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Zydra, Markus

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2 articles of this author have been cited in the European Press Review so far.

Süddeutsche Zeitung - Germany | 05/09/2012

Central bank joker just a quick fix

Past experience has already shown that ECB intervention can't provide a lasting solution to the crisis, the left-liberal daily Süddeutsche Zeitung points out, arguing against the financing of government bonds: "Yes, the ECB can put as much money in circulation as it wants to at the touch of a button. But no, so far even the special privilege of printing money has hardly helped at all. So now for the next attempt. … The freshly printed money carries certain risks. For one thing there's the danger of inflation; the many millions drive up prices. Then there's the danger of losses, if for instance Italy left the Eurozone the ECB would be left sitting on a pile of government bonds with a high risk of default. The [German] taxpayer is liable for this to the tune of 27 percent. Has the Bundestag voted in this? No. … If the politicians want to save the Eurozone they should do it themselves, after consulting the people. There are a number of possibilities, from the introduction of euro bonds to a debt settlement pact. The ECB joker is tempting but it's easy to forget that it doesn't pay off in the long term."

Süddeutsche Zeitung - Germany | 06/10/2011

Gamblers shouldn't trade in derivatives

The EU finance ministers agreed on new rules to curb rampant trading in derivatives and credit default swaps on Tuesday in Luxembourg. These measures are urgently needed, notes the left-liberal daily Süddeutsche Zeitung: "The global market in derivatives is worth 570 billion dollars. ... It is growing at break-neck speed considering that in 2000 the volume was just 95 billion dollars. ... Whether it's interest, currencies, shares, raw materials, loans - derivatives have settled like mildew on all the normal securities. These day futures and options dictate the prices of oil, bread and copper. ... However the plans don't go far enough - policymakers should also limit access to this form of trading. For example it's legitimate and makes sense for an airline to be able to buy derivatives to protect itself against rising kerosene prices. But gambling banking groups that never physically put crude oil into storage and will never actually supply crude oil should be banned from derivatives trading. They just want to make a quick profit and end up generating constant anxiety - however citizens have an interest in stable market prices."

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