The ISM Services report had “pause” tattooed all over, while the RBA hiked this morning in a surprise move. Is the RBA a harbinger for the BoJ? We also took notice of the WSJ story in increasing capital requirements for banks.
The ECB and the Fed keep referring to sound and resilient conditions in banking as they obviously need to. Beneath the surface, a cocktail of mediocre regulation, bizarre incentives and complacent authorities is likely to guide us into a continued bank crisis until rates come down. Here is why!