Sign in
Sign in
Recover your password.
A password will be e-mailed to you.
Browsing Category
Members
German policymakers don’t understand debt deflation
Debt deflation is taking hold in Europe. We have seen the crash in Greece's economy unfold over the last two years. And now we are witnessing similar things in Spain. As Marshall Auerback puts it, Spain is the New Greece. But now come signs…
Global manufacturing index hits three-year low
Much like the US manufacturing index, the global manufacturing index has hit three year lows. The numbers indicate a contraction in global manufacturing activity, with the JPMorgan Global Manufacturing PMI now below 50% at 48.9% for June…
[Premium]: My thoughts on first contraction in US manufacturing activity since 2009
The Institute for Supply Management released its widely-followed index of manufacturing activity today. The data show that the US manufacturing sector contracted in June for the first time since July 2009. Given economic weakness elsewhere…
Portfolios must shift as US corporate profitability falls
Earlier in the year, I predicted that corporate profitability would fall as US corporate profit margins were cyclically high. The New York Times is reporting that corporate profits fell in Q1 2012 for the first time since the fourth quarter…
QE wouldn’t have made any difference because lower rates won’t fix the economy
The big news in the US today was the Federal Reserve's Open Market Committee's decision to extend its simultaneous purchase of longer-dated Treasuries and sale of shorter-dated ones. This effort, dubbed Operation Twist, was set to expire at…
Europe allegedly presents Barack Obama secret plan to solve euro crisis at G-20: sources
According to US administration sources, Barack Obama has received guarantees from European leaders who met Tuesday at the G-20 that soon, likely at next European Council meeting, Europe will announce a comprehensive plan that is designed to…
Italy casts doubt on the timely start of the ESM and its ability to bail out Spain
The latest, with Spanish ten-year debt over 7% and 12-month loans just secured for over 5%, is that the ESM will buy Spanish bonds directly. According to the Guardian, Germany is prepared to use the ESM bailout fund to buy Spanish (and…
The euro crisis will move ever closer to the core
My view is that the euro zone sovereign debt crisis will end in a combination of monetisation, breakup or default. Let's review why.
Hans-Werner Sinn: Let Greece introduce Drachma but remain in the euro zone
Hans-Werner Sinn is the sometimes controversial head of Germany's Ifo Institute, A German-based center for economic studies. He has been in the news for his warnings about the Target2 system at the heart of trans-national money clearance in…
The Greeks can just print money and no one can stop them
I normally don't post at the weekend these days but I came across two links that I wanted to comment on today.
The first is from an article in German daily Die Welt about the situation in Greece. While the article's tone takes a fairly…