hungarians allowed to close their chf mortage at 180 instead of 230 current rate. Austrian banks furious, appealed to european comission and court of justice, a chf 6 bio of leoans in Hungary by kester eddy. turkey macro picture, high growth and currency devaluation to reduce 9% deficit . AUD 6% correction reflects slowing world economy and concerns on overexposed domestic banks

Britain banking reform, ring fencing btw retail and invetsment banking, welcome back glass steagal act, + new capital requirements.FHFA and refusal of refinancing at lower rates on the argument that they are an income based business.

Martin Wolf on EU crisis , Germany stop being a small competitive economy

The extent of the breakdown was not brought home to me by the resignation of Germany’s Jürgen Stark from the board of the European Central Bank, nor by the looming Greek default, nor by new constraints imposed by the German constitutional court. What brought it home to me was a visit to Rome...In the absence of strong institutions, the attitudes and policies of the core country have become crucial. Along with everybody else, I admire the political and economic reconstruction of Germany after the second world war and again after unification, the commitment to economic stability and its first-class manufactured exports. Unfortunately, these are insufficient. German policymakers persist in viewing the world through the lens of a relatively small, open and highly competitive economy.

Chinese sovereign fund run by Lou Jiwei decreased its cash form 30 to 4% to enhance returns investing in Italy, previously w/ Spain and Portugal in 2010 in exch of ham and olive oil exports! european banks capitalised by china, while ecb divided on policy to adopt and in waiting for efsf. Stark dismissal, the last of the teutonics mohicans may be positive at times of unorthodox policies. Only oneleft, munchau from european intelligence always wrting for the FT. Nigeria diversifying currency reserves from oil into renimbi.

a crisis of undercapitalisation as well as policy muddle, john Penders

Many continental European bankers called the recent complaint by the head of the International Accounting Standards Board to the European Securities and Markets Authority about poor provisioning unhelpful. Then they wonder why French banks, which have been marking to make-believe models rather than to more realistic market-based prices, have seen share prices collapse. ….Note, though, that the only way the world seems able to deal with the misaligned exchange rates that contribute to the global imbalances at the root of this long running saga is by having China and other emerging markets run higher rates of inflation than those in the developed world, causing their real exchange rates to rise. As the economist Andrew Smithers argues, rapid inflation can lead to crises in emerging markets, so very low inflation in the developed world is essential to achieve a suitable gap in relative inflation rates to permit a crisis-free convergence of living standards between the emerging markets and the mature economies. IDEA REPEATED IN MY ARTICLES, CONCEPT OF CENTRAL BANKS COLLABORATION DURING THE 1920'S , COMEPTITTIVE MOVE OF SNB FREE FROM ANY POLITICAL BONDS REGAINING ITS waning