29 mai 2017 3

Free money supply and growth

Rédigé par jp-chevallier dans la rubrique English, Etats-Unis, masse monétaire libre

The relationship between changes in the money supply and growth has been a very important subject for a decade. A concrete example from well-known economic theories allows us to understand them… As soon as the Böhm-Bawerk’s peasant sells his harvest on the market in neighboring town, he buys a plow (to increase his production, productivity [...]

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22 novembre 2013 12

Systemically Important Financial Institutions real leverage

Rédigé par jp-chevallier dans la rubrique Banques, English, Leverage

Like all companies, banks finance their assets by equity and liabilities. Alan Grenspan enacted in the 80’s Tier 1 ratio Rule for the banking system: the amount of capital must be greater than 8% of the total debt, its inverse is the leverage to be less than 12.5. After the financial turmoil he increased this [...]

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26 février 2013 9

Systemically Important Financial Institutions real leverage

Rédigé par jp-chevallier dans la rubrique Banques, English

Like all companies, banks finance their assets by equity and debt. Alan Grenspan enacted in the 80s Tier 1 ratio Rule for the banking system: the amount of capital must be greater than 8% of the total debt, its inverse is the leverage to be less than 12.5. After the financial turmoil he increased this [...]

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3 octobre 2012 15

Free money supply and growth

Rédigé par jp-chevallier dans la rubrique English, masse monétaire libre

Changes in real GDP are inversely proportional to those of the free money supply M2-M1 which is the difference between the change in the monetary aggregate M2-M1 and (minus) real GDP growth (year on year %). In other words, the variations of the free money supply are driving: the increase in free money supply M2-M1 [...]

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14 septembre 2011 2

Two banks in the euro area are in default of payment in dollars

Rédigé par jp-chevallier dans la rubrique English

Today Wednesday, September 14, two banks in the euro area are in default of payment in dollars: they ask $575 million, Click here to read this release on ECB website.

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31 août 2011 1

Banks in the euro zone: no more bets!!

Rédigé par jp-chevallier dans la rubrique Banques Européennes, English, Europe

Many banks in the euro zone have a real leverage at 30 to 50! They cannot withstand the large current financial turmoil. August 18, a bank has even been forced to borrow $500 million to the ECB for a period of seven days to avoid being in default according to the ECB. August 25, at [...]

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28 août 2011 3

ECB: no more bets! More, more…

Rédigé par jp-chevallier dans la rubrique Banques Européennes, English

This Tender Operation-Announcement, Reference Number 11034 means that $5m were provided on morning August 25 from ECB to a German bank otherwise this bank was in default, but not allowed, because, finally, this bank found these $5m some hours later. Document 1: Indeed, to avoid this event, she was able to sell some assets in [...]

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27 août 2011 14

ECB: no more bets! More…

Rédigé par jp-chevallier dans la rubrique Banques Européennes, English

The situation is out of control in the euro zone, as I have been writing it for a while… The interbank market does not work because euro-zone banks managers have lost confidence in other banks. So they keep their cash in US$ rather than lending it to other banks that need it as they would [...]

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25 août 2011 1

Crédit Agricole SA: 2011, Q2

Rédigé par jp-chevallier dans la rubrique English

Crédit Agricole SA, the second of the four Gos French banks, is listed on Euronext Paris. It is part of an unlisted group Crédit Agricole Group, which includes regional and local banks as a financial arrangement. These banks published their accounts, half 2011 available in English … Document 1: On this page, the information in [...]

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21 août 2011 10

€ big banks: Big bang!

Rédigé par jp-chevallier dans la rubrique English

The latest Fed release about balance sheet (H.4.1) shows that it repurchased Treasury securities to $1,647 billion (QE1 and 2, item 1, document 1) financed by $1,701 billion from banks deposits (item 1, document 2), Document 1 (assets): Document 2 (liabilities): David Enrich and Carrick Mollenkamp in The Wall Street Journal tell us that, on [...]

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