Markets

BAD NEWS: This Euro Situation Is Just Going To Go On And On And On And On…

[credit provider=”Ibrahim Iujaz on Flickr” url=”http://www.flickr.com/photos/notsogoodphotography/5739769957/”] With the media outlook swinging from wildly positive to wildly negative on a daily basis and rumours spiraling out of control, it can be hard to tell exactly where things stand on the eurozone crisis.But let’s be clear: the eurozone crisis is NOT going […]
BAD NEWS: This Euro Situation Is Just Going To Go On And On And On And On…
Markets

GREEK FIN MIN: If Europe Can’t Save Greece, It Can’t Save Itself

[credit provider=”AP” url=”http://www.apimages.com/OneUp.aspx?st=k&kw=Evangelos%20Venizelos&showact=results&sort=creationdatelower%3Areversealphabetical&intv=None&sh=10&kwstyle=and&adte=1314047304&pagez=60&cfasstyle=AND&rids=554882c6cfc04508abc8c8be1c0c63d1&dbm=PY2011&page=1&xslt=1&mediatype=Photo”] Greek Finance Minister Evangelos Venizelos warned today that if Europe cannot save Greece, it cannot save itself, according to Bloomberg.Reuters also reports that he proposed a “euro-atlantic axis” to take steps to resolve the crisis.
GREEK FIN MIN: If Europe Can’t Save Greece, It Can’t Save Itself
Markets

ECB’s Bonnici: Need To Wait For More Hard Data To Judge Economic Situation

Eurozone inflation situation is more stable, liquidity more important than rates ECB borrowing costs extremely cheap, inflation appears stable and  not far from ECB objectives Greek insolvency shouldn’t be scenario, situation moving in the right direction Spain and Italy proposals for consolidation should be enough to get them back to fiscal […]
ECB’s Bonnici: Need To Wait For More Hard Data To Judge Economic Situation
Markets

Morgan Stanley: The ECB, Explained

The European Central Bank may be telling the world it has virtually unlimited liquidity, but except for the extremely unpalatable approach of just printing more money, this promise is not as sturdy as it seems.
Morgan Stanley: The ECB, Explained
Markets

The ECB Relaxes Its Collateral Rules And Makes It Easier For Banks To Borrow

[credit provider=”flickr:timsnell” url=”http://www.flickr.com/photos/timsnell/4569457286/”] According to CNBC, The ECB just changed its rules for allowing banks to use debt instruments to be used as collateral.Before, debt instruments could only be used if they were covered bonds, or approved for trading on regulated markets. Now, they’ve thrown that rule out.
The ECB Relaxes Its Collateral Rules And Makes It Easier For Banks To Borrow
Markets

Eurozone Finance Ministers Finally Admit That Banks Need To Be Recapitalized

[credit provider=”DanielleCM via flickr” url=”http://www.flickr.com/photos/danni_m/536492895/”] According to Reuters, EU finance ministers have prepared a statement calling for European banks to raise their capital.The move would signal acknowledgment of the ineffectiveness of bank stress tests conducted by the European Central Bank in July. This couples mounting speculation that banks may indeed […]
Eurozone Finance Ministers Finally Admit That Banks Need To Be Recapitalized
Markets

What EU Leaders Just Said At Their Press Conference

UPDATE: A time frame for EFSF approval by eurozone parliaments is probably the biggest news coming out of this meeting. The EU officials said parliaments should all approve the July 21 agreement by early October so that funds can be dispersed by mid-October. They all stressed that this would only […]
What EU Leaders Just Said At Their Press Conference
Markets

Britain Suing The ECB!

Britain will sue the European Cental Bank to prevent it from implementing a new policy that would drive London’s financial services sector to the Continent, according to the FT.
Britain Suing The ECB!
Markets

IT’S OFFICIAL: Nobody In Europe Has Any Idea What’s Going On

It’s hard to be optimistic about any solution in Europe if you listen to what top European leaders are saying today. First, you have ECB boardmember Carlos Costa saying that the Eurozone was better off than the UK and the US, because external debts were lower. Sorry, but external debts […]
IT’S OFFICIAL: Nobody In Europe Has Any Idea What’s Going On
News

Politics In 60 Seconds

Good morning. Here’s the news:1. The Taliban yesterday detonated a powerful truck bomb at a major military base in eastern Afghanistan near Kabul, killing five Afghan civilians and injuring 77 American troops. The blast was timed to coincide with the 10th anniversary of 9/11.
Politics In 60 Seconds
Markets

Excitment/Fear About The Dovish New ECB Is Boiling Over

[credit provider=”ap”] It may be too late to save Greece from default, but Eurozone doves are excited as the European Central Bank sheds its biggest hawks.Outspoken ECB critic Nouriel Roubini sees a brighter future. He tweeted this morning: “With Weber, Stark, Trichet and Bini Smaghi all soon gone the ECB […]
Excitment/Fear About The Dovish New ECB Is Boiling Over
Markets

