Global Economic Intersection
Advertisement
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
Global Economic Intersection
No Result
View All Result

Stiglitz: ECB is the Agent of a Few Powerful Banks

admin by admin
February 15, 2012
in Uncategorized
0
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

by Guest Author, ECB Watch

Columbia University professor and Nobel Laureate Joseph Stiglitz (pictured) has an interesting article at Project Syndicate, Capturing the ECB, and here’s an excerpt:

stiglitzSMALLBy insisting on its voluntariness [of a Greek default …] the ECB may be putting the interests of the few banks that have written credit-default swaps before those of Greece, Europe’s taxpayers, and creditors who acted prudently and bought insurance.  The final oddity of the ECB’s stance concerns democratic governance.  Deciding whether a credit event has occurred is left to a secret committee of the International Swaps and Derivatives Association, an industry group that has a vested interest in the outcome.

It’s never too late to try to read into Mr Draghi’s mind.  After all, he will be around for eight years.  But Stiglitz’ deductions to arrive at the above conjecture aren’t even necessary.  It was made known by the ECB president himself in the nomination hearing held in June 2011.Unfortunately, the previous link to the  full transcript of the hearing is dead and a Google search proved unsuccessful1. But we have indirect evidence.  The NY Times noted his opposition to a Greek restructuring at the time and MEP Pascal Canfin reported in an interview (at around 2:00) that this was to protect American banks that sold insurance against a default; a position that the MEP judged inadmissible2. It only stands to reason, then, that, since restructuring can no longer be avoided, the voluntary option is now Draghi’s favorite.

Jean-Claude Trichet recently justified the ECB’s position as follows: traders would be encouraged to bet against indebted nations and worsen the crisis. The ban on naked purchases of credit default insurance, in Europe, will be effective November 2012. But if that really was such a problem, an executive order to that effect could be used, until the new law is effective, couldn’t it? J-C Trichet took the bold step in 2011 of vetoing a legal proceeding by Bloomberg vis a vis the EU’s General Court, for the ECB to release details about the 2001 (and, it turns out, 2005) contentious Goldman/Greek currency swap. The alleged reason? Preventing market risk, literally. You’ve guessed it: double standards to the extreme.

Mr Stiglitz ends with this general assessment:

The ECB’s behavior should not be surprising: as we have seen elsewhere, institutions that are not democratically accountable tend to be captured by special interests. That was true before 2008; unfortunately for Europe – and for the global economy – the problem has not been adequately addressed since then.

On democratic accountability, Draghi provided this opinion in a written Q&A with the European parliament, also as part of his nomination:
34. Would you be in favour of a confirmation procedure [as opposed to just a consultation] by the European Parliament (notwithstanding the constitutional issues that such a change would raise)?
The European Parliament has in recent years gained a wide range of far reaching competences […alotta dull comments to avoid getting to the point too quickly…] I therefore do not see the need for changes to the current procedure, considering the outcomes that the procedure has obtained.
Draghi’s mood after the hearing was ecstatic (by the standard of central bankers): This was my first experience of democratic accountability, and it was one of the greatest learning experiences I have ever had. Perhaps that’s because he wasn’t challenged enough.   That should have been the whole point of the exercise (the hearing).  But, at least, we’re glad thatsome are putting two and two together.

Notes

  1. and the ECON Committee’s press office has ignored our requests for documentation in the past, unlike their homologue in the UK, so no need to bother trying again…
  2. The other reservation expressed in the interview was his unconvincing answer to his question about his alleged implication the falsification of Greek debt, a topic coveredhere.

Recent coverage of related issues:

  • Goldman swap shows Greece was Europe’s sub prime nation,  NickDunbar, January 2012
  • Monti says Italy seeks to set good example on swaps transparency,  Bloomberg, February 2012, There are other member states who have notified swaps in their debt reporting in addition to Greece, said the director general of Eurostat.
Previous Post

CoreLogic Reports 830,000 Completed Foreclosures in 2011

Next Post

The Cream Portfolio

Related Posts

Riot Blockchain’s BTC Mining Productivity Lost 28% YOY Amid Record Texas Heat
Business

Riot Blockchain’s BTC Mining Productivity Lost 28% YOY Amid Record Texas Heat

by John Wanguba
August 8, 2022
Musk Challenged Twitter CEO To Public Debate On Bots
Business

Musk Challenged Twitter CEO To Public Debate On Bots

by John Wanguba
August 8, 2022
BlackRock Partners With Coinbase
Business

BlackRock Partners With Coinbase

by John Wanguba
August 7, 2022
Bank Of Thailand To Unleash Retail CBDC Pilot
Economics

Bank Of Thailand To Unleash Retail CBDC Pilot

by John Wanguba
August 6, 2022
Obscure Fintech (AMTD Digital) Reaches $310B Valuation In GameStop-Style Explosive Surge
Business

Obscure Fintech (AMTD Digital) Reaches $310B Valuation In GameStop-Style Explosive Surge

by John Wanguba
August 5, 2022
Next Post

The Cream Portfolio

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins banking banks Binance Bitcoin Bitcoin adoption Bitcoin market Bitcoin mining blockchain BTC business China Coinbase crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum finance funding inflation investment market analysis markets Metaverse mining NFT NFTs nonfungible tokens nonfungible tokens (NFTs) price analysis regulation Russia social media technology Tesla the US Twitter

Archives

  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • August 2010
  • August 2009

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized
Global Economic Intersection

After nearly 11 years of 24/7/365 operation, Global Economic Intersection co-founders Steven Hansen and John Lounsbury are retiring. The new owner, a global media company in London, is in the process of completing the set-up of Global Economic Intersection files in their system and publishing platform. The official website ownership transfer took place on 24 August.

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Recent Posts

  • Riot Blockchain’s BTC Mining Productivity Lost 28% YOY Amid Record Texas Heat
  • Musk Challenged Twitter CEO To Public Debate On Bots
  • BlackRock Partners With Coinbase

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

No Result
View All Result
  • Home
  • Contact Us
  • Bitcoin Robot
    • Bitcoin Profit
    • Bitcoin Code
    • Quantum AI
    • eKrona Cryptocurrency
    • Bitcoin Up
    • Bitcoin Prime
    • Yuan Pay Group
    • Immediate Profit
    • BitIQ
    • Bitcoin Loophole
    • Crypto Boom
    • Bitcoin Era
    • Bitcoin Treasure
    • Bitcoin Lucro
    • Bitcoin System
    • Oil Profit
    • The News Spy
    • British Bitcoin Profit
    • Bitcoin Trader
  • Bitcoin Reddit

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

en English
ar Arabicbg Bulgarianda Danishnl Dutchen Englishfi Finnishfr Frenchde Germanel Greekit Italianja Japaneselv Latvianno Norwegianpl Polishpt Portuguesero Romanianes Spanishsv Swedish