ECB

The contagion to Italy is a turning point in the euro zone crisis. I feel we have reached a point where the wrong decisions could mean disaster. However, I continue to hope that the Europeans will recognize how destructive the current…

Clearly, the Europeans’ dithering has had catastrophic consequences. The extend and pretend strategy has not prevented contagion from infecting the core. So we need to see a response here. In the shorter-term, the Europeans are likely to…

As Michael Lewitt says, "the interconnected nature of global financial markets render Europe's problems the world's problems. There is no longer any periphery."

The question is not whether Greece will default but what will happen once it has. If Greece defaults but stays in the euro, not only will it not solve the underlying lack of competitiveness, but markets will immediately turn their attention…

If the EU/IMF does this for Greece why not Ireland and Portugal? It is difficult to envision Ireland being able to go back to the markets next year as originally intended. Therefore, it too will likely require another round of assistance.…

Only a referendum can commit the Greek government to repay new debts imposed under austerity. Only a referendum can prevent property that is privatized from being re-nationalized. Such a transfer is not legitimate under commonly accepted…

While I acknowledge the real fears that central bankers have about the impact of a restructuring, this political dithering is making matters considerably worse. Clearly, burden sharing is needed and that means bondholders will have to take…

Karl Whelan finds that a recent analysis by Hans-Werner Sinn on an alleged ECB bailout is incorrect. Willem Buiter is now out with a commentary on the same issue corroborating Whelan’s view. Below are the bullet points he highlights in his…

In a recent column at VoxEU , Hans Werner Sinn of the prestigious Institute for Economic Research claims that the German Bundesbank is effectively propping up banks across the Eurozone’s periphery. He adds that doing this risks a major…

Dollar mixed vs. majors ahead of ECB decision; signal for 25 bp hike in July widely expected. Negotiations on second Greece aid program continue; talks could drag on for weeks. NZD outperforms on hawkish RBNZ statement, AUD underperforms on…