bailout

The prevailing view amongst euro area policy makers seems to be that saving Italy from default is necessary and that the only politically justifiable way to effect this rescue is to move to fiscal integration. All of the statements by…

European leaders will meet again on December 9th in an attempt to come up with the solution. The important point, though, is that the probable solution would call for European nations to surrender some sovereignty over fiscal policy to a…

Sean Egan explains that this downgrade came because of increasing concerns that France's banks will have to be bailed out by the government. Video below

When will we begin to reign-in the Fed and hold it accountable? And will we let the Fed bail-out Wall Street without Congressional approval of funding the next time it crashes? We need to answer these questions soon, because it is beginning…

"The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing coordinated actions to enhance their capacity to provide liquidity support to the…

I anticipate a large enough move toward limited fiscal integration in the coming days that enables the ECB to move toward a full monetisation euro area national debt by the end of the year. Interestingly enough, the initial reaction by…

Analysis: Are Americans really shopping until they drop? | Reuters One glance at the numbers for the first big weekend of holiday shopping and you might think Americans are flush with cash and spending it freely. But a deeper…

Editor’s note: the IMF musings would be difficult politically, especially in the US. And any deal for Italy would also have to involve Spain too. However, Perhaps most important, operationally, the ECB lending to the IMF, which then lends…

News links for 28 November 2011

Equities, most foreign currencies and commodities have rallied. It is not as if there has been a great deal of clarity over the weekend. There have been a number of press reports that have been suggestive, but some, like the report that the…