EMU | The Daily Capitalist

Draghi Says “Print”

FRANKFURT—European Central Bank officials signaled they are prepared to dramatically ramp up the ECB’s crisis response by renewing the central bank’s dormant government bond-purchase program.

“Within our mandate, the ECB is willing to do whatever it takes to preserve the euro and, believe me, it will be enough,” ECB President Mario Draghi said in [...]

“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in iniquity and born in sin. Bankers own the Earth. Take it away from them, but leave them the power to create [...]

Your D.I.Y. Eurozone Bulletin

“Sir, A brief word of praise for the cool head of Mariano Rajoy. As the Spanish bank bailout reached its climax over the weekend, he was faced with the toughest decision of his mandate so far. Without a second’s deliberation he opted to attend the Spain game at Euro 2012 over [...]

Greece Gives Europe A Chance

While the pieces in the Greek post-electoral puzzle begin to fall into place after weeks of nail-biting suspense, a small window of opportunity seems to open again for Europe to devise and deploy a rational plan that will keep the European Monetary Union together.

In the Greek general election on Sunday, conservative New Democracy (ND) [...]

Greek Elections Are No Panacea

Here is S&P’s view of the elections in Greece. The bottom line is that they are nonplussed. You have Germany on the one hand opposed to ameliorating the austerity conditions imposed on Greece and on the other hand what may be a leaderless Greece, depending on what kind of coalition they are able to form. [...]

Greece Will Reset; Alas, Greece

There is no real solution for Greece. They are bankrupt and their economic foundation is rotten. They have bred a society that wants generous benefits on the one hand, and on the other, cynical producers who don’t want to pay taxes. They are similar to Eastern Bloc countries post-Soviet collapse. They [...]

François Hollande, The New French President

This article comes from the City Journal, a publication of the Manhattan Institute. They write about many interesting things mostly about urbanism. They come at things from a mostly conservative, free market viewpoint (Bill Kristol on on their board). This article gives a perceptive look at French politics and what Hollande’s election means to Europe. [...]

European Bank Funding Improved

From DeutscheBank Research

April 23, 2012

Funding conditions for European banks have improved considerably since end-2011. In Q1, EU banks were able to issue a total of EUR 154 bn in senior and covered bonds – compared with only EUR 85 bn in the whole of H2 2011. Still, issuance was down 35% yoy; the [...]

Open Letter To Steve Keen, Who Says Stimulus Is Necessary

Dear Professor Keen:

I am a monetary scientist and a fan of some of your work. I admire the courage it took for you to call the Australian housing crisis as early as you did, and to make a bet that you would be right. But I came across this video, wherein you say:

“…when [...]

Eurozone: No “Exit”; China: Aims At RMB Internationalization

TM@DB Research

EMU Divergence

Markets and journalists are discussing (once again) the one-size-fits-all problem of ECB policy, with the Bundesbank questioning the generous provision of liquidity and its reignition of the exit debate pouring oil into the fire.

Yes, the economic paths for the peripherals are severely uphill, but reforms being implemented should allow for [...]

European Banks: Showing The Strains

With the Italian latecomers finally reporting last week, all the top EU banks have now reported FY 2011 results, which overall were nothing to write home about. For the first time in at least a decade, all major revenue components (and thus also total revenues) declined YoY. While the decrease is still modest (NII -0.5%, fees [...]