bailout

We have highlighted in bold the important bits. (We now have an analysis of the deal. See "How the latest emergency euro summit addresses the sovereign debt crisis".) Note that while the statement says in point 12 that the notional…

France appears to have backed down in the face of a German-ECB joint position that strenuously objected to the EFSF becoming a bank to borrow from the ECB. Instead, it appears that the insurance/guarantee function of the EFSF is going to…

The auxiliary objective of QE by the Fed is to weaken the USD. Herein lies the rub. Quite simply, with the recent announcement by the BOE of another round of QE worth £75 billion, with the ECB now willingly or unwillingly being forced into…

Now watch the Greek protestors turn on each other. Makes you wonder if an EU plan to be announced Wednesday is really going to solve the core issues of the crisis in the eurozone: 1) too much debt that can't be paid back; 2) debt/credit…

Nicholas Sarkozy has some sharp words about the crisis.

Equity markets are mostly positive after strong gains overnight; supported by euro zone crisis plans. EUR firms despite Spain’s rating downgrade by Moody’s; Norges Bank expected to remain on hold. Japanese and South Korean policy makers…

Europe is slowly but inexorably moving toward its own version of TARP—the U.S. “toxic asset relief program”. Rather than sub-prime mortgages and related derivatives, the toxic assets in Europe are sovereign credits, which in some cases –…

Here’s Jim Chanos on the demonstrations on Wall Street which express the anti-bailout sentiments expressed by both the Tea Party and #OccupyWallStreet. Bill Gross, Vikram Pandit, John Paulson and Michael Bloomberg all chimed in too.

Global stock continue to push higher amid choppy conditions; EuroStoxx reaches 6-week high. Slovakia’s rejection of the EFSF 2.0 is unlikely to derail ratification; EUR/USD breaches 1.38. China’s PBOC reportedly intervened it the Chinese…

Last week Moody's cut the ratings of 12 British lenders, including Royal Bank of Scotland and Lloyds Banking Group. This week the other two ratings agencies, S&P and Fitch cut the ratings of 10 Spanish lenders.