Posts Tagged ‘Stark’
The European Central Bank (ECB) has announced the resignation of key ECB official, Jürgen Stark. The Bank said in the announcement: ”Today, Jürgen Stark, Member of the Executive Board and Governing Council of the European Central Bank (ECB), informed President Jean-Claude Trichet that, for personal reasons, he will resign from his position prior to the end of his term [...]
Speculation of Greek restructuring based on false assumption it is insolvent (though apparently his government favors some sort of restructuring…)
Don’t underestimate massive harmful effects for Greece, euro zone from restructuring
Effects far reaching, difficult to calculate
Would prompt more bailouts since domestic banks would be pushed to the brink
Restructuring risks contagion
No compromises in pursuit of price stability
Sees inflation as stable over medium-term
EZ recovery is becoming more or less self-sustaining
Trichet is on the wires as well:
We will always do what is necessary
We are never precommitted
Present interest rates are appropriate
Banks that need to should recapitalize
Data confirms gradual recovery
Does not exclude using EFSF funds for recapitalizing banks, buying [...]
The ECB has been talking exit strategy in recent months but the flare up in sovereign debt woes has them backpedaling a bit.
Case in point: ECB chief economist Stark says the ECB has been withdrawing support measures but that they will keep them in place as long as needed.
With the Irish banks on life support, [...]
EUR/USD is easing after comments from the ECB chief economist to the German parliament, carried by Reuters.
German banks are under capitalized
Germany should make concessions regarding Basel III
US is betting that German banking system won’t be able to stay in current form after Basel III
Fears slight inflation trend in US from Obama’s stimulus program
Ratings agencies some [...]
Slower growth ahead, but growth to continue
Do not expect major problems coming out of stress test
All advanced economies are in difficult situation; must consolidate fiscally
IMF has not caught up with reality–underestimates euro zone recovery
The ECB gab-fest continues with the chief economist weighing in. I love the shot at the IMF…
EUR/USD is at session lows after [...]
ECB board member Juergen Stark on German radio has opined “It is not the case that we have a weak euro at the moment, the purchasing power of the euro is secured and will remain so.” The official added “Our monetary policy has not changed and the measures we decided on May 9 did not [...]
ECB economist Stark is talking rate hikes in the middle of a European sovereign debt crisis. He says the EB will act in a timely manner on rates and that leaving rates too low for too long is dangerous. A touch more hawkish than similar comments yesterday.
Markets are edgy with the Chinese reval talk creating [...]
