Central Banks

“Uncreative” Destruction: The Troika’s Hostile Takeover of Europe

by Don Quijones •  • Comments Off on “Uncreative” Destruction: The Troika’s Hostile Takeover of Europe

By Don Quijones: The story is now playing out across Europe’s bailed-out nations. The losers are by and large the poor and middle classes, while the beneficiaries are the same as always: the world’s largest multinational corporations and banks.

What Happens When ‘All Assets Have Become Too Expensive?’

by Wolf Richter •  • Comments Off on What Happens When ‘All Assets Have Become Too Expensive?’

A report from the asset management and investment banking division of Groupe BPCE, the second largest bank in France, predicts what daredevil voices at the maligned margin of financial analysis have worried about for a while: another global financial panic.

This Chart Shows When the Smart Money Saw The Abenomics Fail

by Wolf Richter •  • Comments Off on This Chart Shows When the Smart Money Saw The Abenomics Fail

This year has been lumpy for stocks around the world. Gone are the wild rallies followed by mild rallies interrupted by minor downticks, followed by more rallies. That’s so 2013. It’s as if on December 31, someone turned off the spigot. But in Japan, it turned into a rout.

Head of EU’s Newfangled Bank Regulator: Markets Are Dumb, Pumps Stocks Of Teetering Banks To Keep them From Toppling

by Wolf Richter •  • Comments Off on Head of EU’s Newfangled Bank Regulator: Markets Are Dumb, Pumps Stocks Of Teetering Banks To Keep them From Toppling

It’s not often that a bank regulator proclaims stocks of teetering banks are undervalued because markets are too dumb to value them correctly. That’s what Danièle Nouy, chair of the ECB’s Single Supervisory Mechanism just proclaimed. She has a motive.

Dollar Hegemony Under Attack By Export-Superpowers Germany and China

by Wolf Richter •  • Comments Off on Dollar Hegemony Under Attack By Export-Superpowers Germany and China

The word dollar didn’t even come up when the Bundesbank signed the agreement with the People’s Bank of China. President Xi Jinping and Chancellor Angela Merkel looked on. It was serious business. Everyone knew what this was about. No one had to say it.

Total Abenomics Fail Slams Japan Where It Hurts Most

by Wolf Richter •  • Comments Off on Total Abenomics Fail Slams Japan Where It Hurts Most

Japanese corporations no longer even try to invest in Japan, but they’re falling all over each other grabbing the Bank of Japan’s freshly printed dough to invest it overseas.

French Megabank: No “Drastic Crisis” in France, It Will Be “Slow And Over Time”

by Wolf Richter •  • Comments Off on French Megabank: No “Drastic Crisis” in France, It Will Be “Slow And Over Time”

Finally we know why French government debt and French stocks have performed so well, despite the crummy economy, and why France has been spared so far the fate of Cyprus: the fiasco won’t happen suddenly in France, the bank reported. It will be slow and torturous.

Kremlin: If The US Tries To Hurt Russia’s Economy, Russia Will Target The Dollar

by Wolf Richter •  • Comments Off on Kremlin: If The US Tries To Hurt Russia’s Economy, Russia Will Target The Dollar

The first official warning shot was fired before an all-out assault on the dollar system begins. Not by a Putin advisor that can be brushed off, but by Alexey Ulyukaev, Russia’s Minister of Economy and former Deputy Chairman of the Central Bank. A major escalation.

The Relentless, Systematic Tear-Down Of The Dollar Hegemony

by Wolf Richter •  • Comments Off on The Relentless, Systematic Tear-Down Of The Dollar Hegemony

How long before the dollar surrenders its status as world reserve currency and number-one payment currency to the Chinese yuan and to that other currency everyone loathes?

The Madness of Abenomics In One (Crazy) Chart

by Wolf Richter •  • Comments Off on The Madness of Abenomics In One (Crazy) Chart

Abenomics, a democratically elected economic religion, was to save Japan. But the plan has already gone to heck. Not in small increments over the years with minor ups and downs, but in relentless month-to-month leaps whose viciousness surprised even the deep cynic in me.