2011

Dollar broadly mixed as the uncertainty over the Greek persist; German IFO beats expectations. News of a Greek austerity deal with EU-IMF are positive but risk surrounding austerity vote remain. China said efforts to stem inflation are…

Comstock Partners writes that a QE3 program is not completely off the table. It just appears at this point that the bar for doing it is so high that a prerequisite would be a collapse in the economy and a declining stock market. That would…

For my part, I am with Richard Koo. Monetary policy reflation will not work in a balance sheet recession when fiscal policy is contractionary. But at some point, the Fed will be compelled to act anyway.

The road map for how a Danish government might be forced to issue government bonds and swap them for unsalable covered bonds in order to allow its financial institutions to abide by the Basel rules is an almost sinister way in which the…

Young people and the elderly throw incendiary devices and yogurt to protest Greece's proposed austerity measures.

The Europeans are clearly trying to get comfort on the exposure to Greece in their domestic financial institutions. And if they do get that comfort, we are going to see a soft restructuring. I expect this before year’s end.

I expect a soft restructuring sometime in 2011 followed by a certain degree of dithering and a hard restructuring down the line. But, of course, the tail risk is there.

The Chinese Seven Day Repo Rate has skyrocketed to a 3-year high, suggesting a cash shortage as credit tightens.

Randall Wray revisits the Clintonian Goldilocks economy to find the seeds of the Global Financial Crisis, using the sectoral balance approach.

Dollar firmer across the board after profit taking capped losses; growth concerns still abound. Greece secures confidence vote, next hurdle is austerity vote; market focus shifts to FOMC meeting. Brazil likely to keep inflation target of…