European breakup

Right now Syriza is neck and neck with New Democracy in Greece for the upcoming elections in Greece. So it is worthwhile to take a look at what Syriza is actually saying and what the consequences of their program would be. I have a copy of…

The events surrounding Spain have caused me to throw in the towel on European policy makers. It is clear to me that the events on the ground are moving too quickly for them to adjust their policy stances enough to prevent more catastrophic…

Nigel Farage isn't impressed by the Spanish bailout. Take a look

From a game theory perspective, the moment one of the 17 eurozone member countries realises it would be better off outside the eurozone, it has everything to gain from being the first mover. We have all been led to believe that a break-up…

The eurozone’s architects failed to follow through with the logic of a political union. Nobody cares about “trade imbalances” in the Canadian confederation. And nobody would care if Alberta, for example, were to run perpetual trade…

Editor's Note: The following is the text of recent remarks on the European sovereign debt crisis made by legendary investor George Soros at the Festival of Economics in Trento, Italy.

The Target2 problem is really a manifestation of an accelerating bank run. I have said many times, this is my major concern, the bank runs and the resulting shrinking credit and likely deadweight loss that accompanies them.

Here's the video from last night's capital Account with Lauren Lyster and Demetri Kofinas. Everyone keeps acting like this crisis is about to boil over and take the world economy with it. It certainly could. More likely though, we will…

The Financial Times has gone through the very useful exercise of creating a decision tree on what a Greek exit from the euro zone entails. I think the Europeans are now actively preparing for a Grexit because to not do so would be folly.…

As always, I have a lot of links on Monday. Three or four stories have dominated the news in each market for the past week. In the US, it is about either JPMorgan Chase's escalating losses, Facebook's IPO or the general aimlessness of the…