Tag Archives: transparency in finance

The contagion risk of a later Grexit will only get worse

There is no viable substitute for dealing with the present Grexit pain here and now. Because things will only get worse as time goes by Continue reading

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How much money has actually flowed from Germany to Greece in the spirit of post-war reconciliation?

The latest Greek reparation claims show that countries such as Greece will never let Germany off the hook for its abominable past, no matter how much money German taxpayers are willing to spend on reparation. Continue reading

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The End of Sovereign Bonds without Collective Action Clauses

What are the consequences of a US Court ruling that favors the rights of minority bond holders over the imposition of majority based debt restructuring plan? Continue reading

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The Psychology of an Erupting Massive Fear

Professor Kotlikoff’s analysis of the systemic risk which the 207 trillion US$ public debt is posing to the US bond market is correct. We are no sure, however, whether the danger of that bond market flipping is as imminent as Mr. Kotlikoff has us believe. Continue reading

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The Blind Eye of Mainstream Financial Media

The reaction of financial media to The Wolf of Wall Street shows that their ideological support for free markets is so religious that it would infringe on their piety towards the money market establishment to look at all things therein as they are. Continue reading

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Another proof that regulation alone cannot produce sound financial markets

The US Security and Exchange Commission has decided to drop mortgage crises-related charges against several big financial institutions. Do we need more proof that regulation alone cannot safeguard the soundness of financial markets? Continue reading

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Poor Bank Examiners!

The new Volcker rule bans proprietary trading by big banks. But considerable systemic risk challenges remain even after the new Volcker rule has been adopted Continue reading

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Good corporate governance cannot be codified

The most eminent moral philosophers never tried to lay down multi-page manuals of good conduct. Instead they opted for general orientations only. The idea to codify and standardize the notion of good corporate governance is hence mistaken. Continue reading

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The reasonable thing may be to eventually break them up

Big banks may simply be too big and unwieldy that anyone could hope to manage them adequately. Continue reading

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An amazing inadequacy in the architecture of financial markets

The Bank of England was quite aware of the flaws that go into the Libor-rate fixing process but didn’t deem them relevant enough to go front-page with their scepticism towards that supposedly all important indicator. Continue reading

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