Schlagwörter: Zerohedge

Das Problem der Eurozone: Staaten geben zu viel aus

The idea that governments can’t lower taxes because there is a deficit, but are free to raise all expenses even if there is a deficit can be found in many political manifestos these days. Central planners always see the economic challenges as a problem of demand, and as such cringe at the idea of prudent investment and saving. When GDP growth, gross capital formation, and consumption are lower than what Keynesians would want, they always blame the alleged problem on “too much saving.” This is a ridiculous premise based on the perception that economic cycles and excess capacity do not matter and if companies and citizens don’t spend as much as the government wants, then the public sector should spend a lot more. mehr hier

Wem gehören eigentlich die Notenbanken?

More than three years ago, Fed watchers were stunned when none other than Ben Bernanke’s former special advisor, Andrew Levin, said that “a lot of people would be stunned to know” the extent to which the Federal Reserve is privately owned, stating next that the Fed “should be a fully public institution just like every other central bank.” But is that true? Are all other central banks “fully public”? For the answer we go to a recent post from The BOE’s Banker Underground blog which looks at the question of who really owns central banks. Here is what it found. weiter hier

Warum die Jungen immer wieder auf “Sozialismus” reinfallen

Robert Lawson and Benjamin Powell are well-known free market economists, and they do not look with favor on a disturbing trend among American young people. “In the spring of 2016,” they tell us, “a Harvard survey found that a third of eighteen-to twenty-nine year olds supported socialism. Another survey, from the Victims of Communism Memorial Foundation, reported that millennials supported socialism Weiterlesen

Trotz Brexit: Keine Flucht der Finanzindustrie aus London

It is now well over three years since the United Kingdom voted, by a narrow but significant margin, to leave the European Union. Yet we still have no idea what kind of economic relationship the UK will have with the 27 countries it leaves behind. (Some of the debate in London recalls in its insularity the apocryphal 1930s headline: “Fog in Channel: Continent Cut Off.”) Insofar as one can hazard a guess, the most likely outcome seems to be Weiterlesen

Zerstörerische Negativ-Zinsen

“…Now, with both the departing and next leadership of the ECB advocating for negative interest rates, we should fear for the future of Europe. The banking sector of Europe is already weak, but likely to get weaker due to the approaching recession. European economic turmoil will likely be exacerbated by significant numbers of zombie companies unable to cope with the recession, and the malign incentives associated with negative interest rate structures. All this, because central banks, and especially the ECB, are unable to admit that their monetary policy experiment has failed. They have become a massive liability for the global economy. If central bankers cannot admit their failures, and “face the music”, it’s time for them to go.” mehr hier

Wie 1931: Repo-Calypse Now?

Last week’s failure in the US repo market might have had something to do with Deutsche Bank’s disposal of its prime brokerage to BNP, bringing an unwelcome spotlight to the troubled bank and other foreign banks with prime brokerages in America. There are also worrying similarities between Germany’s Deutsche Bank today and Austria’s Credit-Anstalt in 1931, only the scale is far larger and additionally includes derivatives with a gross value of $50 trillion. mehr hier

Auf nach Hongkong (für 9 Dollar die Nacht)

Hong Kong was until very recently the world’s most expensive housing market, featuring sky-high rents and cramped apartments as small as 100 square feet. But thanks to the pro-democracy protests that have disrupted the city-state’s economy and ushered in a new wave of political uncertainty and chaos, many of Hong Kong’s most critical industries have seen serious disruptions, especially tourism. mehr hier

Warum den meisten Wählern die Staatschulden gleichgültig sind

The population at large has come to believe it can get something for nothing – including free food, free drugs, free retirement, and free money – via the ‘power of the purse’.  People believe the government can spend without limits and indefinitely kick the debt can down the road. They believe there will be no consequences for this complete failure of discretion. weiter hier