Η ΟΜΑΔΑ ΤΩΝ ΤΡΙΑΚΟΝΤΑ ΠΑΓΚΟΣΜΙΩΝ ΤΥΡΑΝΝΩΝ(THE GROUP OF THIRTY)-Η ΣΚΙΩΔΗΣ ΠΑΓΚΟΣΜΙΑ ΚΥΒΕΡΝΗΣΗ

Ο ΘΑΝΑΤΟΣ ΤΩΝ ΑΓΟΡΩΝ

Institutions Scream Ahead Of Imminent Death Of Money Markets

Previously we explained on at least two occasions (here and here) why the upcoming death of the US money market industry is not greatly exaggerated: quite simply, as we wrote back in 2010, the Group of 30, or the shadow group that truly runs the world (see latest members) decided some time ago that it would rather take the «inert» $2.6 trillion held in money markets, and not used to boost the fractional reserve multiplier, and instead have it allocated to such more interesting markets as bonds and stocks. As a reminder, Europe already achieved this last month when it cut its deposit rate to zero leading to a sequential shuttering of money market funds.

The Fed, however, has to be far more careful to not impair the overnight General Collateral repo market which as everyone who understands the nuances of Shadow Banking knows is where all the bodies are buried, and as such has been far more careful in implementing such a shotgun approach.

Instead, Ben, the SEC, and the Group of 30 have adopted a far more surgical approach to destroying money markets: they want investors themselves to pull their money by implementing such terminally destructive measures as floating NAV, redemption restrictions and capital requirements, which will achieve one thing – get the end user to pull their money from MM and put the cash either into either deposits, where it can then proceed to be «fractionally reserved» into the banking system, or to boost AMZN’s 250+ P/E.

After all the number under observation is not modest: at $2.6 trillion, this is almost 20% of the market cap of the US stock market. So it was only a matter of time before major money market institutions, in this case Federated first, but soon everyone else, starts screaming and warning that money markets are about to die (which they are).

Of course, at the end of the day, whatever the Group of 30 wants, the Group of 30 gets: goodbye money market funds (more here). It was nice knowing you.

ΤΙ ΛΕΜΕ ΓΙΑ ΤΗΝ ΛΕΣΧΗ ΜΠΙΛΝΤΕΡΜΠΕΡΓΚ ΟΤΙ ΚΑΘΟΡΙΖΕΙ ΤΙΣ ΤΥΧΕΣ ΤΟΥ ΚΟΣΜΟΥ

ΚΑΙ ΠΡΑΣΙΝΑ ΑΛΟΓΑ.

ΦΑΙΝΕΤΑΙ ΟΤΙ ΕΧΕΙ ΞΕΘΩΡΙΑΣΕΙ ΑΠΟ

ΤΗΝ ΤΕΛΕΥΤΑΙΑ ΣΥΝΑΝΤΗΣΗ ΣΤΗΝ ΒΟΥΛΙΑΓΜΕΝΗ

ΚΑΙ ΟΤΙ ΑΥΤΟΙ ΠΟΥ ΚΑΝΟΥΝ ΚΟΥΜΑΝΤΟ ΕΙΝΑΙ

Η

ΟΜΑΔΑ ΤΩΝ  ΤΡΙΑΚΟΝΤΑ ΤΥΡΑΝΝΩΝ

(ΨΑΧΤΕ ΤΟ ΣΑΙΤ ΤΟΥΣ ΕΧΕΙ ΕΝΔΙΑΦΕΡΟΝ)

ΑΥΤΟΙ ΑΠΟΤΕΛΟΥΝ ΤΑ ΜΕΛΗ ΤΗΣ ΟΜΑΔΑΣ ΤΩΝ ΤΡΙΑΚΟΝΤΑ

Current Members

• Paul A. Volcker
• Chairman Emeritus,
• Group of Thirty;
• Former Chairman, Federal Reserve System
• View Bio »

• Jacob A. Frenkel
• Chairman of the Board of Trustees,
• Group of Thirty;
• Chairman, JPMorgan Chase International
• View Bio »

• Jean-Claude Trichet
• Chairman, Group of Thirty;
• Former President, ECB;
• Honorary Governor, Banque de France
• View Bio »

• Geoffrey L. Bell
• Executive Secretary, Group of Thirty;
• President Geoffrey Bell and Associates;
• Former Advisor, Bank of Venezuela
• View Bio »

• Leszek Balcerowicz
• Professor, Warsaw School of Economics;
• Former President, Bank of Poland
• View Bio »

• Mark J. Carney
• Governor and Chairman, Bank of Canada;
• Chairman, Financial Stability Board; Board of Directors, BIS
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• Jaime Caruana
• General Manager, Bank for International Settlements;
• Former Governor, Banco de Espana
• View Bio »

• Domingo Cavallo
• Chairman and CEO, DFC Associates, LLC;
• Former Minister of Economy, Argentina
• View Bio »

• E. Gerald Corrigan
• Managing Director, Goldman Sachs Group, Inc.;
• Former President, Federal Reserve Bank of New York
• View Bio »

• Guillermo de la Dehesa Romero
• Director, Grupo Santander;
• Former Deputy Director, Banco de Espana
• View Bio »

• Mario Draghi
• President, European Central Bank;
• Former Governor, Banca d’Italia;
• Former Chairman, FSB
• View Bio »

• William C. Dudley
• President, Federal Reserve Bank of New York;
• Former Partner and Managing Director, Goldman Sachs
• View Bio »

