2012

There is plenty of room for policy error. The reasons to fear a Lehman-like event still seem compelling. European officials suggest the problem is the lack of implementation of reform and growth measures in Greece. No doubt there is an…

Anti-Euro MP Nigel Farage says the troika's economic policy in Greece is moving that country toward a violent revolution.

I am not particularly shocked or worried about the cancelled European finance ministers meeting. I still think this bailout gets done because Europe and the markets are not prepared for a disorderly default and politicians cannot risk the…

The vagaries of Europe's debt crisis continues to be the most important driver of the short-term price action in the foreign exchange market. Indications that Greek New Democracy leader Samaras would sign a letter of commitment to the aid…

Financial news links for 15 February 2012

This post discusses how politics and economics will interact in the Greek debt crisis and lead to default and euro zone exit.

Despite the Greek parliament's approval of austerity measures, there is still considerable uncertainty in the Greek situation. This post outlines many of the issues still up in the air.

The US dollar is broadly mixed against the majors and EMs after the market appears to have shrugged off Moody’s downgrades of European sovereigns. Central banks ability to surprise the market remains intact, even in these trying times. It…

Central banks' ability to surprise the market remains even in these trying times. It was the Bank of Japan's turn today. It surprised the market in two ways. First, it expanded its asset purchase plan by JPY10 trillion ($128 bln).…

Financial news for 14 February 2012