sovereign debt crisis

According to the Eurogroup, "this new programme provides a comprehensive blueprint for putting the public finances and the economy of Greece back on a sustainable footing and hence for safeguarding financial stability in Greece and in the…

The just announced 2GB — Second Greece Bailout — is a misnomer. We wouldn’t exactly call a deal where private creditors reschedule all maturing bond payments for the next ten or so years into a 30-year bullet with a 50+ percent effective…

The combination of a 50 bp cut in China's required reserve ratios and anticipation that the European finance ministers sign off on the second aid package for Greece has lifted equity markets and most of the non-US dollar currencies.

There are two sets of important developments over the weekend that will influence the global capital markets. The first is in China and the second in Europe.

A friend commented to me when he saw the story that Iceland had been upgraded by Fitch, the ratings agency, that this "sure makes default look palatable". Obviously, Iceland is not out of the woods yet but their relative success says there…

The financial situation in Greece is deteriorating at a remarkable clip.

The US dollar continues to rally as uncertainty over the fate of Greece boosts demand for safety as the Greek tragedy is spinning into a farce.

The country's economy will now shrink because European policy makers fail to understand the dynamics of debt deflation.

There is plenty of room for policy error. The reasons to fear a Lehman-like event still seem compelling. European officials suggest the problem is the lack of implementation of reform and growth measures in Greece. No doubt there is an…

I am not particularly shocked or worried about the cancelled European finance ministers meeting. I still think this bailout gets done because Europe and the markets are not prepared for a disorderly default and politicians cannot risk the…