• Martin Feldstein
• Professor of Economics, Harvard University;
• President Emeritus, National Bureau of Economic Research
• View Bio »

• Roger W. Ferguson, Jr.
• President and CEO, TIAA-CREF;
• Former Chairman, Swiss Re America Holding Corporation
• View Bio »

• Stanley Fischer
• Governor, Bank of Israel;
• Former First Managing Director, International Monetary Fund
• View Bio »

• Arminio Fraga Neto
• Founding Partner, Gavea Investimentos;
• Former Governor, Banco Central do Brasil
• View Bio »

• Gerd Häusler
• CEO, Bayerisch Landesbank;
• Former Managing Director and Member of the Advisory Board, Lazard and Company
• View Bio »

• Philipp Hildebrand
• Senior Visiting Fellow, Blavatnik School of Government, Oxford University;
• Former Chairman of the Governing Board, SNB
• View Bio »

• Mervyn King
• Governor, Bank of England;
• Former Professor, London School of Economics; Fellow, The British Academy
• View Bio »

• Paul Krugman
• Professor of Economics, Princeton University;
• Former Member, Council of Economic Advisors
• View Bio »

• Guillermo Ortiz
• President and Chairman, Grupo Financiero Banorte;
• Former Governor, Banco de Mexico;
• Chairman of the Board, Bank for International Settlements
• View Bio »

• Raghuram G. Rajan
• Professor of Economics, Chicago Booth School of Business;
• Economic Advisor to Prime Minister of India
• View Bio »

• Kenneth Rogoff
• Professor of Public Policy and Economics; Harvard;
• Former Chief Economist, International Monetary Fund
• View Bio »

• Tharman Shanmugaratnam
• Deputy Prime Minister and Minister for Finance and Manpower, Singapore;
• Chairman, Monetary Authority of Singapore
• View Bio »

• Masaaki Shirakawa
• Governor, Bank of Japan;
• Former Professor, Kyoto University School of Government
• View Bio »

• Lawrence Summers
• Charles W. Eliot University Professor at Harvard University;
• Former Director, National Economic Council;
• Former President, Harvard University; Former US Treasury Secretary
• View Bio »

• Lord Adair Turner
• Chairman, Financial Services Authority;
• Member of the House of Lords, United Kingdom
• View Bio »

• David Walker
• Senior Advisor, Morgan Stanley International, Inc.;
• Former Chairman, Securities and Investments Board
• View Bio »

• Axel A. Weber
• Chairman, UBS;
• Former Visiting Professor of Economics, Chicago Booth School of Business
• View Bio »

• Yutaka Yamaguchi
• Former Deputy Governor, Bank of Japan;
• Former Chairman, Euro Currency Standing Commission
• View Bio »

• Ernesto Zedillo
• Director, Yale Center for the Study of Globalization, Yale University;
• Former President of Mexico
• View Bio »

• Zhou Xiaochuan
• Governor, People’s Bank of China;
• Former President, Chinese Construction Bank;
• Former Asst. Minister of Trade
• View Bio »

Contributors and Supporters

 

The Group of Thirty is a 501c3 non-for-profit institution. Donations in support of our program and activities are tax deductible. If your institution would like to become active in and support our work, please contact the Group of Thirty staff for more information on (202) 331-2472 or via email on info@group30.org. We look forward to hearing from you.

Absa Group Ltd
Arab Fund for Economic and Social Development
Asociacion Española de Banca (AEB)
Austrian National Bank
Banca d’Italia
Banco Central de Chile
Banco de Galacia
Banco de Portugal
Banco Mercantil
Banco Santander
BancoSabadell
Bank Leumi le Israel BM
Bank of East Asia, Ltd.
Bank of Nova Scotia
Bank of Tokyo Mitsubishi UFJ
Bankia
Banque Centrale du Luxembourg
Banque de France
BM&F Bovespa
BMCE Bank
BNP Paribas
Brown Brothers Harriman & Co.
Caxton Associates
Central Bank and Financial Services Authority of Ireland
Central Bank of Barbados
Central Bank of Jordan
Central Bank of Malta
CIB Bank Ltd
Citicorp
Commonwealth Bank of Australia
Credit Suisse
Danmarks National Bank
Debs Foundation
Deutsche Bank AG
Dubai Financial Services Authority
Ferguson, Roger
Gavea Investimentos
Goldman Sachs and Co.
Gulf International Bank
Hong Kong Monetary Authority
HSBC Holdings Plc.
Indian Banks’ Association
Itau Unibanco
Japan Credit Rating Agency
JPMorgan Chase
Kaufman Foundation
LCH Clearnet Group Limited
Mizuho Financial Group Inc
Monetary Authority of Singapore
Moore Capital Management
Morgan Stanley & Co., Int’l
National Bank of Hungary
Olayan Group
People’s Bank of China
Reserve Bank of Australia
Reserve Bank of India
Roth, Peter
Russo, Thomas
Sella Holding Banca
Singapore Government Investment Corporation
Soros Fund Management/Open Society Institute
Sullivan and Cromwell
Sveriges Riksbank
Swiss Re
The Challenger Foundation
Tudor Investment
UBS
UniCredito Italiano
Whitehead Foundation

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• How Money Market Reform Would Affect Your Investments
• This Is The Government: Your Legal Right To Redeem Your Money Market Account Has Been Denied – The Sequel
• What are Money Market Funds?