “This is my last cigarette “holds true
- The difference between banks and Mafia: banks have better legal regulatory expertise, but Mafia understands the public opinion. Or you can say”Give a man a gun and he can rob a bank. Give a man a bank and he can rob the world”
Continue reading “Greece Bailout Yes or No”
Cyprus Closes Banks Until Next Week as Fear of Runs Continue: Cyprus is reportedly keeping banks closed until..that was 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.
Continue reading “CYPRUS – What next ?”
I like this short list of fixes from Sheila Bair:
1. Break up the “too big to fail” banks
Giant institutions and untested “living wills” is make financial system unstable. When the Fed is artificially keeping lending rates at near zero, that’s a flaw.
Solution: Make ‘em smaller
2. Publicly commit to end bailouts
“Market must punish the boneheads.” We should learn from post-2008 bailouts Continue reading “Fixing the Wall Street”
Source: International Monetary Fund.
It has been correctly quoted that picture speak more than the words. So what does the graph looks like, Not more can be said for them as we focusing on Europe back again. Continue reading “Italy next on the radar – Europe”