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Monetary Policy Is Limited In What It Can Do

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The European Central Bank's (ECB) Benoit Coeure has said that there are limits in what monetary policy can achieve, but that the actions of the ECB have prevented a Eurozone catastrophe. Coeure said that he sees an improvement in financial conditions in the monetary union, but that banks must continue to clean up balance sheets.

Nowonty said that while a fair amount of stabilisation had been achieved in the EU banking sector, and that it makes sense to start the Single Supervisor Mechanism with fewer banks. Link

Deleveraging all over Europe

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Quantitative easing.

ZIRP

What is left?

Real negative interest rates.

And to the state...

Taxation, price controls, wage requirements, currency devaluation.

Edited by cashinmattress

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Nowonty said that while a fair amount of stabilisation had been achieved in the EU banking sector, and that it makes sense to start the Single Supervisor Mechanism with fewer banks.

It looks like Daniele Nouy is set to be installed in the top post.

She looks a bit of a toughie, and much of what I've read about Bank for International Settlements suggests they had some of the most switched on people concerned about a credit crunch, or things getting very overheated anyway.

Although I have some doubts about the costs involved with such bureaucracy + salaries with patrolling the banks. 1,000 posts, and I think I read 6,000 elsewhere the other day. It's probably a lot less expensive than banks helping entitled idiots, thinking they deserve £30m portfolios and lives of luxury, to massively outbid me.

Danièle Nouy Set To Become Guardian or Executioner of 6,000 Eurozone Lenders

Daniele Nouy, a senior official at the Bank of France, looked set to become the European Union's first bank supervisor, following her nomination by the European Central Bank on Wednesday night.

The 62-year-old economist will still have to be confirmed by the European Parliament, where Nouy is to appear for a hearing on November 27.

Bit of background on her.

Madame Nouy set to take on Europe's banks

By Eva Taylor

FRANKFURT Wed Nov 27, 2013 7:32am GMT

... It sounded like Nouy's curriculum vitae. Born in Rennes, Brittany, she began her career by joining the Bank of France in 1974, armed with degrees from two of Paris's elite schools. There were hardly any women working in banking or finance at the time. She started by supervising foreign banks in France, spent a year at the New York branch and eventually worked directly under the head of the French supervisor and his deputy. The next step was to become the deputy when a vacancy arose. Instead, the French treasury pushed through its own candidate, Pierre Duquesne, claiming influence following a bailout of debt-ridden lender Crédit Lyonnais in the mid 1990s.

"It was terrible for her. It was the breaking point in her professional life," said a former Bank of France co-worker. "In reality it wasn't really fair that she didn't get chosen for this post. She was a natural candidate."

Disappointed at home, Nouy turned to the international stage, moving to Basel to join the Bank for International Settlements, known as the central bank of central banks.

... Once the SSM is up and running, Nouy and her team will not only have to monitor banks but also raise the alarm if, for example, asset bubbles begin to form.And the fact that government bonds are still treated by international banking rules as risk-free is seen by some experts - including Nouy - as a cause for concern and in need for adjustment, because the financial crisis proved the opposite.

William White, who was chief economist at the BIS when Nouy worked in Basel, knows the political pressure Nouy will face. "Huge numbers of people are making huge amounts of money and the last thing they want you to do is to take away the punch bowl."

http://uk.reuters.co...E9AQ08120131127

Edited by Venger

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It looks like Daniele Nouy is set to be installed in the top post.

She looks a bit of a toughie, and much of what I've read about Bank for International Settlements suggests they had some of the most switched on people concerned about a credit crunch, or things getting very overheated anyway.

Although I have some doubts about the costs involved with such bureaucracy + salaries with patrolling the banks. 1,000 posts, and I think I read 6,000 elsewhere the other day. It's probably a lot less expensive than banks helping entitled idiots, thinking they deserve £30m portfolios and lives of luxury, to massively outbid me.

Bit of background on her.

http://uk.reuters.co...E9AQ08120131127

Nothing about being a keen hill walker then.

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Nothing about being a keen hill walker then.

Daniele, day one: "I'll be taking a hardline against banks to protect financial stability across europe."

Bankers. day two: "Here's millions of our fiat money. If you take the hardline, it'll become worthless and besides, we'll kill you to death - you're ours now"

Daniele, day three: "I've softened my stance somewhat since yesterday."

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  • 242 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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