Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘Bailout’

Europe’s Hamilton Moment

Posted by hkarner - 28. Juli 2017

Essential for the understanding of „no-bail-out“. (hfk)

Date: 27-07-2017
Source: Foreign Affairs By Pierpaolo Barbieri and Shahin Vallée

A New Kind of Federalism for the Continent

Until recently, and with barely concealed anticipation in the Anglo-American press, it was fashionable to speculate about the imminent collapse of the euro. The idea of an impending implosion is not new; it has been floating around ever since the continent moved toward a single currency. It grew more common during Europe’s debt crisis; in 2011, for instance, analysts routinely speculated about whether Greece or Italy would suddenly be forced out of the eurozone. “Grexit” and other such departures failed to materialize, yet the idea of impending demise persisted. During the Brexit referendum campaign, talk of it reached fever pitch, especially once the result became clear. As the British prime minister improvised an exit, morning newspapers far and wide speculated about “Nexit” and “Frexit.”

History, however, moved in a different direction. In fact, ever since Brexit and the election of Donald Trump as U.S. president, a reverse domino effect has guided European politics. From small countries such as Austria and the Netherlands to behemoths such as France and Germany, anti-European populism has not translated into governments eager to follow the United Kingdom out of the EU or Trump into isolationism. On the contrary. Especially after the landmark election of Emmanuel Macron in France, a newfound enthusiasm for reform has dawned in European capitals. Den Rest des Beitrags lesen »

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Hans-Werner Sinn: „Wir müssen den Euro jetzt neu verhandeln“

Posted by hkarner - 6. Februar 2017

25 Jahre nach der Unterzeichnung der Verträge von Maastricht brauche die Eurozone dringend einen Neustart, sagt der deutsche Ökonom Hans-Werner Sinn. Sonst drohe eine Haftungsunion – und neue Spannungen in Europa.

Von Nikolaus Jilch, Presse

Die Presse: Sind die Maastricht-Kriterien heute mausetot?

Sinn cc1Hans-Werner Sinn: Ja. Sie wurden auch schon beim Eintritt in die Währungsunion verletzt. Das waren ja ohnehin nur Eintrittskriterien. Das wichtigste Kriterium war die Verschuldungsgrenze von 60 Prozent des Sozialprodukts. Italien und Belgien hatten damals schon 120 Prozent und durften trotzdem mitmachen. Die anderen Kriterien wurden nachher beschlossen – aber auch nicht respektiert. Der Stabilitätspakt, der eine Defizit-Obergrenze von drei Prozent vorgibt, wurde 165 mal überschritten, davon 112 strafbar. Strafen gab es jedoch nie. Auch der gehärtete Fiskalpakt aus dem Jahr 2012, der von Deutschland als Gegenleistung für den Rettungsfonds ESM gefordert wurde und eine laufende Senkung der Schuldenquoten vorsieht, wurde von fast allen Ländern wiederholt verletzt.

Was ist schief gelaufen?

Der größte Fehler war, dass die No-Bail-Out-Klausel, nach der die Gläubiger von Pleitestaaten nicht rausgehaut werden sollen, verletzt wurde. Die EU hat es versäumt eine Insolvenzordnung für Staaten zu etablieren. So hatten die Investoren die Erwartung, dass man sie im Krisenfalle heraushauen würde, und es floss viel zu viel Geld nach Südeuropa. Mit der Folge, dass dort inflationäre Kreditblasen entstanden sind. Das hat die Länder überteuert und ihre Wettbewerbsfähigkeit zerstört. Den Rest des Beitrags lesen »

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Europe’s Secret Bailout

Posted by hkarner - 28. November 2016

 

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The No-Bailout Principle

Posted by hkarner - 15. August 2016

Date: 14-08-2016
Source: The Wall Street Journal

A euro in a Greek bank is clearly worth less than a euro in a German bank. The Greek bank and the Greek government are simply more likely to go belly-up.

Back in February 2010, with the Greek government’s borrowing costs climbing to new heights, Nobel Prize-winning economist Joseph Stiglitz—then an adviser to the Greek prime minister, George Papandreou—called for eurozone authorities to intervene in markets and “teach the speculators a lesson.” Greece had no need of a bailout, he said, no need of the International Monetary Fund (IMF). “There is clearly no risk of a default.”

