The Economist (official group for The Economist newspaper)

The Economist (official group for The Economist newspaper)

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Eduardo G.

Eduardo

Here’s the headline that has jolted global markets over the last few minutes: Just like that, stock futures have erased earlier gains, European stocks are sharply lower and the euro has fallen below $1.28 for the first time...

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  • May 15, 2012
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  • Eduardo G.

    Eduardo

    Eduardo G.

    Empresario en Servicios Profesionales

    The major problem in Europe now, is credibility. If Greece drops out of the euro zone, all other countries will be impacted badly, and you know what? It is very likely to happen.

  • Eduardo G.

    Eduardo

    Eduardo G.

    Empresario en Servicios Profesionales

    Greece has failed to create a governing alliance. The country will go to new elections in June and walking away from the euro seems to be getting closer. On the other hand Merkel and Hollade have met and agreed so far that Greece should stay in the euro-zone. It makes sense, if Greece leaves it will impact negatively on Germany and France and everybody else in the euro-zone.

  • Eduardo G.

    Eduardo

    Eduardo G.

    Empresario en Servicios Profesionales

    Many Banks, specially big ones, do not fulfill their role, they gamble with customer money creating derivatives on mortgages, etc. There's a lot of "fake"money going around.

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    exactly - the recent JPM C losses on the London derivatives market were FDIC backed funds. If this mere 2 to 3 billion tanked the bank, it would have immediately been, by law, the FDIC to settle every depositer. In light of the last 4 years - the hight of hubris.

  • Eduardo G.

    Eduardo

    Eduardo G.

    Empresario en Servicios Profesionales

    As libertarian as I am, Banks must be controlled, because they have gone well beyond their territories. They think they are the Fed! But the money they use, as I said before, is FAKE.

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    Eduardo, in many ways the Banks are the Fed. The Fed is a public and private enterprise with the chairman selected by the president but the board of governors and the regional governors, in part, (Geitner in NY) selected by the banks - it is hybrid organization. I would modify the control of the banks to a definate set of rules of the road - what is the maximum risk tolerance of an investment with depositiers money ? Can we define this currently ? Why would we accept the risk assessment and quality of investment from a rating agency that is paid by the customer (ie Standard & Poors)? What is the limit of an institution that enjoys certain federal (ie public) guarrentees of investment to capital reserve ? These are fundamental issues that actually every family has to address in some way. The merry go round of banker to regulator to advisor and back to banker is on paper and for any sentient being ridiculous. There is an attempt to make everything obscure and opaque and too difficult to understand. It's like going to the car mechanic and he tell you, you need to replace your phenotny rod immediately for only $499.99. Take money completely out of politics and set some basic rules of the road and it will substantially go away.

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