Tag Archives: Debt Crisis

Sovereign Risk and Debt Crises

We received some interesting pushback on our recent post, Is the U.S. Government Bankrupt?  Not Even Close. The purpose of the post was to remind readers to not ignore the left side of a government’s balance sheet — assets —  … Continue reading

Posted in Black Swan Watch, Bonds, Euro, Eurozone Sovereign Spreads, Italy, Japan, Uncategorized | Tagged , | Leave a comment

Weekend Lecture: Can the Eurozone Survive? – LSE

After four successive crisis years, an economic recovery in Europe is within sight. The euro’s survival – which was in question as recently as a year ago – appears assured. But the crisis remains chronic, if not fatal. Without further … Continue reading

Posted in ECB, Economics, Euro, Germany | Tagged , , | Leave a comment

No end in sight to Spain’s financial troubles

Hurry up, Mario! (click here if video is not observable)

Posted in Black Swan Watch, Euro, PIIGS, Spain | Tagged , , , | Leave a comment

Weekly Eurozone Watch

Key Data Points German 10-year bund 2 bps higher; France 8 bps wider; Spain 5 bps tighter; Portugal 67 wider; Ireland 66 tighter; Greece 131 bps tighter; Spanish and Italian bank stocks 3-10 percent higher; Euro FX up 0.66 percent; … Continue reading

Posted in Weekly Eurozone Watch | Tagged , , , , , , | Leave a comment

Spain’s New P.M. Unveils Austerity Measures

(click here if video is not observable)

Posted in Black Swan Watch, Euro, PIIGS, Sovereign Debt, Sovereign Risk | Tagged , , , | Leave a comment

Spiegel: Obama “like a doctor caught prescribing performance-enhancing drugs”

Go no further than the Der Spiegel piece, Why Europe Is Right and Obama Is Wrong, to understand the fundamental differences between American and German thinking on fiscal and monetary stimulus. Michael Sauga, the author, writes, American economists, central bankers and fiscal … Continue reading

Posted in Black Swan Watch, Fiscal Policy, Geopolitical, Monetary Policy, Policy, Sovereign Debt, Sovereign Risk | Tagged , , , | Leave a comment

La Grande Divergence

Great chart of eurozone sovereign 10-year yields from Desmond Lachman of the American Enterprise Institute.  We made a decent living off the “great convergence trade” of the 1990’s, where yields of the eurozone sovereigns collapsed on top of each other.  … Continue reading

Posted in Black Swan Watch, Bonds, Budget Deficit, Euro, PIIGS, Sovereign Debt, Sovereign Risk | Tagged , , , , , | 1 Comment

Sovereign Debt: Not So Risk-Free

Joseph Cotterill over at FT Aphaville has a great post on how some European corporate bonds are trading through their sovereigns.   Not surprising it taking place in countries without access to a printing press to monetize deficit spending, Markit pointed … Continue reading

Posted in Black Swan Watch, Bonds, Currency, Fiscal Policy, Geopolitical, Monetary Policy, Policy | Tagged , , , | Leave a comment

MS Poll: 53% Believe US Debt Crisis By 2012

An interesting chart from the Business Insider of the results of a Morgan Stanley survey of 150 clients at a recent investment conference.   Shockingly, more than 50% of the investors polled believe the US will experience a sovereign debt … Continue reading

Posted in Black Swan Watch, Bonds, Credit, Monetary Policy, News, Policy, Politics, Sovereign Risk | Tagged , , , | Leave a comment