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Platinoid
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>There’s a liquidity crunch developing  - Alasdair Macleod - Finance and Eco.
Lack of solvency in both national and commercial banks was one
of the causes of the 'crash.' At some point there had to be some
kind of regulation to de-leverage the banks.

The Euro-Zone member countries witnessed a massive re-nationalization of their balance
sheets, i.e. foreign debts and credits, and a subsequent 'balkanization' of their Euro quotas.
This was viewed by some as a first step in the death of the Euro, and the re-printing of
national currencies.

That also dried up liquidity in Europe, and put enormous pressure on non-bank secondary markets
as borrowers could not readily find national lenders within their own borders.

Europe is far from recovering from their ongoing solvency crisis. - late edit Tx
Europe is far from recovering from their ongoing liquidity crisis.

So now we have a balance of terror between solvency and liquidity.

Governments on all continents are hooked on bond buying and twisting,
like giant institutional addicts. This isn't going to end well.

Much more pain to come.


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Début de l'article :This week an article in Euromoney points out that liquidity in bond markets is drying up. The blame is laid at the door of regulations designed to increase banks' capital relative to their balance sheets. Furthermore, the article informs us, new regulations restricting the gearing on repo transactions are likely to make things worse, not only reducing bond market liquidity further, but also affecting credit markets. The reason this will be so is that in a repurchase agreement a bank supplies cre... Lire la suite
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