G20, which gives an enthusiasm to markets in crisis and to restoring confidence! It pulls the bag! And all thanks to the G 20 ... or maybe not ... But can a G 20 as one of these days be considered revolutionary?
And then ... what the FASB has decided on the mark to market and toxic securities, how can you comment? As I said in recent days, is therefore absolutely real. The stock market today is not consistent. The stock market today is emotions, feelings, fears and enthusiasms. And as I said today that client is symptomatic. The stock market is moving on these issues, and if you prefer news on expectations and confidence that they can give. Because the point today is this: lacking confidence. And it is doing its utmost to revive the market, traders and investors the confidence now missing. Lacking confidence? Shortage of investment in financial markets. But try to give confidence and really get it ... well ... is not an easy thing. The G20 which closed yesterday (mythical remain our premier with his "... Mr. Obama ... Mr. Obama ...") has in itself the sensational, at least to read the newspapers. There is talk everywhere of a revolutionary meeting. I will not go into details of the meeting of the G 20, I believe that on internet you can find anywhere the key points of that historic meeting in London. This is the official site of the G-20.
The key decisions of the Summit
What are the key points upon which this meeting revolutionary?
1 - hard line on tax havens
2 - The IMF will have 1100 billion to support countries in economic difficulty
3 - the FSF (Financial Stability Forum) becomes FSB, or the Financial Stability Board. The jump is qualitative and quantitative, more commitments, more responsibility, more power (see the roofs on the salaries of managers)
4 - Regulation of financial markets: it will seek by 2009 to create uniformity in the assessment criteria of banks, plus increased vigilance on hedge funds and more control over operations in conflict of interest.
Well ... What next?
And then just say, but other things less important to me. Personally, however, something wrong with .... I will also be a great spaccap *** e, but I do not see clearly. First, the fourth point. E 'una presa in giro, in the sense that it says everything and nothing is said. A true market regulation there was. How to avoid a new derivatives bubble? How do you monitor the financial leverage created by the banks? How do you monitor the securitization and subsequent modification, with CDO, ABS & Co? How to avoid in future the emergence of some new financial alchemy that is then run "out of control with tragic losses for the whole world? On these issues, does not seem to have seen big decisions. And the reason is simple. E 'un tema scottantissimo, where it is difficult to find agreement and where it is difficult to create a framework for analysis and monitoring.
An avalanche of money
What is certainly worthy of note is the amount of money available. Question: who pulls off the nice figure this? Well ... is not that we were then so many roads ... The only solution is to continue to do what is already done generously. Or print money. Then, for charity, a share may also arise from funding received from the IMF by member countries ... which will then unstitched the money. And in the case of the USA, we already know that money will always be very fresh (in press).
Conclusions
A personal view. The G20 is designed on all sides as a revolutionary event. I do not see things this way then extraordinarily innovative. So many words (as always), even financial commitments (in line with monetary policy and economic integration of big global players) but the REAL news, especially regarding the rules, well ... I saw very little. Our Berlusconi said that the highlight will be the G8 this summer to Magdalene. I bet I already now. Ball in the center and everything as before ... And in the meantime, the FASB in the U.S. ... And while the big world get together in London and theoretically close (or trying to quit) the mesh of creative finance, there is someone who cheerfully ... does the opposite. And that "someone" is the REAL guilty of the upside of the stock exchange yesterday. the FASB has made a gift to U.S. banks. The Financial Accounting Standards Board has approved a plan to loosen the rules of the mark-to-market, giving more scope for the assessment in the budget of the so-called "toxic securities". Some operators had a move due, to align its accounting standards with U.S. queulli European IAS regulation. So the U.S. banks will be more flexible for the evaluation of the toxic securities and the same may also be less severe in case of potential write-downs. It 'been a way to say ...
"And the scam continues ..."
Luckily it was seeking to put rigid poles. But you ... you continue to look around ... many plucking chickens for the poor are savers. And that, dear readers, is one more reason not to trust (in my opinion, it is clear!) Of the rise of stock indices, conditioned by a trust (go back to square one) that is not deserved. STAY TUNED!
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