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From today's Eurointelligence:
ECB attacks Weidmann over ,,devastating signal" on target balance

According to Der Spiegel, there is outrage at the top of the ECB about Jens Weidmann's letter to Mario Draghi criticizing the generous conditions for banks in the 3y LTRO's and the consequences this has on the Target balances, Der Spiegel reports. The magazine claims that within the ECB this was greeted as a ,,devastating signal". Weidmann told the weekly that with the 3y LTRO's and the simultaneous loosening of collateral requirements the euroystem's central banks had taken considerable risks on their balance sheets that were ,,at the limits of their mandate". The Bundesbank president urged his colleagues to tighten those standards again as soon as possible. However there is disagreement with other powerful Governing Council members. Banque de France governor Christian Noyer warned against a precipitated exit from the ultra-loose refinancing measures. ,,We can do that once the crisis is over", Noyer said. ,,During this crisis the central banks had to invent new instruments", he said adding that the ECB's main aim remained insuring price stability. Also Handelsblatt's ,,shadow council"of senior economists criticized Weidmann for going public with his criticism on the 3y LTRO's and the Target balances.



There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Carrie (migeru at eurotrib dot com) on Mon Mar 5th, 2012 at 05:41:23 AM EST
[ Parent ]
Handelsblatt: EZB-Schattenrat kritisiert Weidmanns Vorstoß
Einige, vor allem deutsche Mitglieder des Schattenrats begegneten dem Anliegen Weidmanns dagegen mit mehr Sympathie. Commerzbank Chefvolkswirt Jörg Krämer regte an, die Länder mit hohen negativen Target-Salden, sollten diese mit ihren Gold- und Devisenreserven absichern müssen.
ECB shadow council criticises Weidmann's proposal
Some, principally German members of the Shado Council, meet Weidmann's proposals with more sympathy. Commerzbank Chief Economist Jörg Krämer suggested that the countries with high negative Target balances should be obliged to secure these with their Gold or foreign currency reserves.


There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Carrie (migeru at eurotrib dot com) on Mon Mar 5th, 2012 at 06:06:42 AM EST
[ Parent ]
10 questions before getting secured credit cards
You need one to make a hotel or plane reservation, or to rent a car, even if you plan to pay cash. Many stores require a credit card to accept your check. Responsible use of a credit card builds a good credit rating, too, marking the owner as mortgage-worthy.

But people who have never had credit or need to repair a poor credit history may not qualify for a regular credit card. For them, a secured credit card may be the only way to establish, or re-establish, credit.

If you're in that boat, here are the answers to the top 10 questions about secured credit cards.

1. What is a secured credit card?

A secured card requires a cash collateral deposit that becomes the credit line for that account. For example, if you put $500 in the account; you can charge up to $500. You may be able to add to the deposit to add more credit, or sometimes a bank will reward you for good payment and add to your credit line without requesting additional deposits.

Meet the Greek Escrow Account and the Securitised Target2 Balance: the loan where you get to pay interest for the privilege of borrowing from your own collateral.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Carrie (migeru at eurotrib dot com) on Mon Mar 5th, 2012 at 06:15:18 AM EST
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