bailout

Financial news links for 3 January 2012. I posted this first link on twitter yesterday afternoon and it got a ton of retweets. I have seen a lot of people link out to it. Bottom line: the concept that bankruptcy is part and parcel of…

Investment advisor John Mauldin explains his attitude towards austerity measures; a return of the gold standard; the euro crisis; and the willingness to bailout everyone that makes capitalism and monetary systems stop working.

Listen: they can go kicking and screaming all they want to but, unless they’re on board to with ending the euro, it seems likely that the rich nations in Northern Europe will end up bailing out their poorer brethren. Whether they call it a…

Through all of this hand wrangling, the Euro remains fixed at the same value as it started with in January, roughly $1.30. If open interest information from our futures markets are any valid indication, currency speculators, both commercial…

Congress should immediately call Chairman Bernanke in for testimony on the veracity of the Fed’s response to the Bloomberg report. It should demand a comprehensive accounting for all the Fed’s commitments, by institution that benefitted.…

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…

We could be wrong on this one and may have too much faith in the Eurocrats, but think of consequences if we are wrong? If the EU fails here, it will 1931 all over again and will put the “Great” in this rolling depression/recession.…

Germany and France are pushing for treaty changes. Under normal conditions treaty changes are a long drawn out process, subject to horse trading and vulnerable to domestic political considerations and the outcome is far from guaranteed.…

The “troika” – Italian, Spanish, and French bond yields - is acting pretty well even after the S&P downgrade. Italy is under 6 percent and that is what matters. We sense there will be tremendous pressure on the shorts and equity risk…

What must the summit produce in order to address these and help solve the Europe crisis once and for all? The answer is very much in keeping with Wolfgang Munchau’s excellent take in his column in yesterday’s FT. Hopes have coalesced around…