sovereign debt crisis

The contagion to Italy is a turning point in the euro zone crisis. I feel we have reached a point where the wrong decisions could mean disaster. However, I continue to hope that the Europeans will recognize how destructive the current…

Clearly, the Europeans’ dithering has had catastrophic consequences. The extend and pretend strategy has not prevented contagion from infecting the core. So we need to see a response here. In the shorter-term, the Europeans are likely to…

Tolstoy tells us in the first line of Anna Karenina that "Happy families are all alike; every unhappy family is unhappy in its own way." This is directly applicable to Europe. It is easy to tar all (growing) peripheral countries with the…

The problem is if “markets become skittish about Spain or Italy, which cannot be bailed out. So EU leaders will cut Greece loose” and indeed, there is talk about doing just that – allowing Greece to default. The policy of extend and pretend…

As Michael Lewitt says, "the interconnected nature of global financial markets render Europe's problems the world's problems. There is no longer any periphery."

Now that Italian bonds are getting crushed and contagion is clearly spreading to the core, Greece will have to be cut loose.

Multiple news sources are reporting about a secret meeting due to take place on Monday amongst European officials to discuss the deepening sovereign debt crisis that has now spread to Italy. Below is my translation of an article in German…

Edward Hugh writes of an unstable combination which make the countries in Eastern Europe highly vulnerable to both a renewed deterioration in sentiment and an external economic slowdown of the sort we could see following a disorderly Greek…

Below are S&P’s sovereign credit ratings. Highlighted are the members of the euro zone.

Europe is in a dire situation. If it doesn't address the underlying causes of the Greek crisis quickly, Europe's political project will face the same fate as communism and the US Confederacy, writes James K. Galbraith.