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THE NEW “STEWARDSHIP OF FINANCE” CHAIR AT THE VRIJE UNIVERSITEIT BRUSSEL
In September of last year, Paul De Knop, rector of Vrije Universiteit Brussel (VUB), set up a project for a teaching and research chair on the subject of finance seen from an ethical perspective. He put together a multidisciplinary team presided over by Michel Flamée, professor of law at the VUB, and including representatives from…
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WHEN WE’RE NOT MOVING FORWARDS WE’RE GOING BACKWARDS…, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
The European Finance Ministers managed during the course of the night to finalize a minimal agreement, which needs, as usual, to be examined in detail due to its grey areas. They put together a set of nominations to the ECB and the ESM based…
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THOSE RESPONSIBLE FOR THE CRISIS WHO ARE RARELY TALKED ABOUT
Translated from the French by Tim Gupwell
The question of whether a debt contract can be considered as money is central to my book L’argent mode d’emploi (2009). I expose the violence exerted by Joseph Schumpeter (1883-1950), when he imposed the idea that such was the case, and I demonstrated the inanity…
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GUILTY PARTIES WANTED !, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
In accordance with the predictable script, the bond market is under pressure again. The cost of servicing Spanish and Italian debt has continued to increase as their financing plans move forward in little measured steps. The effect of all this is to place an…
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THE MANIPULATION OF THE LIBOR
Translated from the French by Tim Gupwell
In my Friday morning video (in French), I said that when a pirate (Rupert Murdoch) does business with a ship wrecker (the City of London), it tends to weaken the entire system, and I went on to add that this is particularly the case when…
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THIS SYSTEM IS ITS OWN WORST ENEMY, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
In the little game of who won and who lost, what conclusions can be drawn from the recent European council? Interpretations differ widely: some highlight the German Government’s about-turn, who themselves retort that the essence of their position has been preserved intact; others congratulate…
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STICKING TO ONE’S PRINCIPLES…, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
What was the plan being drawn up last week in Rome which Merkel refused to sign up to? The other three participants, Mario Monti, Mariano Rajoy and François Hollande advocated using the EFSF, and in the near future the ESM, directly, to bail-out the…
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TREASURE HUNT, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
Following the clues for the next bail-out of the Spanish banks is proving to be a veritable treasure hunt. To participate, follow the guide!
Initially, the EFSF (European Financial Stability Facility) is going to borrow funds on the markets, using the member states guarantees,…
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SPAIN: BOND MARKET THIS THURSDAY 21St JUNE
Spain managed to borrow 2.22 billion Euros this morning. It was hoping to raise 7.7 billion. The Wall Street Journal pointed out that this was “thanks to demand seen overwhelmingly coming from domestic banks”.
The coupon obtained by lenders for 2 years was 4.706% (compared with 2.069% on the 1st March); over…
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NOTHING TO WORRY ABOUT ! , by François Leclerc
Guest post. Translated from the French by Tim Gupwell
The G20 in Los Cabos seemed like a preparatory meeting for the Summit of the Heads of State and European Governments! This seems to highlight the fact that they no longer know what to do, and are running round like headless chicken.
The same…
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THE LOSS OF CONFIDENCE IN SPANISH DEBT: LIVE
In my article this morning ‘The Greeks have made the right choice’ I indicated that:
…the 10 year rate for Spanish bonds was 6.82% at opening time this morning and now stands at 7.13%. (10.25 AM).
The dramatic progression has continued: it is 2.40 PM and the rate is now at 7.22%
The correct…
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A BIG BANG, OR NOTHING , by François Leclerc
Guest post. Translated from the French by Tim Gupwell
With the G20 meeting being held in Mexico at the start of the week, our perspective will find itself altered, falsely accustomed as we are to only seeing the debt crisis from a European angle. On the 18th and 19th June, the greats of…
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STEPS TOO STEEP TO CLIMB, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
François Hollande is on the offensive and Angela Merkel firmly on the defensive, with both setting their sights on a compromise in the summit at the end of June (a compromise which remains inconceivable for the moment). How is it viewed by Paris, with…
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AND NOW?
14 juin 2012 par Paul Jorion
And now? What are we going to do? Now that Spain has lost access to capital markets for its debt?
True, the downgrading yesterday evening of Spain’s rating by three notches by Moody’s, from an A3 to Baa3 has not helped…
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NOW THE CHAINS ARE GIVING WAY, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
The chorus of voices is becoming increasingly strident and events are moving very fast: the now inevitable Spanish request to benefit from a rescue package; plus the impending recognition of the failure of the second Greek plan, followed by the negotiation of a third…