Category: Eurozone Debt Crisis
The analysis published under this category are as follows.
Monday, June 18, 2012
Greece Crisis Through The Looking Glass / Politics / Eurozone Debt Crisis
By: Ian_R_Campbell
Why Read: Because in some (and perhaps many) respects Greece can now be seen as a small, and hence comparatively easily understood, 'microcosm' of what may happen in other developed countries going forward.
Featured Article: Multiple articles and other media last evening and this morning have reported and discussed yesterday's New Democracy Party victory in yesterday's Greek election.
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Monday, June 18, 2012
1930s: Europe Back To The Future? / Interest-Rates / Eurozone Debt Crisis
By: DK_Matai
The fateful day of elections in Greece on 17th June has now arrived. The impact of this Greek ballot will be felt around the world. Beware the rise of political extremism. More than two thousand years ago, Plato -- the influential Greek philosopher -- said, “Dictatorship naturally arises out of democracy, and the most aggravated form of tyranny and slavery out of the most extreme liberty.” Europe's fast-escalating crisis is now more dangerous than Lehman's collapse in 2008, threatening to tip the world into a 1930s-style Second Great Depression unless global leaders work together to take dramatic action.
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Monday, June 18, 2012
Eurozone Debt Crisis Bang! Moment is Here / Interest-Rates / Eurozone Debt Crisis
By: John_Mauldin
"Perhaps more than anything else, failure to recognize the precariousness and fickleness of confidence – especially in cases in which large short-term debts need to be rolled over continuously – is the key factor that gives rise to the this-time-is-different syndrome. Highly indebted governments, banks, or corporations can seem to be merrily rolling along for an extended period, when bang – confidence collapses, lenders disappear, and a crisis hits.
Monday, June 18, 2012
Euro-zone Insolvency Call to Arms for Central Banks / Interest-Rates / Eurozone Debt Crisis
By: Alasdair_Macleod
The rate at which the majority of the eurozone is descending into insolvency is accelerating. The rescue package for Spanish banks, which appears to have been provisionally set at a figure designed to impress the markets, hardly even produced a dead-cat bounce. All it has achieved is to draw attention yet again to the helplessness of the authorities in dealing with multiple debt-traps. So what is the answer?
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Friday, June 15, 2012
EU’s Real Agenda is “Lie Until You Are About to Die” / Politics / Eurozone Debt Crisis
By: Graham_Summers
The big news that the markets are attempting to digest this week is the €100 billion Spanish bailout. This action and the upcoming Fed FOMC meeting on June 19-20 will dictate the market’s action over the next two weeks and possibly for the remainder of the year.
Friday, June 15, 2012
Greece Sunday Election Bigger Than Romney/Obama / Politics / Eurozone Debt Crisis
By: Money_Morning
Martin Hutchinson writes:
What happens this Sunday, June 17 , may be the trigger for a final resolution of the Eurozone debt crisis.
Now I understand that you probably don't follow Greek elections. But this is one you'll want to keep an eye on. At the moment, it dwarfs the contest between Mitt Romney and President Barack Obama.
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Thursday, June 14, 2012
How to Protect yourself from Spailout Euro Collapse / Interest-Rates / Eurozone Debt Crisis
By: Money_Morning
Keith Fitz-Gerald writes:
It's unlikely the euro will survive what I'm calling the Spailout... meaning, the bailout of Spain, and the contagion to Italy, etc. Believe me, you're going to be seeing and hearing this non-stop in the media for quite some time. And fear will be running rampant as a result.
I'm going to explain everything about the Spanish situation in a moment - probably more than most people care to know - but first, let me share something with you that's worth your attention.
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Thursday, June 14, 2012
Gold, Silver and the Rolling Financial Crisis / Stock-Markets / Eurozone Debt Crisis
By: Jesse
"Let me make it clear straight away – the lies, corruption, cowardice and greed of Spanish bankers and government officials is nothing special. What is happening in Spain now, reminds me of Northern Rock in the UK, Hypo in Germany and CountryWide in the US. So please do not think that I dislike Spain or of the ordinary people of Spain. The people I detest in Spain are the same people I detest in Britain and every country: The Cabal of corrupt Bankers and Political parasites.
Thursday, June 14, 2012
Spain Bailout Big Lie, How Can a Non-Existent Entity Bailout Spain Or Anyone Else? / Politics / Eurozone Debt Crisis
By: Graham_Summers
Spain’s Bailout is one big lie.
I know, I know… Spain is “saved” thanks to a €100 billion bailout.
But no one is asking just where this money will come from?
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Thursday, June 14, 2012
Capital Controls, Border Controls and Bank Freezes: European Union Prepares For Emergency / Politics / Eurozone Debt Crisis
By: DK_Matai
Bank runs in Greece are now in full swing. Withdrawals from Greek banks ahead of the weekend elections have spiked to more than 800 million euros per day. Is the Greek exit or "Grexit" now imminent? If so, what is the European Union going to do about it?
Wednesday, June 13, 2012
Spain Bank Bailout isn’t Euro-zone Debt Crisis Solution / Interest-Rates / Eurozone Debt Crisis
By: Michael_Pento
It was announced this weekend that Spain will receive $125 billion (100 billion Euros) to recapitalize their banking system. The money for the bailout will be channeled through the Fund for Orderly Bank Restructuring (FROB), whose funds count towards public debt.Read full article... Read full article...
Wednesday, June 13, 2012
Why the Spain Bailout Package Won't Work / Interest-Rates / Eurozone Debt Crisis
By: Money_Morning
Diane Alter writes:
The pricey Spain bailout package convinced markets it could fix the Eurozone debt crisis for only a moment Monday, before reality set in that the plan was far from ideal.
