Monthly Archives: November 2010

Haircuts for Senior Bondholders in Irish Bank Package?

Posted on November 26, 2010 by macromon

This Irish Times is reporting the that EU-IMF are “examining” burden sharing for senior bondholders.   Several proposals are being discussed, but the major focus is on two ideas: 1) bank debt-for-equity conversions; and 2) option of providing fresh capital injections … Continue reading →

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Chart of the Day

Posted on November 26, 2010 by macromon
Posted in Black Swan Watch, Bonds, Budget Deficit, Fiscal Policy, Japan, Sovereign Risk | Leave a comment

Ireland and Greece: “very different financial meltdowns”

Posted on November 24, 2010 by macromon

Good piece on the Christian Science Monitor blog comparing the Irish and Greek crisis. The author defends four main differences: 1)      …while the Greek crisis involves long time fiscal mismanagement with systematically too large deficits even during the boom, the … Continue reading →

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Is Ireland’s Rescue Package a Veiled Bailout of the ECB?

Posted on November 23, 2010 by macromon

Not that it needs a one, but some in Ireland are starting to ask the question.   The European Central Bank exposure in Ireland is above €130 BN, a quarter of its book, and now wants its money back.  In the … Continue reading →

Posted in Black Swan Watch, Bonds, Fiscal Policy, PIIGS, Policy, Politics, Sovereign Risk | Tagged , , , | Leave a comment

‘The Euro Was Equivalent of US’ Subprime Securities’

Posted on November 23, 2010 by macromon

This quote is from today’s Spiegel Online International, which has an excellent summation of what the German newspapers are saying about the Eurozone sovereign debt crisis.   The leftist Die Tageszeitung writes: “Where earlier countries with small currencies like the Irish … Continue reading →

Posted in Black Swan Watch, PIIGS, Sovereign Risk | Tagged , , , | 1 Comment

Irish Sentiment

Posted on November 23, 2010 by macromon

This cartoon of Prime Minister Brian Cowen is on the cover of today’s Irish Times.  Pretty much sums up how the Irish feel.  How long can the Euro last?                       … Continue reading →

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Don’t Fight the Bank of Japan!

Posted on November 22, 2010 by macromon

The Nikkei 225 has been flying, while the global markets are down to flat,  since the November 5th Bank of Japan announcement that it would be purchasing equity ETFs as part of its QE program (click here for our post).   … Continue reading →

Posted in Equities, Monetary Policy, Policy | Tagged , , | 1 Comment

Washington Gets Serious on Deficit Reduction

Posted on November 22, 2010 by macromon

There is a whiff in Washington that the pols may be getting religion on the deficit.  The implosion of Europe must be scaring the s%*t out of them.  The WaPost writes, A debate is raging over the size and shape … Continue reading →

Posted in Black Swan Watch, Fiscal Policy, Politics, Sovereign Risk | Tagged , | 1 Comment

Ireland Bailout Equal to $8.8 trillion US Equivalent

Posted on November 22, 2010 by macromon

The FT reports the Irish bailout package will total €80bn-€90bn, which is about 60 percent of the country’s $200 BN annual GDP.  Massive!   The FT writes, The bail-out is expected to total €80bn-€90bn and will include contributions from the UK … Continue reading →

Posted in Black Swan Watch, Currency, Equities, PIIGS, Politics, Sovereign Risk | Tagged , , , | Leave a comment

The Corruption of Academia

Posted on November 21, 2010 by macromon

I saw Inside Job yesterday, which is a must view for anyone in the financial industry.  Clearly it has a lefty perspective and is very tough on the Street, but some scenes are illuminating and priceless.  The corruption of the … Continue reading →

Posted in Black Swan Watch | Tagged , , , , | 2 Comments