Credit Writedowns

The dollar is broadly weaker as sentiment improves in the wake of an agreement on fiscal integration. European officials have struck what appears to be significant agreement; one of the costs is a new split in Europe as the UK and others…

Here’s a great chart from the BLS showing the collapse of construction employment from May 2006-10. No surprise the largest declines are in the four housing bubble states — Nevada, Arizona, Florida, and California. Stunning employment in…

Like many, we at the Global Macro Monitor believe the only solution to the European debt crisis is to write down bad debts, but we’re also realistic that it will take time because of the weak and highly levered balance sheets of many of the…

Below is the statement released by euro area governments in support of the policy approach spearheaded by Angela Merkel and Nicholas Sarkozy to deal with the European sovereign debt crisis.

Frederick Sheehan writes that the purpose of this dispatch is to dispel rumors that current front-page treaty talks have any economic meaning. The European and U.S. stock markets react with a 3% or 4% gain after vague announcements, but we…

Bill Black was on Capital Account talking to Lauren Lyster about MF Global. As usual, Capital Account delves deep into the real issues. Black never disappoints. Video below

In sum, it seems clear that the next few days will not produce a long-term solution to the European debt crisis. However, the various nations and financial institutions realize the gravity of the situation, and it seems likely that they…

Financial news links for 8 December 2011 including stories on Denmark and Danish bank capital, the European sovereign debt crisis and Spanish banks

The following letter from the German Chancellor and the French President was addressed to European Council President Herman Van Rompuy

The ECB delivered the much expected 25 bp rate cut, though the decision was not unanimous. There was some immediate disappointment by some players positioned for the outside chance of a 50 bp move. The ECB addressed the liquidity and…