Central banks ‘have never been on thinner ice’

Banks are in over their heads in trouble. Central banks are over their heads in trouble as well. The only thing left to bail them all out would be the IMF — which is within the realm of possibility as we enter a harsh downturn.

 

Sentiment at IMF annual meeting sours on Fed, BOJ, ECB

The global financial elite has soured on global central bank policy, believing that it’s now counterproductive, doing more harm than good.

That was the message on the sidelines of the International Monetary Fund’s annual meeting in Washington, where in informal survey of more than 100 bankers found more than 70% saying monetary policy is now part of the problem instead of a solution. Continue reading

Global central banks are running ‘out of ammo’

Please see the source for the video.

 

Central banks are pulling out all the stops to turn around the global economy.

They’re pumping money into their economies, creating negative interest rates and buying billions of dollars in bonds. Yet experts are worried some of these strategies will not be enough to turn around the slump in the world.

“Major central banks have run out of ammo,” says Ed Yardeni, chief investment strategist at Yardeni Research. Continue reading

Greek turmoil set to shake global markets out of complacency as sell-off looms

A Greek exit from the euro is now a “base case” scenario for economists and is set to trigger a flight to safety for nervy investors

Financial markets were braced for their worst period of turmoil since the height of the eurozone crisis three years ago, after Greeks chose to overwhelmingly reject the bail-out terms of their creditors, throwing the country on a collision course with the eurozone.

The prolonged period of uncertainty is expected to roil European equities and see investors flock to safe haven assets such as US and German government bonds.

Continue reading

EL-ERIAN: If the Greek ‘no’ vote wins, prepare for a global stock market sell-off

They’re still counting the votes, but so far the “No” vote has the lead. In other words, “No” the Greek people do not want to accept strict fiscal austerity measures in exchange for desperately needed bailout money.

In a post on Facebook, Allianz’s Mohamed El-Erian offered a brief preview of things to come should the “No” vote win.

“IF this historic “no” win is confirmed, look initially for a general selloff in global equities, along with price pressures on the bonds issued by Greece, other peripheral Eurozone economies and emerging markets,” he wrote. Continue reading