The European monetary family is in crisis. It meets on March 25th and 26th to discuss whether to kick Greece off the island (survivor style) or to intervene and save the prodigal son. The problem, from a German perspective, is that Europe is full of prodigal children. To save Greece means to save the rest of the economies troubled by rising public debt-to-GDP ratios.
March 19th, 2010 | Dan Denning | 0 comments | ContinuedEurope
Commentary on European economics, politics and society by your Daily Reckoning editors in Melbourne, Australia. Still haven’t subscribed to the Daily Reckoning? What are you waiting for… sign up here, it’s free!
A chronological listing of articles is below.
The Great Correction: Awaiting Bailouts that Will Never Come
But the deep trends continue. The government grows…and heads towards bankruptcy. Most developed nations are running huge deficits in their public accounts.
March 17th, 2010 | Bill Bonner | 11 comments | Continued
PIGS and the Smell of Bacon
Debt distressed nations being called PIGS, countries smelling of bacon, and dubious political spending referred to as pork. What’s next?
March 13th, 2010 | Nickolai Hubble | 1 comment | Continued
Federal Reserve Increases Rate at Which Banks Can Borrow From It
In a debt drugged, liquidity obsessed world, a change in interest rates can go from affecting profitability to affecting solvency very quickly. And it’s not just the banks that are high on cheap credit.
February 27th, 2010 | Nickolai Hubble | 0 comments | Continued
Capital Flight Out of Greece
An article in the UK Telegraph stated that Greece’s Deputy PM had lashed out at Germany over war-time atrocities and accused Italy of cooking its books. This seems like a fairly dumb thing to do when you are hoping that Germany might hand over some cash to help you out of the hole you’ve dug yourself.
February 26th, 2010 | Murray Dawes | 2 comments | Continued
The Euro is a Symptom of Centralisation
But whether he’s right about Greece or not remains to be seen. Stock markets are meandering through February as if no clear signal about the pending sovereign debt crisis has been issued. Everyone seems to believe – assuming they are thinking at all – that Europe will get its fiscal house in order…
February 23rd, 2010 | Dan Denning | 1 comment | Continued
Does Greece 2010 = Austria 1931?
Being part of the Eurozone, Greece does not have the option to devalue. Granted, such a policy is not a panacea. Interest rates would skyrocket and asset prices plunge.
February 18th, 2010 | Greg Canavan | 1 comment | Continued
Trichet Should Tell Greeks to Drop Dead
Greek finance minister Papaconstantinou promised spending cuts that would reduce the deficit down to the allowable 3% level within 2 years. But could he deliver?
February 15th, 2010 | Bill Bonner | 1 comment | Continued
Geithner to Explain to Congress How US Bailed Out AIG
Of course, the Secretary of the Treasury will have answers. He’s been rehearsing them for weeks. He’ll explain that the integrity of the system was at stake…etc…etc… Blah…blah.
January 28th, 2010 | Bill Bonner | 0 comments | Continued
Renting Apartments in Paris
Americans who used to have their own pied a terre in the city are now settling for ‘fractionals.’ Instead of owning the whole apartment, they own a share of it.
January 27th, 2010 | Bill Bonner | 0 comments | Continued