sovereign debt crisis

Let’s not get bogged down in numbers. The EFSF could have 440 billion euros behind, 1 trillion, 2 trillion, even 10 trillion euros, but it all comes back to the funding sources. The French are right: it makes no sense to implement this…

Controversial Italian Prime Minister Berlusconi appears to have finally capitulated to international and domestic pressure. Press reports indicate that he has agreed to step down by January. This in turn will bring forward elections,…

In China’s fight against the United States as an alleged currency manipulator, it is now trying to draw in the embattled euro zone. Agence France Press says that the Chinese are willing to contribute to the leveraged EFSF now set to be…

Dollar largely softer vs. majors as markets await outcome of the European summit today. Signs point to a “bare minimum” response from European policy-makers; euro upside seems limited. EM currencies mixed; TRY outperforming on apparent…

Tomorrow's EU Summit is the markets main focus. The key issue is whether European officials can finally provide closure to the two year old debt crisis and deliver the "comprehensive" and "decisive" package they have repeatedly promised. We…

European stocks edge to a two-month high ahead of tomorrow’s summit; USD mostly softer ahead of open. There is still room for the EZ policy makers to disappoint tomorrow; S&P 500 approaching 200dma. BoC likely to remain on hold but…

Italy argues that the ECB has made the crisis worse because it refuses to stand at the ready as a lender of last resort like other central banks, an argument I have also made. However, the Italians suggest that the EU is facing a liquidity…

This video of German Chancellor Angela Merkel and French President Nicolas Sarkozy has stirred a sense of nationalistic pride in Italy. Everyone seems to be talking about it.

France appears to have backed down in the face of a German-ECB joint position that strenuously objected to the EFSF becoming a bank to borrow from the ECB. Instead, it appears that the insurance/guarantee function of the EFSF is going to…

On the Max Keiser show, I said that Greece has been sent to debtor's prison. The goal is for creditors to Greece to get as much out of the Greek government as possible before they default.