Spain: The recession may be ending but the crisis continues
What follows is an interview I did over the summer with the Madrid based publication The Local.
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Browsing Tag
crisis
Yield Bubble Intact and Inflating
Emerging economies are reeling as rising US bond yields are squeezing the most vulnerable and funding intensive parts of the market. But the squeeze in EM yields is merely an hors d'oeuvre to what is likely waiting in the wings.
Chart of the day: Emerging Market Currencies and Local Currency Debt
The X-axis is the change in the spot currencies against the dollar since late May. The Y-axis is the change in the local 5-year debt. It is a useful way to conceptualize what has happened from a total return perspective. Korea, Czech,…
Raghuram Rajan to face impossible choices as India’s new central banker
India is about to get a new new central bank governor, Raghuram Rajan, a University of Chicago economist with outstanding academic credentials. He is expected to start this Thursday, smack in the middle of a financial crisis the likes of…
India: rupee in freefall, stagflation setting in, risks of sovereign downgrade and investor panic…
This is beginning to sound like a broken record, but India's currency has come under severe pressure - again. India's central bank, the RBI, seems to have completely lost control over the rupee. The currency broke through 67 to the dollar…
Central bankers, unsustainable Imbalances and the crisis in emerging markets
The problem in a nutshell is that the U.S. is the world's reserve currency. And so, other countries are forced to adhere to Fed dictates in a liquidity crisis because everyone is hoarding dollars, trying to maintain their supply of…
Fed to QE-Exit Whacked Emerging Markets: Drop Dead
The latest Fed confab at Jackson Hole is demonstrating that central bankers were so keen to avoid taking much blame for the global financial crisis that they also failed to learn critical lessons from it. That lapse in turn is directly…
Anatomy of a bank run
In my last post, I argued that enforced separation of investment banking and commercial banking would not eliminate the need to provide central bank support to investment banks and other non-banks in the event of another Lehman-type…
The housing appraisers warned us about the crisis but we didn’t listen
The appraisers’ petition began in 2000 and was public. When the regulators and prosecutors did nothing in response to the appraisers’ warning the appraisers delivered it to government officials to ensure that no one could say they were not…
Merkel: Germany ‘too weak to withstand more stimulus’
I have been saying for some time now that Germany is concerned about its own public finances. So it is good to see that Angela Merkel is now confirming this. According to the Telegraph, Merkel believes that Germany simply doesn't have the…