Posts Tagged ‘Norges Bank’

Notes From Underground: Song of the Week, “Lies” (The Knickerbockers)

March 17, 2016

Lies, lies, you’re tellin’ me that you’ll be true

Lies lies

That’s all I ever hear from you

Tears, Tears

I shed a million tears for you

Tears tears

And now you’re lovin’ someone new

Someday I am gonna be happy

But I don’t when just now

Lies, lies

A-breakin’ my heart

You think you are such a smart girl

And I’ll believe what you say

But who do you think you are girl?

To lead me on this way, hey!

Lies, lies

This song can be applied to so many policy makers: Draghi, Lagarde, Kuroda and, of course, Yellen. This week has brought interest rate policies from five central banks and the biggest impact was from the Fed as the market believes that the “dot plot” has thickened since the projections for “four is still in the park” has certainly left the rate increases stranded at SECOND. Today, three banks announced policy decisions. The Swiss National Bank left policy unchanged but noted it believed that the global economy was soft and as usual the Swiss franc was overvalued. The SNB reserves the privilege of intervening to weaken the FRANC whenever it deems it appropriate. The recent strength of the EURO and the stability of the EUR/CHF  cross should keep the Swiss quiet but vigilant.

(more…)

Notes From Underground: Hey Germany, NEITHER A BORROWER NOR LENDER BE

December 14, 2011

It is very easy to fall prey to the German view of the European debt crisis: Blame the profligate PIIGS for living beyond their means and borrowing to support a lifestyle based on leisure. There is of course great truth to this but it was the Northern European banks that lent the money in a ready fashion. The GERMAN and DUTCH current account surpluses had to be lent somewhere and with the Chinese and Japanese monopolizing the profligate lifestyles of the Americans, Germany turned to their European comrades. Belonging to the EURO and, thus, ECB zone of finance, Commerzbank, Deutsche Bank, Rabobank and SocGen all felt comfortable buying the AAA debt of Spain and Italy and of course the three little PIGs.

(more…)