bailout

This is probably one of the most upbeat posts I have written on Europe in quite a while. Originally, I intended to write this post as a short blurb discussing Angela Merkel's recent European proposals but there are a few loose threads I…

The latest information out of Europe comes via the Financial Times where Miles Johnson writes that the Spanish are geared up to sign a Memorandum of Understanding with the Troika. Other countries are holding things up, according to this…

Mired in the worst recession since the 1970s, Portugal's governing coalition is going to turn up the austerity dial even higher. The goal is to reduce the Portuguese deficit to 4.5% of GDP in 2013 in order to be in a position to switch out…

According to a questionnaire given by the leftist German party "Die Linke", German pensioners have seen a significant erosion of their purchasing power over the last twelve years. Average pension payments this year after deducting all…

In Europe, Spain is expected to formally apply for a Troika bailout in November. Despite the Rajoy's government's denials that it has not sought a bailout, Rajoy and his ministers have never specifically said that they refused to consider a…

Do you remember when Europe used to say the IMF would get involved in Europe over the euro's dead body? Well I certainly do. Back before Greece got its bailout deathwish, it wasn't even clear there would be a bailout, let alone one with…

I actually thought about doing the daily on the Wells Fargo fraud 'without fraudsters' meme because it really captures the problem with regulation of our financial system but that is a policy issue. Instead, I want to focus on a macro…

The following is the rationale for the ratings action Standard and Poor's took earlier today in downgrading the sovereign debt ratings of Spain Overview     -- The deepening economic recession is limiting the Spanish government's policy…

Spiegel, a widely-read German magazine, has published a trilogy of articles on inflation in German that it has also translated into English. The theme is “How Monetary Policy Threatens Savings” and I see this as a must-read for those…

The Financial Times is reporting that Portugal is likely to need an extension of the three-year bailout plan it received in 2010. This is a disaster for the euro zone and I am writing this post to explain why. The most pressing issue is…