WHEN THE ECB IS A FINANCIAL PROMOTER: TENS OF CALLS TO HAVE ITS ERRORS
According to the WSJ , the chief economist of the European Central Bank made "dozens of private calls" to banks and investors after this year's policy meetings in what the ECB called "an unusual attempt to support sometimes bewildering public communications. of the central bank ".
According to the report, the appeals began in March, after President Christine Lagarde, who always proved to be a mess in communication, stunned traders by stating at a press conference that the central bank would not support the Italian bond market even in cx of increase in the spread, because "The ECB does not deal with Spread". Of course, the markets went crazy selling Italian stocks en masse and an intervention by chief economist Philip Lane was needed to "Explain" Lagarde. The economist called the administrators of 11 major world investment banks to give the true meaning to the words and works of its president.
Translating for the vulgar: Lane "explained" to a highly privileged group of ultra-wealthy investors not to sell their bonds because Lagarde had no idea what she was saying, and would make it clear to her what she "meant". Basically he was a top-notch Financial Advisor, only his advice was based on first hand news.
Of course, this is hardly the first time the ECB has found itself in trouble for leaking confidential information it can influence with a group of "close friends". Indeed, as the WSJ writes, citing former central bank officials – strange how former central bank officials always tell the truth, never current ones – he said that "calls risked privileging large investors with sensitive information."
Serious central bankers closely monitor their claims and try to get the information to all market participants at the same time, at least officially. For example, Mario Draghi and his chief economist, Peter Praet, have never had to make such calls during their tenure. However, even during their tenure, some councilors messed around by revealing confidential information during private dinners.
Christine Lagarde has never understood that anyone who holds a very high economic role must be extremely cautious in words. When he was at the IMF, his claims about Argentina, coupled with his work, lost billions with Argentina. But in this case, the chief economist of the ECB, calling only the most important operators, made a big mistake and showed how the central bank privileges the big operators to the detriment of others.
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The article WHEN THE ECB IS THE FINANCIAL PROMOTER: TENS OF CALLS TO HAVE THEIR MISTAKES comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/quando-la-bce-fa-il-promotore-finanziario-decine-di-chiamate-per-sanare-i-propri-errori/ on Wed, 02 Dec 2020 07:00:23 +0000.