Three months later, Greece accepted its first bailout package, amounting to $120 billion. To date it has received financial assistance, in the form of loans and write-offs for private-sector bondholders, amounting to $450 billion.

euro stiglitz eTHE EUROeuro stiglitz d
By Joseph Stiglitz
Norton, 416 pages, $28.95

Reading Mr. Stiglitz’s “The Euro: How a Common Currency Threatens the Future of Europe,” one gets no sense that he ever considered the Greek tragedy anything other than inevitable. “Successive governments,” he writes, “had run unconscionable deficits.” And the eurozone, which Greece joined in 2001, was an unforgiving home for such a spendthrift. It was built on the idea of each state for itself in fiscal affairs; there would be no bailouts. The belief was that European governments would run their economies so as to avoid any risk of the financial markets cutting them off. And just to make extra-sure, legally binding deficit limits were imposed.

But even fiscally prudent countries like Ireland and Spain blew through these limits when property busts wrecked their banks and sent unemployment soaring after 2008. Mr. Stiglitz is clear on who and what are at fault for the suffering that followed: Germany and its euro, created in the Prussian image of austere and merciless self-discipline. Den Rest des Beitrags lesen »

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Dealing with public debt in the Eurozone

Posted by hkarner - 3. August 2016

Charles Wyplosz, 01 August 2016, voxeu

Professor of International Economics, Graduate Institute, Geneva; Director, International Centre for Money and Banking Studies; CEPR Research Fellow

The German Council of Economic Advisers has mooted an interesting proposal to deal with excessive public debts in the Eurozone (Andritzky et al. 2016a, 2016b). This is a major remaining gap in the Eurozone, which governments would prefer to keep ignoring. Although the authors should be commended for bringing it up, their proposal suffers from some inherent weaknesses. Den Rest des Beitrags lesen »

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Draghi setzt die EU unter Druck und fordert Banken-Rettung

Posted by hkarner - 22. Juli 2016

Schweinerei des ehemaligen Goldman-Sachs Mitarbeiters. (hfk)

Deutsche Wirtschafts Nachrichten  | 

EZB-Chef Mario Draghi will eine Banken-Rettung mit Steuergeldern durch die Hintertür. Der Trick: Die Steuerzahler sollen die faulen Kredite übernehmen. Damit soll die EU motiviert werden, einer Umgehung ihrer eigenen Regeln zuzustimmen. Der Weg ist völlig verkehrt, weil er nicht den Volkswirtschaften nützt. Es ist neues Business für die Investmentbanken – auf Kosten der Steuerzahler.

Draghi cc

Spekulationen auf eine baldige Rettung angeschlagener Finanzinstitute durch die EZB haben die Kurse italienischer Banken am Donnerstag angetrieben. Der italienische Branchenindex stieg um 1,4 Prozent. Unicredit-Aktien gewannen 3,3 Prozent, Titel der angeschlagenen Banca Monte die Paschi di Siena lagen rund 2,5 Prozent im Plus und Papieren von BP Emilia stiegen um 3,4 Prozent.

EZB-Chef Mario Draghi sagte im Rahmen der Pressekonferenz nach der Ratssitzung in Frankfurt, die Probleme der schwachen Ertragskraft von Banken müssten angegangen werden. Damit ist in erster Linie Italien gemeint, dessen Banken rund ein Drittel aller faulen Kredite der Eurozone in ihren Büchern halten. Ein öffentliches Auffangnetz für diese faulen Kredite sei bei besonderen Umständen eine Möglichkeit, um die Banken zu rekapitalisieren. Es müsse allerdings mit der EU-Kommission abgestimmt werden.

