Technical not political but essential measures

And if, instead of focusing on the restoration of the balance sheet of banks, should be instead "jump box banks" to revive the credit States have prevented the bankruptcy of major banks. Needed because the continuation of the financial domino would have resulted us in the brink of a major deflation. But now

Hundreds of billions of euros have already been invested in sector financial and most still potentially pledged guarantees of deposits. And we want to increase again to organise a "bad banks" or structures of hiving-off of loss memory in France since the CDR, which cost French taxpayers tens of billions of losses! The revival of the credit would be at that price. Of Obama to the European Commission or the G7, each is in its formula. But at what price back toxic assets Too expensive and these "bad banks" will be a chasm; but cheap enough and it does not really relieve the balance sheet of banks. How to avoid that after taking reckless risks and to be défaussés to 100 up to the implosion of the financial bubble, banks now not to dump future losses accumulated this time in the States and therefore citizens

Solutions exist: oblige banks to keep a part of the risk on their balance sheets. give time to time to not have to sell in the emergency in markets seem to still more low prices... It will take months, but can be found intelligent solutions, more or less coordinated on the planet. It will take behind many years of management of those risks to defuse them. And if to insist on the fitness of the balance sheets banks substituting one way or another for their mistakes of the past was a dead end And if the means to develop were disproportionate to the results

There is urgency for our growth and our jobs. This urgency is simply inconsistent with the rate of removal of the errors of the bubble. Time to deal with everything, the real economy will be definitively ashore. Banks have created a cumulative risk level that exceeds many times their own funds. The injections of capital were covered layer of emergency but others are still to come: the flaws in loans to leverage operations the LBO that the recession will be unable to honour their commitments and risks are well provisioned today; the risk of failure of the heavily indebted groups that are likely to know the same fate by a year, such as us energy groups...

Reality: the purge is not finished and the banks are not able to revive the credit. Hounded by a low capital level and by the prospect of further losses, they try to replenish forces and survive rather than lend massively. Lived reality: not only they have not restarted the credit at the desirable level for our companies, but when they renew existing credit lines, they benefit to outrageously restore their margins, raising the cost for companies and slowing down any hope of recovery. The margin of their loans has increased by the order of 300 points, or 3. For an SME that borrows EUR 10 million is 300,000 euros of additional costs and jobs in less. The best stimulus plans will see any impact limited by the inability of banks to finance the economy level.

The mob against the political decisions to help banks will intensify. Poujadiste review of "why step 200 euros for me then it is so easy to unlock billions to the banks" will increase the social climate at the worst time.

Then what to do Act by giving priority to actions that mobilize not heavy public resources. Two priorities: reform solvency ratios and accounting standards. Solvency ratios lead to the risk in the bubble period and prevent action in times of crisis. It must be them now lower back margins of manoeuvre to banks and demand the constitution of reserves in boom times. Accounting standards, to put an end to the "mark to market" dictatorship of the short term. Technical, not political but essential measures.

But, especially, when it is cornered in a corner, the best solution is rarely stay there to continue to take time. Arbitration of the banks between replenishment of resources or margins, and deletion of past mistakes have no reason to coincide with the objectives of recovery and financing of our economies. Need to take action.

Jump box banks Even give guarantees, it would be preferable that central banks today are their direct guarantee bond of the industrial groups. Industry could financed more volume, faster, probably on periods longer and especially cheaper directly with investors reassured by the guarantees of central banks. A superéquation of recovery of credit and the economy by industrial investment.

For SMEs with no access to the market of solutions are possible, such a guarantee given on the toxic assets that fall into account in the factoring and therefore in the financing of their activities. The security level will be more effective and active and at the level of banks...

Banks feel désintermédiées No doubt. This fouettera their imagination. Fear of losing their market share, it should thrive ideas to resume their business credit. Yes, we must change the paradigm. To revive the credit, you should jump box banks!