crisis

A bit of gallows humour for my German-speaking readers. (Hat tip Yves Q. Smith) Source Die Eurohühner - Föhrenbergkreis Finanzwirtschaft

I was reading an interview in Handelsblatt with the EU's Olli Rehn and I found this exchange telling: Handelsblatt: Mr. Commissioner, with yesterday's decision is an EU-debt agency created which issues Euro Bonds? Olli Rehn: I will…

From his latest "Breakfast with Dave" missive. Well, I think the turbulent global events of the past few weeks underscore the reason why I have maintained a cautious investment approach for the past year, notwithstanding the…

Here's a thought regarding the European liquidity scheme. My understanding is that the ECB is legally prohibited from 'monetizing' Eurozone debt by buying it directly at auction. Therefore, in instituting the nuclear option of buying up…

Equity markets have responded well to the EU's new liquidity schemes.  But the single currency is tanking, after EUR shorts caused it to pop just after the announcement. What does this mean? Maybe the markets sense a large…

Moody's is going on a rampage regarding the sovereign debt of the Eurozone periphery. They are now reviewing Portugal and Spain for a potential ratings downgrade. That means they are threatening Greece with junk status and also warning that…

As in 2008, when global financial institutions were under attack, we are now facing a solvency crisis. This time the issue is Eurozone sovereign governments.  Make no bones about it, the EU's trillion dollar gambit has worked and a…

Subscribe to Our News Feed If you would like to receive our links in real-time please follow me at @edwardnh or go to our site’s News Feed. What Makes a Successful Currency Union? | Prospects for Development Wall Street Faces Call…

I am rushing so I will only point to the relevant pieces from Bloomberg. Perhaps the most significant thing for me will that the ECB will now be buyers of real assets (albeit that these bids will be sterilised). No. 1 from Bloomberg ...…

Highlights The US dollar and the yen are weaker across the board as the global market digest this weekend European Stabilisation Programme (see below). The scandies were the strongest performers in the G10 world (with the SEK and NOK up…