Tag Archive: Bailout

In Unprecedented Intervention, Swiss Central Bank Bails Out Firm That Prints Swiss Banknotes

  In the most ironic story of the day, the company that makes the paper that Swiss banknotes are printed on was just bailed out by the money-printing, stock-purchasing, plunge-protecting, savior-of-global equities…Swiss National Bank. While The SNB has a long and checkered history of buying shares in companies… as we have detailed numerous times.

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The VIX Will Be Over 100 due to Central Bank Created Tail Risk

We discuss the manner in which Central Banks have destroyed financial markets, and have the stage for what I label as the Red Swan Event in this video. When the Swiss National Bank holds risky Tech stocks in its portfolio, we are in unchartered territory!

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Italian Euro Exit: Why it Might Come in some Years and Why it Will Help the Euro Zone and Italy

Italy has three options: 1. exit the euro zone and devalue the currency; 2. remain in the euro zone and devalue salaries. 3. go for Japan-like decades-long slow growth with stagnating wages, but also with falling inflation and (positive news!) falling bond yields.

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New Wrinkle in European Bail-In Efforts

European Court of Justice could rule on July 19 that private investors do not have to be bailed in before public money can be used to recapitalize banks. Italy stands to gain the most, at least immediately, from such a judgment. Italian bank shares recovered after initial weakness.

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The Transfer Union from South to North since 2008: Wolfgang Schäuble, the Evil Genius of the Euro Crisis

Wolfgang Schäuble has become the evil genius of the euro crisis. He has understood that the Cyprus crisis won't lead to a bank-run and collapse of capital markets. We all know that the US is now recovering.

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Let Cyprus go Iceland! or Make Russians Believe it Were

While UBS  and a certain Mr Draghi are still warning that a bankruptcy would...

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The Big Swiss Faustian Bargain: Differences between SNB, ECB and Fed Money Printing Explained

Potential losses due to money printing are for the Fed: 1.2% of GDP, Bundesbank: 5% of GDP, SNB: 12% of GDP.

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History: The Lost 1980s Decade in Latin America

Peripheral Europe is going to follow step and step the Mexican and the resulting Latin American debt crisis of the 1980s.

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German Economists and Merkel, the Implicit Followers of the Gold Standard

With ECB's OMT & "conditionality", that requires austerity and implicitly reduction of salaries in European periphery, Merkel & German economists have created consequences similar to a gold-standard.

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The Euro Crisis: Details and chronology and the German Perspective on it

The history of EU reforms, bailouts during the euro crisis and the German perspective on them

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The Eurozone crisis between euro-morons and zombie-bankers



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Eurobonds, fiscal or banking union are all pure utopia

Germany’s stance in the euro crisis: More than ESM will not be possible for many years updated on August 31, 2012   German politicians and the German Bundesbank believe that the Euro crisis can be only solved by supply side reforms as formulated in the Euro Plus Pact, reforms that were already successfully introduced during the Thatcher/Reagan era in the …

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The End of ECB Rate Cuts or Draghi against Weidmann to be Continued..

  Even in the unlikely case of a fiscal union, the conflict “Draghi against Weidmann”, between the ECB and the Bundesbank will continue for years. The ECB mandate and european inflation figures do not allow for excessive ECB rate cuts or for state financing via the printing press, but Draghi wants to help his struggling …

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Target2 Explanation and Discussion



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How former central bankers stepped up against the central banks

There are already three former European central bankers who criticize more or less openly the European Central Bank (ECB).

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All roads lead to a euro zone break-up

For us all roads lead to a euro zone break-up and multiple sovereign defaults.   Our reasoning can be summarized as follows: Equities are worthless when associated debt becomes encumbered (risk capital takes the  first loss). Equity is not an asset; it is merely the remainder that is left over once debt is subtracted from …

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Otmar Issing’s new book on the euro crisis

  We well remember when the über-bailouter of the Financial Times Wolfgang Münchau claimed that except some old economy professors like Otmar Issing nobody in Germany would like to abolish the euro. According to Münchau the euro can be saved only via a fiscal and a banking union. The response to Münchau’s post could be … Continue reading...

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Guest Post: Six Reasons Why Italy May Exit the Euro Before Spain; Ultimate Occupy Movement

Six Reasons Why Italy May Exit Before Spain 1) Rise of the Five Star Movement 2) 44% of Italians view the euro negatively, only 30% favorably. That is biggest negative spread in the eurozone. In Spain more view the euro positively than negative, albeit by a small 4 percentage point spread.

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