ECB Deserter Proposed “Quantum Leap” For Eurozone

[credit provider=”AP”] Jürgen Stark — who quit the European Central Bank over bond-buying this morning — told Handelsblatt that the European Monetary Union has to consolidate in order to function effectively.According to a report published in that paper this morning, Stark believes “far-reaching reform of the decision and sanction mechanisms” […]
ECB Deserter Proposed “Quantum Leap” For Eurozone
Markets

There’s Only One Speech That Really Matters Today

[credit provider=”horasis via Flickr” url=”http://www.flickr.com/photos/horasis/4672102342/in/set-72157624208930732/”] If you think the big speech of the day is Obama’s jobs speech at 8:00 PM ET, you’re not paying attention.First, let’s quickly explain why Obama’s speech won’t be that big of a deal: We know all the details, the Republicans have already said they […]
There’s Only One Speech That Really Matters Today
Markets

Italian Bond Spreads Back On The March

While yields on Italian bonds are certainly not out of control again (yet), bonds to bunds spreads have been marching steadily upwards since bond buying by the European Central Bank pulled them down last month.
Italian Bond Spreads Back On The March
Markets

Talks Over $8 Billion In Bailout Funds Stalled After Greeks Miss Reform Goals

[credit provider=”AP” url=”http://www.apimages.com/OneUp.aspx?st=k&kw=Evangelos%20Venizelos&showact=results&sort=creationdatelower%3Areversealphabetical&intv=None&sh=10&kwstyle=and&adte=1314047304&pagez=60&cfasstyle=AND&rids=554882c6cfc04508abc8c8be1c0c63d1&dbm=PY2011&page=1&xslt=1&mediatype=Photo”] Discussions between Greece and officials from the “troika” of the European Union, European Central Bank, and International Monetary Fund will pause for 10 days so that Greece can perform a technical study of its economic data.This pause follows revelations yesterday that Greece will miss its deficit-cutting and […]
Talks Over $8 Billion In Bailout Funds Stalled After Greeks Miss Reform Goals
News

Politics In 60 Seconds

[credit provider=”Associated Press”] Good morning! Here’s the news:1. Reuters reports: “The euro fell across the board on Thursday after a weaker-than-expected reading of German manufacturing highlighted increasing sluggishness in the euro zone’s largest economy.” Eurozone manufacturing activity is down virtually everywhere. 
Politics In 60 Seconds
Markets

The Eurozone Crisis Is All Italy’s Fault

[credit provider=”Rai.TV” url=”http://www.rai.tv/dl/RaiTV/diretta.html?cid=PublishingBlock-64203784-70f7-4b53-9d21-b14693850195&channel=Rai%201#cid=PublishingBlock-233b8482-1cbc-4970-87d5-9d7604b26ddb”] I am about to take a two week vacation (though will update the blog).I had some time off earlier in the summer, but it was dominated by the concerns of a father of a Little League baseball pitcher.
The Eurozone Crisis Is All Italy’s Fault
Markets

Warning Sign In Europe, As Bank Approaches ECB To Buy Dollars

[credit provider=”Images_of_money on Flickr” url=”http://www.flickr.com/photos/[email protected]/5858030702/sizes/l/in/photostream/”] A bank approached the European Central Bank to borrow dollars in violation of a major lending taboo, according to FT Alphaville.Banks systematically approach the ECB to temporarily borrow euros, but avoid asking for dollars unless pressed to find a reasonable borrowing rate.
Warning Sign In Europe, As Bank Approaches ECB To Buy Dollars
Markets

The State Of Global Monetary Policy In One Paragraph

[credit provider=”ECB”] From Morgan Stanley’s Joachim Fels:Economic conditions and policy legroom have switched places since 2008. Back then, economies were in very poor shape and policy legroom abundant. Since then, economic conditions have improved but policy is significantly more constrained than it was then. Despite higher thresholds to easing, the […]
The State Of Global Monetary Policy In One Paragraph
Tech

WHAT IN GOD’S NAME HAPPENED TO THE MARKETS? The SAIcast Discuss

Today everything in the market tanked. The US faced its first day as a AA+ rated nation and Europe continued to get crushed as it seemed no one was safe from investors’ debt fears. Join Nicholas Carlson, Politics editor John Ellis, and Politics reporter Zeke Miller as they discuss the […]
WHAT IN GOD’S NAME HAPPENED TO THE MARKETS? The SAIcast Discuss
Markets

