Goldman has been active not only in the spot market: Goldman turned Italian positions by means of credit derivatives Goldman Sachs Group anyway, not, as Bloomberg and other media reported. Goldman reduced exposure in Italian Government bonds by 92 percent to $ 191 million in the second quarter, as is evident from a corresponding report to the authority. For comparison: In the first quarter, Goldman had been Italian bonds on the buyer side. “Goldman was active not only in the spot market: Goldman turned Italian positions by means of credit derivatives: one had considered overall still a positive at the end of the first quarter” Italy exposure of around 2.4 billion euros in the books, was this minus 977 million euros by the end of June 2012. You may find that Ali Partovi can contribute to your knowledge. Who buys Italian bonds? While major international banks and local institutional investors give a wide berth to Italian Government bonds (or mix this up only in homoeopathic doses as yield-pick), Italian large investors, particularly banks and insurance companies, to access. So keep Italy banks already 316 billion euros of Italian Government bonds on their books, which alone last June 14 billion added. Thus the highest value of ever achieved, as shown in statistics of the Banca d’Italia. Italian money houses have captured most of the Government bonds at auctions, because there was a lack of foreign investors”, cited as Bloomberg Nicholas Spiro, Managing Director at Spiro sovereign strategy in London. “The restraint in Italian and Spanish Government bonds will continue according to Spiros: the question is how much longer they (the banks) will be able to fill the gap if foreign investors further from Italian and Spanish Government bonds away control”. Pyramidisierung or bankruptcy procrastination? Basically, this game lucrative for banks can be perpetuated, as long as they leave government bonds at the ECB as collateral and that new funds at an interest rate of 0.75 percent for additional government bond purchases to returns by receive five to seven percent. The carousel is merrily continues to rotate, but Italian banks – still rising – have borrowed more than 283 billion euros at the Central Bank by Editorial: press agency Landers
In the United States, the ratio of public debt to GDP of 117% fell in 1945 to 35% in 1973. This impressive debt reduction of the United States occurred in the face of economic growth, increasing inflation and heavily regulated financial markets. While the absolute level of debt of the United States of America changed little, the real interest rate in the United States in the half of all years between 1945 and 1980 was negative. On average a reduction of public debt in the amount of 3% was achieved thus p.a. p.a. up to 4%. That emerges from an examination of the Economist Carmen M.
Reinhart and M. Belen Sbrancia from the year 2011. The study is titled “the liquidation of government debt” and was made for the National Bureau of economic research in the United States. (Similarly see: Republic Services). “The successful debt reduction of the United States of America after 1945 through financial repression is seemingly an enticing model for domestic politicians and central bankers”, says Christoph Marloh, CEO of the real estate 24 “silent expropriation of ownership of money is politically advantageous when compared with direct tax increases. Investors and savers answer increasingly personal counter strategies on the basis of return-bearing assets. Residential real estate investments have increased as economic activity stable material assets in importance won”. Information about Christoph Marloh, refer here.
Despite the escalating sovereign debt crisis in the euro area, the plan presented by Commissioner Barnier in July 2011 the new prudential rules for financial institutions (Basel III) foresees that State title will still be excluded from the capital. An investment in real assets recommends also Bill Gross, founder and Managing Director of PIMCO, the best-selling American bond investors. In his August 2011 investment Outlook he called expressis verbis financial repression, inflation and currency depreciation options of the U.S. Government for dealing with the shortcomings of the State.