A few links for the weekend
Here are a selection of a few interesting articles for you to read on the weekend.
- Engadget reports that there is now a bitcoin-like system for real gold trading purposes. The gold is stored in various vaults and you are allocated a share of it every time you buy this gold-backed cryptocurrency (however, forget the last paragraph of the article, which is economic nonsense made in Engadget).
- Moldova decided to restrain inflation by… raising reserve requirements. What fools! They’ve clearly never heard of the endogenous and MMT theories! Unless…
- Benoit Coeuré, one of the top ECB officials, revealed some ECB plans to a selection of hedge funds/investors way in advance of the publication of his speech on the ECB website. Easy profits when you’re one of the privileged few… Funnily, regulators would have literally jumped down the throat of the private company that would have done exactly that. But the ECB? Well, you know, it just happens. No big deal really.
- Margin compression, margin compression, margin compression… HSBC just declared that it would start charging other banks for depositing non-GBP currencies at the bank. Who said negative rates were helping the financial sector?
- BuzzFeed writes that online lenders could “take billions of profit away from big banks.” It quotes a recent Goldman Sachs report which estimated that $4.6Bn of banking profits could be lost to P2P platforms, which could capture 15% of the consumer loan market (see my recent post that refers to a recent report by another investment bank, Morgan Stanley, on the exact same topic).