The bazooka, for now, is not enough to avoid the ups and downs of the Stock Exchanges. Credit Suisse’s public-private bailout is not enough to calm the markets. Nor has the maxi-shield guaranteed by six central banks, led by the ECB and the Fed, had the whatever-it-takes effect hoped for by Christine Lagarde and Jerome Powell.
Credit Suisse-Ubs, cold fusion rejected. That’s why it didn’t convince the markets
sandra riccio
The race to hastily close a 3 billion operation over the weekend (plus 200 in public guarantees) and the eagerness to disseminate reassuring announcements on Sunday evening were interpreted by the markets more as a signal that the problems are significant than as authoritative assurances. The new tensions on the Stock Exchanges, and above all on banking stocks, this Monday morning show that the forecasts of those who assured that everything would recover quickly and that the crisis of confidence triggered by Silicon Valley Bank would be resolved after a few days of turbulence. If it is true that the European banking system seems much more solid than fifteen years ago thanks to different rules and numbers, a Lehman Brothers crisis is starting to go from a school hypothesis to a scenario well taken into consideration on the tables of finance and institutions.
In 48 hours the Fed will have to decide on interest rates, after the ECB has gone straight on its own path. In the dilemma between inflation and growth, a third, very heavy variable has entered: the stability of the credit system. And its credibility.