3 out of 3 Analysts agree that their bonuses have been guaranteed for the next 9 years. A bit of a cheeky headliner on Zero Hedge, which likely is a decently accurate interpretation of how most folks see a 9 year lead in period to the new BASEL III Capital Adequacy requirements.
As pointed out by the folks at CS an awful lot can happen in 9 years. Infact a whole market shift can occur, not to mention new markets created and developed.
Seems on the face of it that in its finality the regulations seem a bit of a cop out but maybe not so surprising necessarily, in light of the "stress tests" undertaken and what belatedly has been acknowledged as the lax nature of said stress tests.
Understandably we have a pretty decent equity rally underway since last week led by European financials.
Interestingly the same financials no doubt where so much concern was being expressed a short while ago (in particular with a focus on French and German Banks) re their exposure to the PIIGS.
Suddenly they are all a buy, which once again brings up the whole notion and idea of market behaviour and the drunkards walk aspect it often seems to follow.
While summer isn't officially over, Labour Day seems to always provide that cut-off point and it. Lo and behold the Greeks having finished their summer vacation have taken to the street once more in protest. It has been a disaster waiting to happen and has seemed inevitable . The refusal to undergo the hard therapy that is restructuring, has simply put off the inevitable, as the ECB and IMF support is providing little sway based on what short term Greek rates currently represent!
Its mixed out there with some encouraging signs; but an awfully long way to go and with interpretation open to all ( bit like last weeks BoC guidance really)!
