Bags vs. Banks ?
- More Uncertainties in Italy and Greece
The recent developments in Greece and Italy are increasing the uncertainties in the markets that remain very volatile. With limited or no support from the ECBE the situation could worsen opening another crisis worse than the 2008 one.
European politics have reacted too slowly and ineffectively. As the IMF wouldn't have the resources to support this crisis I don't see how a way out could exist without a strong intervention so money printing from the ECBE.
The other alternative is the implementation of all the necessary reforms to reduce national debts and restore investors confidence but these are unlikely to happen fast enough.
In short: The ECBE has to print yesterday !
- Bags vs. Banks ?
Luxury goods has been among the few sectors to outperform in this difficult year. French bag makers Hermes has now a bigger capitalization than Societe Generale and Credit Agricole combined so while I was previously positive on European banks in the short term I am now more cautious on financials at least until the European crisis finds a final resolution. The main difference is that while the business model and liabilities of a luxury bags maker are fairly clear there is not the same level of clarity in financials.
Reader Commentary
at 04:05 pm
The right financial way must be fect,as bags are not banks.too much bags can lead to banks financial economical instability as corruption and insecurity will affect the economy by financial unlawfulness caused by bags which are not institutions to right flow cash for goods and services.bags has to work into and out of banks for booming and suitable cash and demand,supply and service of luxury good flow,that will not lead to cash push,demand pull and structural financial inflations.bags may hike money for insecurity.
Ecbe,should not print higher money duration to allow cash push and structural inflation of that economy.