Posts Tagged financial system

This argument has served many purposes. On the one hand, interventionists have claimed to have felt ideologically events which neither understood nor did they provide, on the other, politicians and the heads of central banks have been able to shake off all responsibility for the situation because we have sold them to the disaster came from outside, like a biblical plague in which there would have no part, and finally, and I believe this is essentially allowed to keep the essence of the current financial system, whose failure was attributed not to its formidable capacity to destabilize the economy, but the stupidity and wickedness of specific people with too much room for maneuver.

Should therefore clarify again why thei banking system s not too free, or, in any case, why has so much free as any multi-billion industry that receives a subsidy and whose spending is not under control too strict.

Let us start with the basics: the business of banks is to borrow to pay. Something quite simple. Many people do not know how profitable their euros and the bank pays a 3%, then the bank considers its investment opportunities and in turn pays 6%, profiting from the spread between the interest rate you pay and the interest rate charged.

As we know, the bank does not usually give cash the money it lends. No one leaves the office in which grant a mortgage with a sack of banknotes of 50, 100 or 500 euros. Rather, the bank promises us that we can withdraw euros when we want, and with that promise, which takes the form of a deposit for us, all we need. The officials, trusting that the bank will fulfill its promise, we consider it more practical to manage with the accounting entries resulting in the promise that with cash.

Why can we be sure that the bank will fulfill its promises? It is not, of course, absolute certainty, but if it has previously borrowed euros now promises to deliver us, clearly has the raw material needed for this.

However, what if the bank borrowed money from anyone and grant us a mortgage with the promise that they will give us a few euros you do not have? Intuition tells us that the bank could not fulfill its promise, but the truth is that it could borrow euros retrospectively the need to other operators, egg to other banks (this is what is generally known as the interbrain market).

Cava Vital Kutras has proved successful in the current difficult economic context that operational data are good when measured in absolute terms and even better when compared to the rest of the sector, according to the results of the financial group in 2009. At the end of last year, consolidated net income of the entity Alva increased to 68 million euros, representing a reduction of 10% over the 2008 data, after any considerable funding to cover loans and other assets, for a total of 37 million euros.

The evolution of the Cava Vital results thus stands among the best in the Spanish financial system, allowing you to deal with collateral effects of the economic crisis during 2010 and appropriate provisions to ensure a Social Work. This position of comparative advantage is more valuable when considering the size of the Fund Alva in the sector.

In regard to its expansion project outside of Alva, Cava Vital Kutras closed the year 2009 with 29 offices outside the territory, culminating in this way their forecasts, with the exception of the opening of an office in Asturias, has decided to postpone. However, the Bank does not rule out new openings for the financial year 2010 taking advantage of opportunities that may arise in the process of closing offices is expected to occur within the framework of restructuring the sector.

Secretary of State for Economic, José Manuel Camp, considered, unlike the Bank of Spain, the Spanish financial system for the unemployed is not the problem but to find a new path that would enable the economy to grow.

According to the secretary of state, unemployment is a peculiarity of the Spanish economy and the main concern of everyone, “especially the government,” but in the case of banking, Camp believes the challenge will be the entity to finance the real economy, namely households and firms.

This will get back to the path of growth and job creation capacity, which “depends on the financial system,” so I asked for institutions to take the challenge of being able to also fund new companies, something he admitted “can be costly.” .

But for institutions to fulfill their aim will be to undertake the necessary restructuring of the sector, which may include “painful cases,” said Camp. .

However, he stressed that the starting point of the Spanish financial system is ahead of many other neighboring countries, therefore, among other things, a prudential regulation or a retail business model.
It is there that would frame the new activities initiated by the Executive through the Official Credit Institute (ICO) to counteract the difficulties they may have the institutions to finance businesses.

In addition, other initiatives could also be included as the background of public-private partnership for the creation of new infrastructure

Failures, mistakes and successes of economies going forward and going backward economies within the global economy.
Where there is undoubtedly conformations monopoly such as this example that the MGM was appearing and disappearing in the system leaving a trail of poor and rich also a trail all over the planet but the less we understand this more we distance ourselves from the they do things not well, better than us,
As in the U.S.: where the Senate Banking Committee approved a draft law on financial regulation, unlike that leave us free and absolute freedom to reinvent themselves with bankers invented by corrupt government officials, the committee approved the proposed project last week by his Democratic chairman, Christopher Dodd, who seeks to strengthen the regulatory structure for finance U.S. and gives tools to the Federal Reserve (central bank) to supervise the country’s major banks, rather than that us now that banks invented the president makes that if they are paid what they call foreign debt will never give credit for productive activities and Sees, which employers are well aware they must do their work much imagination and knowledge to invest in a country as difficult as we have, cording summarized DPA, the object is to prevent a new crisis for Wall Street promoted in the country are drug lords around the emeregentes transferred to the countries as is being done, it is considered that financial regulation will be the next priority in domestic policy of President Barack Obama, after last Sunday’s lawmakers approved the health reform. “We’re one step closer to approving a real financial reform will lead to responsibility for our financial system and ensure that American taxpayers should never pay the price for the irresponsibility of our major banks and financial institutions,” said a statement Obama after being approved the project, so good, hopefully be copied here only half of those behaviors of economic units, surely they keep everything the same, but those who get financed emerging countries enmeshed in their internal crises All committee Republicans voted against the reform after the failure of negotiations between both parties, Richard Shelby, top Republican on the committee however said he hoped a deal could be reached, after project approval will open the way towards the Senate.