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Would a Bund by any other name smell as sweet?

Tom Spencer

Definitions. Thirdly, European banks are currently focused on building their balance sheets not on lending. While Bunds may still smell sweet, weak financial markets in Europe are a cause for concern. Weak financial markets increase the risk that one or more European banks will fail. Business Strategy.

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Another Definition of Deflation: Antal Fekete Defines Deflation as a "Pathological Slowing in the Velocity of Money"

MishTalk

The simple definition V = GDP/M where V is velocity, M is money supply, and GDP is Gross Domestic Product. I prefer the definition of deflation as a pathological slowing in the velocity of money. However, I disagree with his definition of deflation based on velocity. It''s simply a truism based on Fekete''s definition.

Banking 28
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China Cash Crunch Eases, For How Long? Three Things China Needs to Avoid; When can Beijing Truly move to Market-Determined Interest Rates?

MishTalk

China''s Move to Market-Set Rates Let''s step back to December 8 and look at China Relaxes Grip on Interest Rates China is relaxing its grip on interest rates with the launch of a financial instrument that allows banks to trade deposits with each other at market-determined prices. China’s credit boom is still in full swing.

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ECB Waters Down 2014 Stress Tests Second Time; Yet Another Sham Stress Test

MishTalk

But now ECB president Mario Draghi, says debt that banks hold to maturity will not have to be set at market value or penalized. The ECB will not force European banks to adjust to market value of sovereign debt portfolios that are classified as held to maturity.

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War Between Spain and Germany Erupts Over Next Round of Watered Down Stress Tests; Germany Complains About the "Carry Trade"

MishTalk

Draghiz e: "The test is credible because the ultimate purpose of it is to restore or strengthen private sector confidence in the soundness of the banks, in the quality of their balance sheets" Mish : The test is credible because we say it is. Spanish officials claim it makes no sense to penalize these asset as if they were bad loans.

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Spotlight on European Bank Lending: Capital Impairment to the Forefront

MishTalk

More Questions Any banks fudging the definition of a performing loan? What about mark-to-market valuations of loans and assets on the balance sheets of banks? Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Banking 67
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Can the Fed Really Print Money? What Would Negative Interest Rates Do?

MishTalk

Despite the unprecedented increase in the Federal Reserve’s balance sheet, growth in M2 over the first nine months of this year fell below its average rate of growth over the past 115 years, a time when the growth in the monetary base was stable and quite modest. The answer depends on the definition. So which is it?