sovereign debt crisis

My friend Lars Schall sent me this link. I think you have to put this in context by looking at what Der Spiegel was saying about a Greek exit. What is clear is that the taboo that Angela Merkel broke in responding to the proposed Greek…

Well folks, we live in a creditor friendly-world. And the taxpayers are always going to be the ones taking the hit unless the credit system collapses under its own weight. That’s what Omid Malekan seems to think too. His video below…

This sounds like hearsay to me, but I wouldn’t be telling you about it if I didn’t believe it was credible.

Paul Krugman show he understands the sovereign debt crisis.

Jim Grant spoke to Bloomberg News earlier today about the sovereign debt crisis. He says the fundamental question is "What will the European Central Bank do next?" His answer: they will "print money". He believes that all of the central…

As for Italy itself, the country runs a primary fiscal surplus. As George Soros has noted: “Italy is indebted, but it isn’t insolvent.” Its fiscal deficit to GDP ratio is 60% of the OECD average. It is less than the euro area average. Its…

Germans really are sceptical of the euro and many miss the days of the Deutsche Mark. I think Merkel is trying to make the case for why the German people have never been given a direct vote on any major euro area decision. No one wants…

We see no easy way out of the current turmoil. The result of enough fiscal austerity to relieve the debt pressures is a severe recession or depression. Historically, independent nations undergoing austerity have accompanied the policy with…

If the Federal Reserve were to load up on Italian bonds, the Fed would be exposed to default on foreign currency assets. If Italy defaults, then the Fed is on the hook. Offic

When you run through the scenarios, really the only medium term solution that makes sense is to allow the ECB to put a permanent bid on Italian and Spanish bonds. The problem with such a move is that it reduces pressure on those governments…