„Ein öffentliches Auffangnetz ist eine Maßnahme, die sehr nützlich wäre. Wir wollen einen panischen Ausverkauf vermeiden“, sagte Draghi der FT zufolge. Überhaupt bestehe das Hauptproblem europäischer Banken in der schwachen Profitabilität, nicht in der Zahlungsfähigkeit, sagte Draghi in Frankfurt. Den Rest des Beitrags lesen »

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A Mechanism-Proposal-for- Eurozone-Sovereign-Debt-Restructuring

Posted by hkarner - 22. Juli 2016

Creditor participation clauses: Making orderly sovereign debt restructuring feasible in the Eurozone

Jochen Andritzky, Lars P Feld, Christoph M Schmidt, Isabel Schnabel, Volker Wieland 21 July 2016, voxeu

Secretary General, German Council of Economic Experts

Director, Walter Eucken Institute; and Professor of Economic Policy, University of Freiburg

President, RWI Essen and CEPR Research Fellow

Professor of Financial Economics, University of Bonn; Member of the German Council of Economic Experts; CEPR Research Fellow

Managing Director of the Institute for Monetary and Financial Stability (IMFS) and holder of the Endowed Chair of Monetary Economics, Goethe University Frankfur

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The ECB’s Illusory Independence

Posted by hkarner - 2. Juni 2016

Photo of Yanis Varoufakis

Yanis Varoufakis

Yanis Varoufakis, a former finance minister of Greece, is Professor of Economics at the University of Athens.

JUN 1, 2016, Project Syndicate

ATHENS – A commitment to the independence of central banks is a vital part of the creed that “serious” policymakers are expected to uphold (privatization, labor-market “flexibility,” and so on). But what are central banks meant to be independent of? The answer seems obvious: governments.

In this sense, the European Central Bank is the quintessentially independent central bank: No single government stands behind it, and it is expressly prohibited from standing behind any of the national governments whose central bank it is. And yet the ECB is the least independent central bank in the developed world.

The key difficulty is the ECB’s “no bailout” clause – the ban on aiding an insolvent member-state government. Because commercial banks are an essential source of funding for member governments, the ECB is forced to refuse liquidity to banks domiciled in insolvent members. Thus, the ECB is founded on rules that prevent it from serving as lender of last resort. Den Rest des Beitrags lesen »

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What is to be Done with the Banks? Radical Proposals for Radical Changes

Posted by hkarner - 23. April 2016

Dank an H.F.! Very essential reading. Slightly more comprehensive and intelligent than Ch. Felber (hfk)
Immediate measures for moving towards socialisation
by John Weeks , Eric Toussaint , Stavros Tombazos , Pritam Singh , Benjamin Selwyn , Alfredo Saad Filho , Patrick Saurin , Sabri Öncü , Susan Pashkoff , Ozlem Onaran , Thomas Marois , Philippe Marlière , Francisco Louça , Stathis Kouvelakis , Andy Kilmister , Michel Husson , Michael Hudson , David Harvey , Pete Green , Giorgos Galanis , Alan Freeman , Gilbert Achar , Costas Lapavitsas

13 April 2016

Nine years after the outbreak of the financial crisis that continues to produce damaging social effects through the austerity policies imposed on victim populations, it’s time to take another look at the commitments that were made at that time by bankers, financiers, politicians and regulatory bodies. Those four players have failed fundamentally in the promises they made in the wake of the crisis – to moralise the banking system, separate commercial banks from investment banks, end exorbitant salaries and bonuses, and finally finance the real economy. We didn’t believe those promises at the time, and for good reason. Instead of a moralising of the banking system, all we’ve had is a long list of misappropriations that have been brought to light by a series of bank failures, beginning with that of Lehman Brothers in 15 September, 2008. Den Rest des Beitrags lesen »

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Fiscal Federalism: The Eurozone Is Not the USA

Posted by hkarner - 26. Januar 2016

By and on January 25, 2016  RGE EconoMonitor

Moral Hazard and Fiscal Discipline

A fundamental problem for fiscal federations is that higher level governments must find a way to avoid the moral hazard problem that results from accepting responsibility for debts of subordinate governments. This problem is painfully obvious in the case of EMU members who want to limit their exposure Greek debt. A cynic once described a fiscal federation as one in which “you pay my bills”. Fiscal discipline can be achieved either by the use of hierarchical rules or by the use of financial markets. Higher level governments can limit their obligations by using hierarchical rules that limit spending, taxation, and borrowing by lower level governments (hierarchy). Alternatively they can refrain from imposing intrusive rules on subordinate governments and promising to not bail out subordinates if they cannot pay their debts (markets). Den Rest des Beitrags lesen »

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