Posts tonen met het label requirement. Alle posts tonen
Posts tonen met het label requirement. Alle posts tonen

maandag 25 maart 2013

Bank Reserve Requirements in the Eurozone

Following the crisis in Cyprus of which I talked about here, there has been a question on how much stress the banks can have during a bank run, before their liquidity is at stake.

A typical bank balance sheet looks like this (Figure 1). If the deposits get drained on the right side, the cash gets drained on the left side. The question is, how high is the limit of a drain on deposits?

Figure 1: Balance Sheet

Let's analyze the bank reserve requirements first. 
Chart 1: Reserve Requirements

Then we look at the capital and reserves of the banks. The capital and reserves are given in the last column (Table 1).

Table 1: Bank Statistics

woensdag 29 februari 2012

Silver Margin Requirements Hike: A Timeline

Today we had a pretty big decline in the price of silver and gold: almost a 7% decline. And by coincidence the timeline is precisely 5 months between each margin requirement hike.

The first big drop in the price of precious metals came on 02 May 2011.
The second big drop in the price of precious metals came on 23 September 2011 on top of another margin requirement hike and operation twist.
This time, something fishy is happening, but I can't tell what. Maybe another margin requirement hike?
Maybe because of Bernanke's testimony?

=> Bernanke Speech
=> Ron Paul at the Bernanke Testimony



The timing of course, is a pure coincidence. I'm wondering if they are trying to manipulate it down for a third time. We'll see...


Timeline of Margin Requirement Hikes in Silver/Gold (PSLV)


zaterdag 18 februari 2012

China: How Real Estate, Reserve Requirements, Yuan and US Treasuries interact

Real estate in China, which accounts for 13% of the Chinese economy, has been bottoming out since the beginning of 2012. China has been actively directing the bank reserve requirements and deposit rates since many years. What China is doing is not to be underestimated and I'll show this in this article: China: How Real Estate, Reserve Requirements, Yuan and US treasuries interact