Europe

Now that we have had a chance to digest the information from last night, there are a number of developments to report on the Greek situation which are relevant to unravelling likely scenarios going forward. Here is my synopsis of what has…

European stocks rebounding amid talks of Greek government collapse, potential referendum withdrawal. ECB likely to remain on hold but signal December rate cut; US service ISM key data report today. EM focus on potential for China easing…

This move puts a whole train of future moves in motion, in my view. The Greek people will be apoplectic at this tactic. They will reject the bailout in a referendum out of spite. Greece and its banks will be insolvent. Meanwhile, the run on…

Liquidity crises are always solvency crises. The question is about determining which company, nation, or debtor is insolvent in a world of incomplete information. This leads to panic and a wider liquidity crisis that stresses the balance…

Sheila Bair argues that Europe's banks are undercapitalised due in large part to regulatory capture.

Europe has an enormous productive capacity, Greece included. Debt introduces a money distribution problem that becomes a flashpoint during periods of economic weakness because the inability of large debtors to pay imperils both the debtor,…

The currency may well be undervalued, but a significant rise in the RMB, especially if it is countered domestically by an increase in credit at lower real rates, might actually make the global imbalances worse and, more worryingly, cause…

Japan and the US, as the two largest economies with high deficits, also have the largest gross financing need, ahead of all of the euro zone periphery, Belgium and France. But they are sovereign in their currencies and have therefore not…

Market sentiment modestly improves after most Asian stocks fall ; EFSF to delay €3bln bond sale. Greek cabinet endorsed referendum plan overnight; aims to win Friday’s confidence vote. FOMC unlikely to announce further asset purchases,…

What people don’t realize is that what happened in Iceland has been used as a test case for what’s happening in Greece and what’s happening in Europe, and maybe what happens in the United States