Europe

It is far from clear that the current level of Estonian CDS prices risk in in any more satisfactory way than they did at the height of the crisis, since membership of the Eurozone has brought with it both positives and negatives. The 0.28%…

The point is EMU is a political construct and unworkable in its present state. The question is whether the Europeans want to take the political steps like Eurobonds or fiscal integration that are necessary to support a stable currency…

The first is the size of the ECB bond purchases. Second, the Franco-German summit tomorrow attracts attention. Third, the market continues to pare long Swiss franc positions with the local press suggesting the SNB and government may take…

Last month I wrote an article called “The ECB is the difference” which claimed the ECB was the pivotal institution in the European sovereign debt crisis. I presented two options that the European Central Bank had in relieving pressure on…

Investors are anticipating the unravelling of the 21 July 2011 “solution” and a breakdown of the interbank-market that would throw the economy into an “immediate recession” like the one experienced after the Lehman bankruptcy. This column…

The past two weeks have seen large disruptions in the global capital markets and various policy responses. Market participants are having a difficult time getting a handle on these developments. There are three things investors should…

In the audio clip below, Ambrose Evan-Pritchard explains why he is a eurosceptic and why he believes a breakup in the eurozone is inevitable.

There are two spotlights in Europe today. France and Switzerland and their problems are intertwined. Despite denials by various French officials, the market suspects there is sufficient smoke to indicate a fire. Reuters reports that an…

In America everyone has been bellyaching about the S&P ratings downgrade like its an affront to the greatness of America. This is absolute rubbish. It’s pure denial and economic nationalism. Do you think the Germans would threaten to…

A U.S. downgrade is, in itself, almost meaningless. A nation that issues debt denominated solely in its own currency and which is in full control of its monetary policy, cannot default unwillingly. Nations default because they run out of…