Bafin looks a bit naked

Germany’s financial regulator Bafin has come to the rescue and banned naked short selling of eurozone sovereign bonds, CDS and 10 leading German financial stocks. It wasn’t a good idea in 2008 and this is one idea that does not become better with age.

According to a recent study on the effects of the short selling bans of 2008, it only makes a bad situation worse. We don’t really need a study to tell us that, it’s only common sense.

Read more…

Is Apple losing its cool?

iMac, iPod, iPhone. Pretty much everything that Apple [AAPL US] has touched and given a name starting with “i” has been a storming success. However, with the release of iPad Apple seems to losing its touch and rivals have not been idle. Is Apple losing to Microsoft [MSFT US] and Google [GOOG US]?

Read more…

Bernanke again

January 29, 2010 1 comment

Not unexpected but still not great news. Bernanke will lead the Fed for another term.

Many of the senators voting against Bernanke and even those who voted for him argued along the lines of “better the devil you know”. Isn’t there something wrong and totally unnecessary with a vote when you only have one alternative? Isn’t that what the west used to criticize the USSR for when it came to their elections? Only one candidate.

How can the Senate vote on the head of the Fed if they only have one alternative? Off course they will vote for Bernanke no matter how much they don’t like him or how inappropriate he is to run the Fed.

Oh well. The market has to live with him for another term. At least we know the Fed will get it wrong … again. There is some comfort in that!

The crisis of credit Visualized

September 9, 2009 Leave a comment

Now, this is simple enough for anyone to understand. Perhaps even Greenspan and Bernanke can get it now and try to avoid similar mistakes again. Just thought I’d share this video, which is absolutely spot on, as I’ve been criticising the reappointment of Bernanke lately.

The Crisis of Credit Visualized

Categories: Debt Tags: , ,

Crisis will happen again, it’s human nature

September 9, 2009 Leave a comment

It is human nature that will make sure another crisis will happen again, according to Mr Alan Greenspan, the former head of Federal Reserve, in a recent interview with BBC. I couldn’t agree more. However, I think we differ on what part of human nature will be more responsible for the crisis.
Read more…

The case against Bernanke

Reappointing Mr Ben Bernanke as head of the Fed is a mistake, as Stephen Roach correctly concludes in today’s FT. It seems though that Mr Roach is missing the point on Bernanke’s current action.

Mr Bernanke has been no better than Mr Alan Greenspan in understanding the driving forces for this, or any previous recessions and bubbles, and Bernanke is a student of the Great Depression, so he should know. A big driver has always been central bank actions, mostly the creation of cheap money – through low interest rates or as now through what they call quantitative easing. Printing money to you and me!
Read more…

It’s the debt – stupid!

Some stats from the Swedish experience in early 90s. Bad loans 12% of GDP. Total loan losses 10%. GDP contraction 6% over 3 years. House prise fall 20%. Depreciation of SEK 30%. Unemployment in double digits. Stocksmarket halved. Consumer debt to GDP 40%.
Looks roughly like what we’re experiencing right now, with a couple of very important differences. 1) The crisis now is global, back then it was regional. Sweden could devalue and export itself out of a recession. 2) Consumer debt to GDP is now well above 100% in for example US & UK. Read more…

%d bloggers like this: