Tag Archives: sovereign debt

Keeping Banks (not Greece) From Failing Is the Real Eurozone Crisis

Written by Steven Hansen Over the last several weeks, JP Morgan Chase & Co (JPM)  has remained in the headlines after suffering trading losses tied to the bank’s now infamous “London Whale” with losses at  $7 billion more or less … Continue reading

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Update: Greece, Eurozone and the IMF

by Elliott Morss Earlier, I noted there were two parts to IMF Stand-By Program for Greece: austerity and increasing its competitiveness. However, by the beginning of 2012, the IMF had concluded that the austerity part of its plan for Greece … Continue reading

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Comparing U.S. and Euro Crises

by Elliott Morss Introduction The best weather forecast comes from watching the trends: if the chance of rain increases as you get closer to the day of interest, it will probably rain….  So I start by looking at what has … Continue reading

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Mario Draghi Nomination Based on Deception

by ECB Watch The Economic and Monetary Affairs (ECON) Committee was in charge of evaluating Mario Draghi’s credentials on behalf of the European Parliament. The view of the Committee, and accompanying evidence, was described in a 36 pages report released … Continue reading

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Germany Must Do It, Not China

by Michael Pettis

I have already discussed last month why I think the desperate attempts by Europe to get China and other Asian and BRIC countries to bail out the weak sovereign borrowers is absurd, but the topic has become so important in the past two weeks, at least judging by the number of calls I have received from journalists, that I thought I would reproduce a discussion I recently had in a forum among a number of China specialists (the forum is Rick Baum’s estimable ChinaPol).

We were discussing an article that recently appeared in the New York Times calling for a Chinese bailout of Europe. According to the author, Arvind Subramanian, at the Peterson Institute, “Europe is drowning and needs a lifeline.” That lifeline is effectively a bail-out package from China. Continue reading

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The Greek Revolt: Good News For Europe

by Guest Author Charles Wyplosz, Voxeu, November 4, 2011 Greek Prime Minister Papandreou made a stand this week. Even though he was backed down, this column argues that he did the EZ a favor by providing an opportunity to change … Continue reading

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EU Needs Synthetic Bonds

“Synthetic Eurobonds” will insulate the financial sector – and much of the economy – from the current debt crisis. Continue reading

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Demographics: Italy’s Ace in the Hole

Italy has an astonishing demographic bulge in the 35-49 age brackets. This is an age group that is commonly associated with the early peak earning years in developed economies. If Italy’s sovereign responsibilities can be hitched to this demographic elephant and the political and economic leadership can drive it in the correct direction, Italy can eventually get its economic act together. Continue reading

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Comparing Sovereign Ratings to Reality

For more than two years, I have advised investors to get their money out of Europe, the US, and Japan. Even though the emerging stock markets get hit whenever a new crisis appears in the West, my view has not changed. Continue reading

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There Are More Global Problems than Sovereign Debt

Europe continues to kick the can down the road with the PIIGS while the USA plays with fire on the debt ceiling. As the comment stream on my weekly summary article last week shows, there is no consensus on this complicated problem. Continue reading

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The Sovereign Debt Crisis and Currency Sovereignty

What if all goes wrong in Europe? How bad could it actually be? What’s the worst case scenario for the world economy, and do the twin debt crisis in the US and Europe have the potential to drag down China too? Continue reading

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U.S. and EU Debt Crises Compared

Subtitle:  If Soros Could Bust BOE, Greece Can Bust ECB by Guest Author Andrew Butter The recent events in Greece are reminiscent of when Soros busted the Bank of England. That crisis was caused by an artificial peg of the … Continue reading

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The Coming Economic Crisis in 2011

In 2011 sovereign debt collapse will produce the second wave of the financial crisis of 2008-20?? U.S. munis and Euroland sovereign debt will lead the first wave of the renewed crisis. Continue reading

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Eurozone – Caught in a Global Financial – Sovereign Web

The EMU struggles with a sovereign debt crisis at a time when markets are coming to view sovereign and financial debt as one and the same. Continue reading

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