Do you believe in netting? — Part 1
On Friday, Jeffrey Snider of Atlantic Capital Management argued that finance now exists for its own exclusive benefit. The thrust of his argument is that derivatives have allowed banks to escape the...
View ArticleDo you believe in netting? — Part 2
In Part one, FT Alphaville asked whether there was reason to doubt the netted derivatives exposures reported by banks. Here, we discuss how netting works (or doesn’t, ahem) when counterparties...
View ArticleUK economy contracts in fourth quarter
Britain’s economy contracted slightly in the last quarter of 2011, official data on Wednesday showed, raising fears of a double dip recession, the FT reports. The data underscore the message on Tuesday...
View ArticleReserve Bank of India: we’re holding rates, YOU sort it out!
Right, we’ve had a few looks at India over the last while — at its crumbling rupee, widely reported deficits and stumbling, ineffective political system. Heck, Standards & Poor’s even got in on the...
View ArticleAnd the rupee just keeps sliding
Miss Prism. That would be delightful. Cecily, you will read your Political Economy in my absence. The chapter on the Fall of the Rupee you may omit. It is somewhat too sensational. Even these metallic...
View ArticleBalkanisierung
Here’s a call from Sober Look on Tuesday — Germany’s growth might be on the cusp of going negative: So much for the hopes and dreams of German decoupling from the Eurozone’s economic troubles. How...
View ArticleGermany’s saviours
Or, a new Bloody Ridiculous Investment Concept to save Germany. From Handelsblatt (in the fine FT Alphaville tradition of Google Translated German):Continue reading: Germany’s saviours
View Article‘Badwill’ in Spain
A hat-tip to David Enrich for the spot. This is from Banco Sabadell’s results at the end of July. It’s all about the consolidation of Banco CAM into its new parent.Continue reading: ‘Badwill’ in Spain
View ArticleSpain’s funding costs post a Draghi-ing
So, we are days from finding out what the ECB is planning to do… or at least, days away from knowing more than we do now. But immediate largesse in the bond market isn’t the only bit of help that...
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Down, down, deeper and down
We are, of course, talking about the Australian dollar — now going head to head with the Syrian pound for the title of the world’s worst performing currency. The latest drop follows a call from Pimco...
View ArticleDon’t try this at home – central banker edition
Central bankers can do many things but they should never, ever attempt humour. To illustrate the point we present the price action in the Australian dollar on Wednesday.Continue reading: Don’t try this...
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