The euro zone tyranny should turn into a federal democracy or will necessarily collapse

Posted on 25. Mar, 2013 by Jean Jacques Ohana in Weekly Focus

The Cyprus crisis is interesting, not only for its specificities but as a reflection of general Eurozone woes.

Cyprus banks collected deposits, including abundant money laundering from Russia and Europe. They promised high returns to depositors and took inappropriate risks to meet their promises. Cyprus is also a place where money transits from Russian or European [...]

Throw out the Eurozone crisis by the financial door, it will come back by the political window

Posted on 18. Mar, 2013 by Jean Jacques Ohana in Weekly Focus

Three years after the outbreak of the Eurozone crisis, we know now with certainty that this crisis is not whatsoever a sovereign debt crisis. OECD countries which issue debt in their own currency have no problem to fund their debts. UK, US, Japan, Switzerland, Sweden, Norway, Australia all have different solvency and external balance features. [...]

An equities bubble is swelling now: drawing lessons from past episodes

Posted on 11. Mar, 2013 by Jean Jacques Ohana in Weekly Focus

Global Equities markets are evolving in bubble as showed in figure 1. Riskelia’s bubble indicator measures the regularity of price dynamics over various time frames. An excessive degree of monotonicity in price dynamics characterizes mimetic behavior among market participants who will simultaneously sell their accumulated positions when complacency is called into question by adverse fundamentals. [...]

Deflation by a coordinated fiscal retrenchment

Posted on 04. Mar, 2013 by Jean Jacques Ohana in Weekly Focus

Italian massively voted against the current Eurozone doctrine as Beppe Grillo and Berlusconi who both supported anti-austerity programs gathered more than 55% electors. As usual, Italian voters have been despised by the Eurozone technocrats and the German policy makers, in accordance with the typical denial which prevails in Eurozone policy. For instance, Mr. Steinbrück, the [...]