tag:blogger.com,1999:blog-36227136.post6888307463032782017..comments2024-01-16T08:40:53.682+00:00Comments on <a href="http://www.openeurope.org.uk">Open Europe</a>: Eurozone compromise on using ESM to directly recapitalise banks - a stopgap at best?OEhttp://www.blogger.com/profile/00556463374230498875noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-36227136.post-76355355555853807632013-06-24T11:57:21.011+01:002013-06-24T11:57:21.011+01:00@Jesper
Some remarks:
1. The ECB is hardly a guara...@Jesper<br />Some remarks:<br />1. The ECB is hardly a guarantee that no bankingcrisis can develop in the future. It missed the current one completely for starters. And it is really helpful in creating the next one by allowing PIIGS banks to go massively into PIIGS bonds. It is simply trying to mix politics (saving PIIGS and the Euro), with proper CBing and not very well.<br /><br />2. One of the problems is that this way a lot of people's own responsability is taken away. Savers are not forced to say goodbye to rubbish banks. Spain as an example has not only an issue in relation with the North of the EZ. It also has one internally half at least of the banking sector is undiluted rubbish. And that turn over in numbers it is probably even much higher. Most of its Cajas should get one between the eyes if having a healthy banking sector in the future is a priority. Horribly managed 19th century like institutions.<br />Anyway the EU and Spain even more seem very reluctant to do something about it. It looks like Spain is waiting for somebody else to pick up the bill. Systems that allow that are usually not very successful. <br />And the pressure the ECB cut put on them now, is simply not used as well.<br />I truely believe that proper accountancy rules would do a lot more benefit. Now the rules are purely legalised (what you can get away with) if you can have a proper 'old fashioned' BS and P&L it is much easier to solve risk problems, rescue things, recapitalise banks, liquidate bad banks and above all manage things. Riknoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-45895593180084568112013-06-21T13:05:57.607+01:002013-06-21T13:05:57.607+01:00At least this agreement concerned something that m...At least this agreement concerned something that might best be handled on a transnational basis - contrasted with the handling of olive-oil... <br />Rule of thumb should be: If something is important enough to be dealt with at minister level then it MIGHT possibly be something to be agreed on a transnational level.<br /><br />The agreement appear to meet some criteria for success:<br />-it is an agreement and not having an agreement would cause a loss of face for some important people.<br />-on the other hand the agreement is at the moment so vague it is almost meaningless. And that is important for other important people.<br /><br />I'd say that it is another example of imprudent deal-making: -Assumptions have been made, countries are still so different and ivorytower-living decisionmakers are not aware of major differences which will change the outcome resulting from any agreement<br />-Details are not yet specified and the devil is in the detail. ECJ will be the body responsible for interpreting the details and most likely that will mean that further competences risk being transferred (covertly?) from nations to EU-bodies. Jespernoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-41972973293997526742013-06-21T12:15:22.442+01:002013-06-21T12:15:22.442+01:00They never make 2014. Well may be year end if they...They never make 2014. Well may be year end if they are very lucky.<br /><br />Present ESM is before the GCC, ruling say October. Approval current ESM can first realistically happen after that.<br />Subsequently the ESM treaty/ German inplementation law has to be changed. It simply requires a change of the German law. Which undoubtedly will give rise to another GCC case.<br />Subsequently ESM has to decide to do the thing (which if all the prior steps are taken looks a formality.<br /><br />Finns are imho also doubtful. But probably can be formally overruled. Which is politically however not the wisest move. Riknoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-7766438414937646322013-06-21T11:53:38.817+01:002013-06-21T11:53:38.817+01:00PONZI-squaredPONZI-squaredChrishttps://www.blogger.com/profile/18264885537836372495noreply@blogger.comtag:blogger.com,1999:blog-36227136.post-48821951412835017532013-06-21T10:57:30.986+01:002013-06-21T10:57:30.986+01:00Very great , thank youVery great , thank youayman khlifathttp://www.aymankhlifat.com/noreply@blogger.com