Sunday, June 26, 2016

Central Banks Are Losing Control
"When the world worries about Europe’s financial structure and economic prospects, fears can quickly spread globally. I find myself worrying more about China. U.S. markets have remained resilient. On the one hand, our markets win by default. On the other, best I can tell there is no market in the world that remains so oblivious to a bevy of unfolding financial, market, economic and geopolitical risks. Central banks are losing control and I fear 'contemporary finance' is again in the crosshairs."
- Doug Noland
LINK HERE to the essay

1 comment:

Anonymous said...

BRICS Eye a New Rating Company to Reduce Established Firms’ Grip

The BRICS nations are looking to set up a new credit-rating company in an effort to break the dominance of the big three developed-nation firms.

Seeking to lower borrowing costs they say are excessively high thanks to the assessments of S&P Global Ratings, Fitch Ratings and Moody’s Investors Service, the group including Brazil, Russia, India, China and South Africa aims to create a competitor with a different fee structure.
The creation of a ratings company that doesn’t rely on revenue from clients who want their debt assessed “is actively under discussion," Yaduvendra Mathur, chairman and managing director of the Export-Import Bank of India, said by phone on June 16. The government-backed lender is part of a working group studying the feasibility of a new credit-assessment company before the next BRICS summit due in October.

The biggest hurdle for a BRICS credit-assessment company would be convincing U.S. and European investors that the ratings are assigned without government pressure. Critics of S&P, Fitch and Moody’s say they are beholden to the companies they rate because their revenue comes from these clients.
‘Healthy Competition’