On “Doom-Loops”, Insufficient Capital, Camels, and Utilitarianism: Market Suasion or Delusion?
EXCLUSIVE: Mario Draghi trains to run with the Euro
by Dr. John E. Charalambakis (October 24, 2013)
In a interview on CNBC Mario Draghi (the head of the European Central Bank, ECB) told us yesterday that he is concerned about capital insufficiencies, balance sheet holes, and backstops related to the EU banks. He added that there is a need to “dispel the fog” regarding eurozone banks’ balance sheets, while he added that somehow the “doom-loop” between banks and their sovereigns (where eventually the banks finance their sovereigns’ deficits) need to break. For a moment I thought …
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