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  • EU Banking Pact Version 2.0: EU’s Latest Nail In Its Own Coffin

    From fxempire.com

    The New Agreement Still Isn’t Good Enough, Same Obstacles, Same Inadequate Results In late December 2013 EU member states agreed on an EU banking union plan. It was widely criticized as too slow implement and too underfunded to provide a credible guarantee of EU banking stability in case of bank failures. It also left individual member states without any outside aid for many years to come. The final EU Parliament approved version is still too slow and underfunded to consider the EU banking system as stable as that of the US or Japan. It remains a ticking time bomb under the EZ and EUR, only now it’s a smaller ... (full story)

Waste of time reading this. Same old "moneyprinting solves all troubles" stupidity over and over again.
Quoting althar
Waste of time reading this. Same old "moneyprinting solves all troubles" stupidity over and over again.
If money printing solved anything, the world would be booming by now
When the facts change I change my mind, what do you do sir
point of article not that they think money printing will solve problems, but that EU Parliament reps were last ones who could negotiate with member states for a realistic banking union that could act quickly enough to close a bad bank and had enough common funding to provide depositor insurance and other guarantees to prevent one sovereign or bank solvency problem from spreading.

Also of major significance is ECB stress tests coming and even this flimsy safety net not present. ECB has already eased the 'rigorous stress tests - see
http://www.zerohedge.com/news/2014-01-15/ecb-eases-european-bank-street-25-lowers-capital-ratio-requirement-8-6, so, so much for rigorous stress tests. Could be interesting summer if enough banks can't pass.

well worth noting for those with longer term EURUSD positions
Cliff`s weekly comments are much appreciated, they save me a lot of time reading other "academic theory " fluffed up articles. Read them for a few weeks consistently and you know what I mean.

He was nowhere saying that money printing solves anything, instead he points out what the inherent flaws of this stress test will be.

Who in Europe shouldn`t worry, with previous bank tests letting Dexia Bank pass with flying colours, only to see it stumble and depend entirely on outside funding ?

Thank you.
Be like water.
Hmmm... I'd give him a B- for content and A+ for his efforts at self promotion.


Quoting msmarple
Cliff`s weekly comments are much appreciated, they save me a lot of time reading other "academic theory " fluffed up articles. Read them for a few weeks consistently and you know what I mean.

He was nowhere saying that money printing solves anything, instead he points out what the inherent flaws of this stress test will be.

Who in Europe shouldn`t worry, with previous bank tests letting Dexia Bank pass with flying colours, only to see it stumble and depend entirely on outside funding ?

Thank you.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
So what happens if Spain or Italy have multiple bad banks needing recap funds?
Currently they're on their own unless they accept OMT and its conditions, which Spain rejected last time, figuring (correctly) that it presented enough contagion risk to force a better deal. Italy has bigger economy, so should be able to do same. Basically some variation of lending them printed funds they probably can't repay.
Quoting msmarple
Cliff`s weekly comments are much appreciated, they save me a lot of time reading other "academic theory " fluffed up articles. Read them for a few weeks consistently and you know what I mean.

He was nowhere saying that money printing solves anything, instead he points out what the inherent flaws of this stress test will be.

Who in Europe shouldn`t worry, with previous bank tests letting Dexia Bank pass with flying colours, only to see it stumble and depend entirely on outside funding ?

Thank you.
and thank you.
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  • Posted: Mar 23, 2014 2:38pm
  • Submitted by:
     Cliff Wachtel
    Category: Fundamental Analysis
    Comments: 8  /  Views: 2,247