by Elliott Morss The Eurozone situation was bad enough 6 months ago. It is getting worse. Why? Because none of the key players are addressing the fundamental problem the Eurozone is facing: the weak sisters (Greece, Italy, Portugal and Spain) are not… more »

by Guest Author Marshall Auerback News stories continue to suggest that Greece once again appears on the verge of reaching a deal with its private sector creditors on how much of a loss they would be willing to accept on their bond holdings. The latest… more »

by Dirk EhntsI stole the above headline from the tageszeitung (pdf), where it reads Merkel rettet Euro-Krise. Kevin O’Rourke has an excellent article on the results at Project Syndicate. Here is his conclusion: This summit should have proposed institutional changes to avert such a scenario. But if such changes are politically impossible, and the euro is doomed, then a speedy death is preferable to a prolonged and painful demise. A euro zone collapse in the immediate future would be widely perceived as a catastrophe, which should at least serve as a source of hope for the future. But if it collapses after several years of perverse macroeconomic policies required by countries’ treaty obligations, the end, when it comes, will be regarded not as a calamity, but as a liberation. And that really would be worse. more »

In Italy we have a saying: “Occhio di straniero, occhio disparviero”: the foreigner has hawk’s eyes. Let me congratulate with youfor your synthesis: it’s right to the point. I’ll try to add somethingfrom my vantage point inside Europe. (1) The o… more »

by Marshall Auerbach, New Economic Perspectives Editor’s Note: This was written December 5 before the latest Eurozone summit. Readers will find not much has changed as a result of the new agreement. Another week to go before the euro blows up… more »