{"id":26990,"date":"2017-10-18T17:36:10","date_gmt":"2017-10-18T22:36:10","guid":{"rendered":"http:\/\/olduvai.ca\/?p=26990"},"modified":"2017-10-18T17:36:10","modified_gmt":"2017-10-18T22:36:10","slug":"ray-dalios-shorting-the-entire-eu","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=26990","title":{"rendered":"Ray Dalio\u2019s Shorting The Entire EU"},"content":{"rendered":"
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Ray Dalio\u2019s Shorting The Entire EU<\/a><\/span><\/h3>\n<\/div>\n<\/header>\n
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\nSalvator Rosa Heroic battle <\/b>1652<\/center>A point BOE Governor Mark Carney made recently may be the biggest cog in the European Union\u2019s wheel (or is it second biggest? Read on). That is, derivatives clearing. It\u2019s one of the few areas where Brussels stands to lose much more than London, but it\u2019s a big one. And Carney puts a giant question mark behind the EU\u2019s preparedness.<\/p>\n

Carney Reveals Europe\u2019s Potential Achilles Heel in Brexit Talks <\/a><\/p>\n

Carney explained why Europe\u2019s financial sector is more at risk than the UK from a \u201chard\u201d or \u201cno-deal\u201d Brexit. [..] When asked does the European Council \u201cget it\u201d in terms of potential shocks to financial stability, Carney diplomatically commented that \u201ca learning process is underway.\u201d Having sounded alarm bells about clearing in his last Mansion House speech, he noted \u201cThese costs of fragmenting clearing, particularly clearing of interest rate swaps, would be born principally by the European real economy and they are considerable.\u201d<\/i><\/p>\n

Calling into question the continuity of tens of thousands of derivative contracts <\/b>, he stated that it was \u201cpretty clear they will no longer be valid\u201d<\/b>, that this \u201ccould only be solved by both sides\u201d and has been \u201cunderappreciated\u201d by Europe <\/b>. Carney had a snipe at Europe for its lack of preparation \u201cWe are prepared as we should be for the possibility of a hard exit without any transition\u2026there has been much less of that done in the European Union.\u201d<\/p>\n

In Carneys view \u201cIt\u2019s in the interest of the EU 27 to have a transition agreement. Also, in my judgement given the scale of the issues as they affect the EU 27, that there will ultimately be a transition agreement. There is a very limited amount of time between now and the end of March 2019 to transition large, complex institutions and activities\u2026<\/b><\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Ray Dalio\u2019s Shorting The Entire EU Salvator Rosa Heroic battle 1652A point BOE Governor Mark Carney made recently may be the biggest cog in the European Union\u2019s wheel (or is it second biggest? Read on). That is, derivatives clearing. It\u2019s one of the few areas where Brussels stands to lose much more than London, but […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5582,15711,16574,16575,1668,218,16576,1464,7007,13924,6161,5177],"class_list":["post-26990","post","type-post","status-publish","format-standard","hentry","category-economics","tag-brexit","tag-carney","tag-clearing","tag-dalio","tag-derivatives","tag-draghi","tag-insolvent","tag-italy","tag-juncker","tag-raul-ilargi-meijer","tag-soros","tag-the-automatic-earth"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26990","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26990"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26990\/revisions"}],"predecessor-version":[{"id":26991,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26990\/revisions\/26991"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26990"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26990"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26990"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}