sovereign debt crisis

Marshall Auerback suggests the Troika's goal in the Greek deal is to make the deal so miserable for the Greek people that the Spanish, Portuguese, Irish and Italians don't even begin to think of trying to get a similar haircut on their…

Concerns over the Greek deal have seen the dollar move higher against most of the majors and EMs EuroStoxx 600 is off its lows but down 0.4%, bank shares down 1.7%; S&P 500 futures down 0.6% Safe have securities are rallying with…

Given market positioning and the anticipated long-term repo operation at the end of the month, it is tempting to see this move above $1.3250 as a breakout. Is it a breakout?

The decision for Europe’s bosses is this: they must ultimately confront the consequences of their policy choices. They can destroy the eurozone by continuing with the same failed mix of policies or by salvaging it by adding what has been…

Ahead of the next LTRO at the end of the month, Spanish and Italian bonds may begin consolidating after the large moves seen over the past month. The scope for Italian out performance in the month ahead appears somewhat more limited than…

Here's a good video performance by Marshall Auerback on BNN's Business Day program. Marshall thinks the Greek default deal is actually a relatively good one. But sees a Portuguese default after the Greek default as a real possibility and…

I was thinking about that last post I wrote on the euro zone and regulatory forbearance. They say a picture is worth a thousand words. So here's a picture that captures my thinking pretty well.

Even if the private sector participation sufficiently high, will it be enough to put Greece's debt on a sustainable path? This seems unlikely and there is increasing risk that the ECB forgoes getting anything but its initial investment…

This is me thinking out loud about how regulatory forbearance in the S&L crisis mirrors today's policy path.

The headline story in the Financial Times today is that "Banks set to double crisis loans from the ECB". The report says that "several" large banks from the euro zone told the FT that they "could double or triple" their takes at the LTRO.