Following the announcement of a $126 billion (100 billion euro) bank rescue package, markets rose briefly. But the relief was short-lived as investors hastily refocused and remembered that the struggling Eurozone still faces a number of key obstacles.
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Wednesday, June 13, 2012
Euro-zone Slow Motion Bank Run, Spain Bailout / Politics / Eurozone Debt Crisis
By: Mike_Whitney
“The burden of recapitalizing insolvent banks or loss-making acquisitions of solvent banks will fall on Spanish citizens.”
– Karl Whelan, economist at University College, Dublin.
Before EU finance ministers approve the 100 billion euro bailout for Spain, they might want to ask themselves one question: Will it really help?
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Tuesday, June 12, 2012
Spain, Debt and Sovereignty / Politics / Eurozone Debt Crisis
By: STRATFOR
Eurozone countries on June 9 agreed to lend Spain up to 100 billion euros ($125 billion) to stabilize the Spanish banking system. Because the bailout dealt with Spain's financial sector directly rather than involving the country's sovereign debt, Madrid did not face the kind of demands for more onerous austerity measures in exchange for the loan that have led to political instability in countries such as Greece.
Tuesday, June 12, 2012
Spain €100 billion Bank Bailout Necessary But Not Sufficient, Italy Federalism, Debt Traps and Competition / Interest-Rates / Eurozone Debt Crisis
By: John_Mauldin
We woke up this weekend to a €100 billion "rescue" of Spanish banks, and the initial reaction of the market was relief. But did we not just see this movie, but with Greek subtitles rather than Spanish? Was this another of those "necessary but not sufficient" plot lines that Europe is so good at? Kick the can down the road and hope for a happy ending?
Pardon my skepticism, but I see numerous problems. In the first place, €100 billion will not be enough. While the current estimates are closer to €40 billion (if you ask the Spaniards), JP Morgan estimates it will be more like €350 billion. Others estimate more or less, but €100 billion is decidedly optimistic. Even the Spanish authorities are acknowledging that there is another 35% downside for the housing market, which is the main source of the losses. It appears that has NOT been included in the guesstimates.
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Monday, June 11, 2012
Papandreou's Final Humiliation? Says Greece Will Stay in Euro Zone / Politics / Eurozone Debt Crisis
By: Bloomberg
Former Greek Prime Minister George Papandreou spoke with Bloomberg TV's Sara Eisen and said that Greece has "a few weeks" before its government runs out of money and that this is a "make or break" period.
Papandreou went on to say "I did all that I could do" and that the "personal costs" were "worth it" to serve his country.
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Sunday, June 10, 2012
Spain No Such Thing as Bailout Lite, €30 Billion Needed? Now €100 Billion; Contagion of Economic Idiocy / Interest-Rates / Eurozone Debt Crisis
By: Mike_Shedlock
A few days ago Spain was purportedly going to need another €30 billion to €70 billion to recapitalize Spanish banks. I suggested the amount would be at least triple that and it did not take long to do so.
Yahoo! Finance reports Spanish bailout could reach 100 billion euros
Read full article... Read full article...A bailout for Spain's teetering banks, once requested by Madrid, could amount to as much as 100 billion euros, two senior EU sources told Reuters on Saturday.
Sunday, June 10, 2012
Greece is A Dysfunctional Nation, A Quadrillion Here, A Quadrillion There / Interest-Rates / Eurozone Debt Crisis
By: John_Mauldin
dysfunctional [dɪsˈfʌŋkʃənəl] adj
1. (Medicine) Med (of an organ or part) not functioning normally
2. (especially of a family) characterized by a breakdown of normal or beneficial relationships between members of the group
European leaders launched the euro project in the last century as an experiment to see whether political hope could become economic reality. What they have done is create one of the most dysfunctional economic systems in history. And the distortions inherent in that system are now playing out in an increasingly dysfunctional social order. Today we look at some rather disturbing recent events and wonder about the actual costs of that experiment. What type of "therapy" will be needed to treat the dysfunctional family that Europe has become? And maybe I'll throw in a "fun" item to finish with, so let's get started.
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Friday, June 08, 2012
Bankruptia Spain To Seek Imminent German Bailout to Limit Greece Election Contagion / Interest-Rates / Eurozone Debt Crisis
By: Nadeem_Walayat
Reuters has let the cat out of the bag Friday concerning secret panic driven talks concerning an imminent bailout of Spain's bankrupt banks, possibly as early as Saturday afternoon. Which follows fast on the heels of the credit ratings agency Fitch downgrading of Spanish Government bonds to just above junk status less than 2 weeks away from the contagion inducing Greek elections. All of which were contributing to what amounts to a state of Financial Armageddon in progress as a chain reaction of detonations takes place across the Euro-zone.
Friday, June 08, 2012
Financial Collapse At Hand: When is "Sooner or Later"? / Interest-Rates / Eurozone Debt Crisis
By: Paul_Craig_Roberts
Ever since the beginning of the financial crisis and Quantitative Easing, the question has been before us: How can the Federal Reserve maintain zero interest rates for banks and negative real interest rates for savers and bond holders when the US government is adding $1.5 trillion to the national debt every year via its budget deficits? Not long ago the Fed announced that it was going to continue this policy for another 2 or 3 years. Indeed, the Fed is locked into the policy. Without the artificially low interest rates, the debt service on the national debt would be so large that it would raise questions about the US Treasury’s credit rating and the viability of the dollar, and the trillions of dollars in Interest Rate Swaps and other derivatives would come unglued.