Stories The Greek crisis : the Danaides’ barrel ?
Back on the Greek saga or the largest bankruptcy in the 21st century without credit event trigger (to date). The succession of bailout plans shows that we do not simply resolve the insolvency of a country by emergency (...)
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Opinion Central Banks : the global financial system trashcans ?
Institutionalized monetization condemns central banks to become the international financial system trashcans and, despite German opposition, it is likely to be the same for the ECB.
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Regulation Basel III: regulators seem to ignore market failures
The changes in our regulatory framework (BASEL 3) and the widespread use of inappropriate IFRS rules will not solve the imbalances of the international financial and economic system
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Financial crisis Back on the true origins of the crisis
More than 4 years after the official start, now where everyone wonders how we will emerge from this ongoing crisis, let’s come back for a moment on the true origins.
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Opinion The Euro will survive, but not the current Euro zone !
If the existence of the euro is not challenged, it is the case of the euro zone in its current configuration. In the same way that cohabitation between countries with maintaining parity exchange had become impossible in the EMS, cohabitation has become impossible within (...)
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Opinion Mathematical models in finance and embedded risk underestimation
The statistical assumption of normal (log-normal) distribution of stock returns (prices) is not that strong and tail events’ occurrence is largely undervalued. Nevertheless, this modeling framework has been widely used for strong (...)
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Note 10 proposals to rebuild finance and monetary macroeconomics
Rethink monetary policy and its objectives, reform our accounting and prudential environment, review the return on equity standards, regulate the prices of certain assets...
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Regulation Reconciling bank processing and prudential regulation
The introduction of new liquidity ratios could undermine banking core business
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Opinion Perspective and real solvency of banks
Can a universal bank go bankrupt ? An objective, rigorous and professional answer is built in three stages: credibility of the banks performed stress tests - assessment of prudential regulation to come - understanding the evolution of the banking business (...)
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Strategy Investing during market turmoil
The idea that considers equity investing as long term has simply become absurd nowadays and has been so during the last 10 years. Let us be reassured. Opportunities will still be around. The only real question nowadays is how to allocate between real assets and financial (...)
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Note Strategic tasks of central banks: focus on the ECB
Beyond the traditional measures and in a context of systemic risk, we wonder about what specifically should be the strategic tasks of a central bank
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Note The frantic flight to liquidity and solvency
Some markets have been exhibiting dysfunctions for nearly 4 years. The flight to liquidity and compliance with solvency requirements of banks and states with financial issues, have been - and still is - only ensured by non-conventional financing provisions and emergency (...)
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Strategy Financial markets: hedging against new structural risks and stagflation
There are at least four new structural risks to consider: regulation, Middle East, euro zone’s crisis, and again the idea of a change in growth model of emerging countries.
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Opinion Again and again the bank stress tests
Certainly it never ceases to write about the bank stress tests since it keeps getting more into banks; if proof were needed of the total lack of credibility of those made up to now
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Opinion The Euro will survive In fine !
We do not believe or at least most of the implosion scenarios of the euro zone regardless of the terms. -Not because we would be trying to find one or several sustainable solutions to the crisis of sovereign debt, but because such a process would cost too much to everybody (...)
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