“Working at my desk today was somewhat surreal. Global risk markets were closing out a dreadful week. Newswires were full of disconcerting articles – J.P. Morgan, Greece, Spain, Italy, China, etc. Meanwhile, CNBC was in the midst of blanket coverage of the Facebook initial public offering. Mark Zuckerberg rang the bell to open NASDAQ [...]
We need to follow Greece because their default and withdrawal from the eurozone would set off major consequences to the European Monetary Union, and thus the EU, that are unforeseeable. A default would impact Greek banks who are major lenders to the government, as well as major German, French, and Belgian banks. These defaults would [...]
“Under the circumstances, discussions with Greece and the official sector are paused for reflection on the benefits of a voluntary approach.” Debt talks “have not produced a constructive response.”
— The Institute of International Finance, January 13 2012.
On the morning of this past Friday the 13th, I was greeted on my home page, Bloomberg.com, by the lead story– which was of investors cheering and captioned by the statement that good news is at hand, CEOs are now in a hiring mood. I had an uh-oh moment in my usual contrarian way. Was [...]
The Wall Street Journal is reporting tonight that the EU leaders are giving Greece an ultimatum on their continued membership in the EMU. Do they want to dump the euro and go their own way? This is evidence of the fury created by George Papandreou by his deceitful actions.
“Does Greece want to remain part [...]
There are several things that you need to know about the eurozone crisis and Wednesday’s Summit agreement:
It isn’t over. The European Monetary Union’s (EMU) “architecture” is a failure. They spent too much and can’t possibly repay the debt. Banks will need to be bailed out. They will print money.
In order to understand the [...]
TOP DEVELOPMENTS SO FAR (as of 16:45 p.m. EDT):
European Union leaders arrived in Brussels for a EU Summit Germany’s parliament approves Chancellor Angela Merkel’s resolution to boost the firepower of the euro zone’s bailout fund EU leaders remain split on the size of a haircut on Greek bonds held by private investors, a sticking point [...]
This is the key to the eurozone mess: will Greece be able to shore up its finances and balance its budget by cutting spending and raising revenue, or not?
The answer today is: apparently not:
Greece’s budget deficit for the first nine months of 2011 widened 15.1% from a year earlier, as revenues continued to [...]