IPSE DIXIT Mario Draghi – Finanza.com

Disappointing, Mario Draghi at the ECB’s post-meeting speech very general, very political. Also true that he could not expose himself too much but … how to manage NPLs of Italian banks (and MPS)?

ECB meeting , as expected, ended with a “stalemate” at the operational level, but as explained yesterday in the post dedicated, what was expected was the post-meeting speech by Mario Draghi. Many issues HOT where you expected a. “Word of comfort super Mario”
Meanwhile Italian banks and the problem of the suffering.
Thus spake Mario Draghi:

“a public parachutes for non-performing loans of banks is a very useful measure, but must be taken agree with the EU and especially with DG competition Commission. “

So you all’aiutino public but agreed, of course, from Brussels. That banal, obvious that he could only answer that! But Draghi knows that the most urgent problem is called MPS. But he also knows that the famous sufferings are priced in the budget to DOUBLE value (if not more) than that it could be their real market value. And here is the problem and the two (if not three) possible solutions.

1. if the package is sold to the sufferings Atlas to TRUE market value, here you create the umpteenth chasm to be filled by a new capital increase.
2. If an overestimation of NPL will be made, it will create a bubble in the system, as this evaluation would become a benchmark for other banks.
3. So what to do? Here is that the Draghi speech comes right on cue. In these exceptional cases it might well intervene the state. Matter of public safety, put it this way …

From what you have read, it is therefore obvious that it is the ‘ yet another accounting alchemy which, inevitably, he will also have its downside. And so as not to agree to more and journalists critical of the Financial Times ?

(…) According to the financial daily “nothing prevents Rome to introduce a compensation scheme for small savers who were improperly sold risky securities, “but” still save Mps without imposing draconian restructuring would resemble the definition of Einstein’s insanity: doing the same thing again and again and expecting different results. This bank is not an innocent victim – writes the FT – His problems stem from a chain of errors committed by a host of actors – regulators, politicians and managers – for more than a decade. ” Now, continues the newspaper of the City, “the best hope is a bailout to end all bailouts”. (IFQ)

There must, therefore, and I fully agree, the ultimate solution to the problem MPS . A solution by force could also be painful, but DEFINITELY . Otherwise the dripping would be extended even indefinitely, without resolving the problems of a bank completely. “Sieve”
change the subject.

“Problem banks is the low profitability, solvency has improved “(Mario Draghi)

Dear Mario, on the profitability no objection. Solvency, it is relying on indicators CET1 & amp; Co. They are certainly important but it is also true that banks must continue to confront a complicated economic situation and the suffering that they return to rise in recent weeks.

The QE : confirmed until March 2017 and beyond, if necessary. But dear Mario you have not answered my question that I posed yesterday in the article. How do you plan to continue to the bitter end your QE when you no longer paper to buy? The ECB will become the new BOJ? Reclaim THIS POST to see what I’m talking about.

Still Draghi: To “be able to benefit fully from” the Qe “ need the contribution of other areas at national and European level for structural reforms that reduce unemployment and increase potential growth “. According to Draghi, resolve the issue of bank loans in the euro area “is very important” and should be a priority of the policy. Eurozone governments need to “speed up the pace of structural reforms to improve the business environment”. (IS24h)
Trivia even know the tables. But now these are chimeras …

The Brexit: “It’s too early to assess the economic impact of Brexit, an impact that the ECB” will consider ‘when we have more’ information ‘ . (…) In any case, the financial markets “have reacted to the increase in volatility” that followed the vote on Brexit “with encouraging resistance.”

So the Brexit at the moment is a NON problem. But what is happening in real estate?

The Turkey : “may weigh on confidence levels, but it is very difficult to quantify their impact on recovery economic euro area. “
policy Response, very clear. How much of what was said. Dissatisfied, sorry dear Mario, my QUESTIONS deserved a little ‘attention.

Playing reserved

STAY TUNED!

Danilo DT

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