BTW: RIP ECB INDEPENDENCE

[credit provider=”EU”] We’re waiting on Silvio Bersluconi to speak at 1:30, while watching this bonkers market.One quick note: If indeed the ECB is coordinating with the government of Italy to trade debt monetization in exchange for reforms, that should pretty much end any notion that the ECB is independent somehow.
BTW: RIP ECB INDEPENDENCE
Markets

Seeing Double At The World’s Central Banks

 Central banks are now targeting liquidity, not just inflation. The credit boom of the past decade highlighted the inadequacy of focusing only on prices, and underscored the need for the monetary authority of a country (or group of countries in the case of the European Central Bank and the eurozone) […]
Seeing Double At The World’s Central Banks
Markets

ECB Hikes Interest Rates To 1.50%

[credit provider=”World Economic Forum at Flickr” url=”http://www.flickr.com/photos/worldeconomicforum/2297234392/”] Update: Exactly as expected, a 25 basis point hike.Again, the real news will come in 45 minutes when Trichet speaks.
ECB Hikes Interest Rates To 1.50%
Markets

More Developments That Will Undermine The Euro

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Draghi,_Mario_%28IMF_2009%29.jpg”] The last few days have been very significant and will likely shape investors views in the weeks ahead.  While Greece remains at the epicentre of the European debt crisis, the issue is much bigger.  It has begun bleeding over not just into Ireland and Portugal, but […]
More Developments That Will Undermine The Euro
Markets

This Is What Will Happen If Greece Defaults

If Greece defaults on its sovereign debt, the effects will be global. Everyone from Japanese savers to U.S. retirees is likely to feel the effects. Let’s run through the dominos that could fall after a Greek default.
This Is What Will Happen If Greece Defaults
Markets

European Leaders Are In Open Revolt Against ECB President Jean-Claude Trichet

The feud between ECB president Jean-Claude Trichet and German finance Minister Wolfgang Schaeuble escalated in a major way today with members of German Parliament siding with Schaeuble and against the wishes of the ECB. German Politicians Demand Private Creditors Participate Please consider Germany MPs discuss resolution on Greece aid
European Leaders Are In Open Revolt Against ECB President Jean-Claude Trichet
Markets

The Flight of the Doves Money, Spending, Employment, Inflation, Disinflation, And The Need To Compete In A Changed World

Highlights U.S. government interventions in the economy, initially aimed at arresting financial free-fall, and swiftly followed by additional measures targeted at spurring an economic recovery, have been quite successful with regard to the former goal. But such policies have been notably unsuccessful at restarting activity that can be described as […]
The Flight of the Doves Money, Spending, Employment, Inflation, Disinflation, And The Need To Compete In A Changed World
Markets

10 Tipping Points Which Could Plunge The World Into An Economic Nightmare

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:About_to_dive_off_a_dock.jpg”] The global economy has become so incredibly unstable at this point that it is not going to take much to plunge the world into a horrific economic nightmare.  The foundations of the world economic system are so decayed and so corrupted that even a stiff breeze […]
10 Tipping Points Which Could Plunge The World Into An Economic Nightmare
Markets

Germany’s Wolfgang Schäuble Has Just Backed Jean-Claude Trichet Into A Corner

[credit provider=”World Economic Forum at Flickr” url=”http://www.flickr.com/photos/worldeconomicforum/2297234392/”] Greece needs to force a 7-year extension on its bondholders if it is to recieve more bailout cash from European powers, says German finance minister Wolfgang Schäuble.Schäuble has outlined in a letter that the German government wants this extension as part of a […]
Germany’s Wolfgang Schäuble Has Just Backed Jean-Claude Trichet Into A Corner
Markets

ECB’s Lorenzo Bini Smaghi Says Central Bankers Need To Ignore Core Inflation

[credit provider=”AP”] Core inflation is not a good indicator of where headline inflation is going and, therefore, it should be ignored when making monetary policy decisions, according to the ECB’s Lorenzo Bini Smaghi.Smaghi, writing in The Financial Times, argues that excluding food and energy costs may make the index less […]
ECB’s Lorenzo Bini Smaghi Says Central Bankers Need To Ignore Core Inflation
Markets

When Trichet Speaks, Listen For These Two Words

While this morning’s policy announcement was a snooze, but at 8:30 AM ET Jean-Claude Trichet will be speaking to the press about the ECB’s latest policy decision. He could signal a rate hike there, and the only two words you need to watch for are Strong Vigilance.
When Trichet Speaks, Listen For These Two Words
Markets

REPORT: Merkel Approves Mario Draghi As Next ECB Chief

[credit provider=”AP”] The latest 2:35 PM: German Chancellor Angela Merkel may have just approved Draghi as her candidate to replace Jean-Claude Trichet as the president of the ECB, according to German tabloid Bild (via forexlive).Whether she got any concessions of the deal is unknown. We’ll let you know if we […]
REPORT: Merkel Approves Mario Draghi As Next ECB Chief
Markets

Europe Is About To Pick An Italian To Save The Euro?!

