sovereign debt crisis

We have seen how German policy experts like Otmar Issing have argued against Euro Bonds. Now, we get a cogent argument in favour of thee debt instruments via Wolfgang Munchau of Eurointelligence. Munchau recently penned an FT column making…

The thinking behind Eurobonds is that a pan-euro zone debt instrument could be used as a release valve for liquidity issues, allowing the truly insolvent to restructure their state level debt if necessary, without creating contagion. The…

I have been in meetings with Very Serious Texas Politicians where secession was earnestly discussed 15 years ago. Do I think that could happen? No. The Fed will never choose hyperinflation, and I do not think you can find 60 Senators to…

European officials must have known they were going to disappoint the market with the decision to simply postpone draining liquidity. The firewall around Greece failed. The firewall around Ireland has failed. The politicians have dropped…

Market participants are already making their bets that the ECB will "print money". Below John Brynjolfsson tells Bloomberg why he thinks the ECB will monetise the sovereign debt problem. His firm is selling core Europe and buying the…

There ain't nothing as good as a good short covering/melt-up rally day. The market has been in a flux the past weeks, but today's move proves, I think, that the upside surprise is much stronger than the downside and that the equity still…

Link categoreis for today include the non-TARP bailouts and more on the Fed's lending program plus the European debt crisis, and WikiLeaks.

The IMF total contribution to the European rescue fund is not a solid one. That is, the IMF responds to country-by-country requests for aid, not to regions. Thus, the IMF really does not have EUR250 bln set aside just for Europe.…

Politics will not get nearly as crazy or as radicalized as they did in the 1930s. There are much more robust mechanisms today for transferring and sharing adjustment costs. But it is hard to imagine that the kinds of disruptive political…

A few weeks ago, when writing about the Irish debt crisis, I finished a post saying: Eventually, people may come around to Evans-Pritchard’s view: the only way out of this is via the ECB printing money and monetizing the periphery’s…