Former IMF Deputy Director - Greek Exit Coming

Desmond Lachman former IMF Deputy Director talks on Bloomberg 23/07/12 about how Greece could exit Euro in 2 months time after USA elections. Very timely eh. It's looking like Greece isn't making the grade and it's in a deflationary spiral and losses must be cut. Germany feels as though loss of Greece is no great shakes.....However this could be Europes Lehman moment! Germans quite rightly don't want to bail out Greece again, especially as Spain looks like it'll be playing the violin and dancing for cash soon.

Response to: Corporate culture - Lofty aspirations

Culture must change with politicians, regulators and central banks first. Osbournes recent allowance of currency derivatives within the ring fence is a significant negative issue for banking safety. As most know, currency trading dwarfs stock trading, hence the magnitude of effect on derivatives potential losses must be bigger than with stocks? Either way it still allows gambling on the back of savers money, NOT acceptable. In addition certain central banks fail to rail in bubbles (BOE) is one of these, they avoid hitting 2% inflation as the average.....a serious cultural problem and one I believe to prop up their own personal investments and pensions, NOT acceptable. Regulators in the USA dumped the Glass Steagall act which gave significant safety to banking and controlled the "culture". Many other regulations are also good "Volker rule", etc. However regulators bow to politicians desires, ditto banks, this is part of what I call the MAFIA culture which exists, NOT acceptable. Good regulation can fix the problem, but if regulations are broken Osbourne style, we will continue to have serious bubble problems as the casino moves to the loopholes. I believe failure to change will create a public backlash, these things toppled Rome.

FT Article: Corporate culture - Lofty aspirations

Response To: Bank pumps £50bn into stalled economy

@innovate, the money goes to the banks indirectly by pumping gilts which banks own. Banks leverage the increase asset or sell the asset at a profit. However the quick indirect effect to this is OIL goes UP, and consumers SPEND LESS. Considering the UK service sector is 70% of GDP, ditto many other G20's, QE does not resolve the problem, it just keeps the 1% stocked with caviar. Welcome to the OIL creation of n(times)# DIP phenomenon.....this will not end until QE stops, QE is a mechanism to fund governments who refuse to balance budgets. The independence of BOE does not exist as the current slow down is natural for the time of year, as I've stated previously. King refuses to allow the Magic 2% to be hit as this would cure unemployment (see Germany for how to create & power a country on low inflation). I'm afraid whilst King & Co are in power of the central bank, they will not manage the economy successfully as demonstrated over the past decade & 2% target is never hit as the average.

FT article: Bank pumps £50bn into stalled economy

Response To: Diamond hits back over Libor

Any enquiry driven by politicians will not be seen as honest, for one the BOE is in the back pocket of politicians irrespective of the so called independence and for two. Who's to say the Con/Lib politicians aren't as corrupt as the property flipping / expense claim fiddling / I've erradicated Boom Bust (bubble blowing), cocktail party nudge nudge - wink wink "LLoyds bank purchase of Halifax" > Labour party. In fact the Cons have already proven they'll sell a bad egg as a golden egg as proven by the currency derivatives within the ring fence. Too long have politicians been wrapping banks up in cotton wool. Oh and for the "I'll hit 2% inflation target" Keynesian King, this is the final nail for a fast track BOE board shake up. What No Regulation....HA! The ones we've got are clearly bent at will. What a deceitful Mafia world we live in. They wouldn't have had to break the rules if they hit 2%, hence the reason King must go, utter failure and dishonest. So should breaking regulation have direct personal financial & criminal punishment? Is the BOE manipulating rates themselves to prop up their own interests in say Inflation Protected Gilt investments? It appears to me such a investigation needs to go deeper than a political cover up. Where's the SFO in this, are they turning a blind eye to this?

FT Article: Diamond hits back over Libor