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Draghi,_Mario_%28IMF_2009%29.jpg”] German politicians are closing to agreeing on Italian Mario Draghi to be the next ECB chief.Draghi has the support of the junior coalition party in Chancellor Angela Merkel’s government, but has not yet received the vocal support of Merkel herself, according to Bloomberg.
Europe Is About To Pick An Italian To Save The Euro?!
Markets

One Dove Stands Between The ECB And Another Rate Hike

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:2006_1031turturduva0224.JPG”] Michael Bonello, governor of the central bank of Malta, spoke out this morning against another potential rate hike in the eurozone, suggesting it could be a threat to the region’s banking system.Bonello said in a speech this morning (via Bloomberg):
One Dove Stands Between The ECB And Another Rate Hike
Markets

IMF Warns ECB Not To Tighten While Europe’s Banking System Is Still A Mess

[credit provider=”AP”] The IMF has targeted the European Central Bank’s decision to raise rates in its latest World Economic Outlook, suggesting its leaders should show more patience in the tightening process.The IMF cites low core inflation expectations, the likelihood of a decline in commodity prices in the short-term, and excess […]
IMF Warns ECB Not To Tighten While Europe’s Banking System Is Still A Mess
Markets

George Soros Says Trichet Got It Wrong, There’s No Way The ECB Should Have Hiked Rates

[credit provider=”World Economic Forum via Flickr” url=”http://www.flickr.com/photos/[email protected]/4309799402″] George Soros has come out against Jean-Claude Trichet, the ECB, and its recent rate hike, according to an interview with Bloomberg TV.”It is not appropriate in current circumstances when you have a number of countries that are suffering from too much debt and […]
George Soros Says Trichet Got It Wrong, There’s No Way The ECB Should Have Hiked Rates
Markets

Trichet Explains Why He Did It

The headline: Don’t expect a rate hike next month, though another sharp spike in energy prices due to Middle East instability could trigger such a move. This is not the first in a series of hikes, according to Trichet.
Trichet Explains Why He Did It
Markets

Jürgen Stark Explains Why Massive Unemployment In Spain Is Not The ECB’s Problem

[credit provider=”Wikimedia Commons” url=”http://en.wikipedia.org/wiki/File:JuergenStark01.jpg”] ECB chief Jürgen Stark has denied the bank is ignoring the problems of the region’s weakest states in an editorial in the FT.His comments are in direct opposition to those who believe the ECB should be keeping rates low to protect the eurozone countries still struggling […]
Jürgen Stark Explains Why Massive Unemployment In Spain Is Not The ECB’s Problem
Markets

ECB Prepares For The Worst, Loads Up Fund With More Than €60 Billion To Support Ireland’s Banks

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Dublin_riots_traffic_cone.jpg”] The ECB is prepared for next Thursday’s Irish banking stress tests to go terribly, and has set aside more than €60 billion ($84 billion) in support, according to The Irish Times.The plan would supply “medium term” capital to Irish banks, essentially liquidity support, so they can […]
ECB Prepares For The Worst, Loads Up Fund With More Than €60 Billion To Support Ireland’s Banks
Markets

Is Scott Sumner Reality Based ?

Scott Sumner wrote If pressed, Keynesians will usually point to real interest rates as the right measure of monetary ease or tightness. By that criterion the Fed adopted an ultra-tight monetary policy in late 2008. Monetarists will usually say that M2 is the best criteria for the stance of monetary […]
Markets

Is This Former Gymnast The Next ECB President?

[credit provider=”AP”] The latest name to be mentioned as a potential success for for ECB president Jean-Claude Trichet is that of Luxembourg’s central bank chief Yves Mersch.Since Germany’s Axel Weber dropped out of the running, there’s been no clear front runner, though Italian Mario Draghi has been heavily talked about.
Is This Former Gymnast The Next ECB President?
Markets

ECB Peripheral Divergence & EURUSD

The primary reason for the currency’s stabilisation earlier this year and the subsequent 10% rally from early Jan was the ECB’s hawkish rhetoric in the face of rising inflation.
ECB Peripheral Divergence & EURUSD
News

Angela Merkel Holds The Fate of Europe In Her Hands

As if you didn’t have enough to worry about, tomorrow brings a meeting in Brussels of the leaders of the European Union.  They’ll be gathering to discuss Angela Merkel’s grand bargain: succinctly described by The Economist magazine as follows: “in exchange for boosting the euro’s defences, she wants tighter economic […]
Angela Merkel Holds The Fate of Europe In Her Hands
News

Sarkozy Running THIRD In French Polling

When the Harris Interactive poll of a hypothetical French presidential  “primary” election was published, the reaction among insiders was: the books were cooked. 
Sarkozy Running THIRD In French Polling