ECB chief warns on ‘financial gambling’

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ASusilovic

Jean-Claude Trichet, European Central Bank president, told banks on Thursday to return to their “traditional role of providing a service to the real economy”, accusing them of having focused too much on “unfettered speculation and financial gambling”.

His strongly worded criticism, at a banking conference in Frankfurt, highlighted European policymakers’ fears that the recovery of the financial market is encouraging bankers worldwide to believe life can return to how it was before the crisis – risking a popular backlash.

http://www.ft.com/cms/s/aeef64f2-b9...html&_i_referer=http://www.ft.com/home/europe
 
Quote from ASusilovic:
Jean-Claude Trichet.....highlighted European policymakers’ fears that the recovery of the financial market is encouraging bankers worldwide to believe life can return to how it was before the crisis.....
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Are European bankers acting "independently" or are they imitating American bankers? :cool:
 
Quote from nazzdack:

Are European bankers acting "independently" or are they imitating American bankers? :cool:
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This question should be answered by correlation observation between ES and FDAX, FTSE, CAC, MIBTEL, Eurostoxx etc. No need to comment further, or ?
 
Quote from ASusilovic:
.....correlation observation between ES and FDAX, FTSE, CAC, MIBTEL, Eurostoxx etc.....
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Excessive correlation leads to excessive collapse. It's the Summer of 2007 all over again! :cool:
 
Quote from nazzdack:

Excessive correlation leads to excessive collapse. It's the Summer of 2007 all over again! :cool:
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I got the strange feeling there will occur another "Jerome Kerviel" case...in short time....
 
What was the actual catalyst that caused the downhill slide after the summer of 2007? I mean, what was the ONE event that triggered it? Does anyone remember?
 
Quote from Ivanovich:

What was the actual catalyst that caused the downhill slide after the summer of 2007? I mean, what was the ONE event that triggered it? Does anyone remember?
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Fed began to by MBS (mortgage-backed securities) because smelled something critical on the credit mtks...
 
Quote from ASusilovic:

I got the strange feeling there will occur another "Jerome Kerviel" case...in short time....
More...


jerome was holding 5Mil lots long on FDAX but we at the backoffice of SocGen didnt notice it.

we were so busy providing a service to the real economy...

LMAO
 
Quote from Ivanovich:

What was the actual catalyst that caused the downhill slide after the summer of 2007? I mean, what was the ONE event that triggered it? Does anyone remember?
More...
Some things from the top of my head

1. Two Bear Stearns Hedge Funds need capital injections, then blow up (June)
2. Margan Stanley "Full House" sell signal
3. Minor bond sell off in Q1 and Q2 2007 with yields peaking around June 2007.
4. Homebuilder Index breaking the summer 2006 lows in July 2007.
 
Mak, those are the fire examples. I'm looking for the smoke. Number 4 might be smoke...but the others are effect, not cause. Bernard might have it, but I'm not sure.

Just thinking about what could be the catalyst this time. It only takes one thing. We all know that in a house of cards, one card is all that need fall. any thoughts/ideas/bets on what card it will be?
 
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