Europe

The following is an outline for a proposed new Greek government bond issue to provide all required medium term euro funding for Greece on very attractive terms. The new bond issue includes an addition to the default provisions that…

Short of a fiscal union, there are other measures which the Greeks could adopt to make their bonds more attractive to external investors, thereby preventing the markets shutting the country down and refusing to extend further credit to a…

As had been anticipated, the Greek parliament has approved the austerity measures along party lines. The parliament will vote on the implementation bill tomorrow. This may be a bit stickier, but it too is likely to pass. Assuming so,…

Dollar is mostly weaker against the majors into Greek austerity vote; global equities rally strongly. The euro remains firm near $1.444 ahead of vote; momentum likely to continue but hurdles remain. Rumors of a potential Chinese rate hike…

I want to take a look at the latest news concerning the Greek situation using the political framework I laid out earlier in the month.On the whole, things are proceeding pretty much as anticipated.

Slovenia’s problems highlights the fundamental deflationary bias of the euro system and all fixed exchange rate systems more generally.

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.…

There has been a net withdrawal from US money market funds and it appears that the funds have moved to strictly US Treasury or US high grade money market funds. Banks appear to be responding by hedging/securing funding through yen swaps. In…

Greece is now getting a second bailout and the Greek government is attempting to get the austerity measures upon which the bailout is conditioned passed through its legislature. I think largely the same issues still apply as in May.…

Randall Wray takes a bearish view of the Greek situation, the capital position of European banks and the future of the Euro.