by John E. Charalambakis | Nov 24, 2011 | Commentaries, Uncategorized
In March 1914, the Federal Reserve Bank (Fed) started its operations in the US. Within fifteen years the depression was taking root in the US. Seventy years later, the European Central Bank (ECB) was starting its operations and in a twist of fate, in about ten years...
by John E. Charalambakis | Nov 18, 2011 | Commentaries, Uncategorized
Almost 1600 years ago the first signs of Rome’s demise appeared in the horizon. Around 411 AD the Visigoths under Alaric’s leadership attacked and ravaged the city. Smoking ruins and destructions was left behind. This was not the first sign that the end of the Western...
by John E. Charalambakis | Nov 11, 2011 | Commentaries, Uncategorized
Since early July we have posted comments about Italy’s shaky position. In late 2009 the ten-year spread of Greek bonds over the German Bunds was approximately 400 bps. Greek ten-year bonds were yielding about 7%, as the graph below shows. Two years later the spread is...
by John E. Charalambakis | Nov 3, 2011 | Commentaries, Uncategorized
As those lines are being drafted, the ECB announced – under its new leadership – a reduction in its interbank lending rate by 25 bps. The EU and the US markets seemed to like it, in the midst of the Greek political and economic developments. It is widely expected that...
by John E. Charalambakis | Oct 28, 2011 | Commentaries, Uncategorized
We have the feeling that we needed a surgery and we got a counseling session. The “landmark” deal announced in the early morning hours (EU time) yesterday, is full of uncertainties and ambiguities. Moreover, it seems that is another band-aid that seems to kick the can...
by John E. Charalambakis | Oct 23, 2011 | Commentaries, Uncategorized
An abnormality (exostosis) has been developing in the markets that involves an a priori assumption that the EU will solve its debt and banking problems. On the surface it seems that this exostosis is benign and can be fixed with the expected enhancement of the EU’s...