Tag Archives: European Sovereign Debt Crisis

“Tea Party” Opposition to the Euro Grows in Germany

  We can’t believe we missed this over the holidays. Germany’s SpiegelOnline reported on December 27, In a survey conducted in early December by the polling firm Infratest dimap, 57 percent of respondents agreed with the statement that Germany would … Continue reading

Posted in Black Swan Watch, Bonds, Economics, Euro, Fiscal Policy, Geopolitical, Monetary Policy | Tagged , | 1 Comment

Europe’s Big Fail…

One lesson we have learned during the financial crisis is that a country’s banking system is an indirect liability of the sovereign.  That is, unless the government is willing to allow banks to fail and let the domestic financial sector … Continue reading

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

Washington Gets Serious on Deficit Reduction

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

“This could break backs…economies toward bankruptcy”

These were the words of Greek prime minister George Papandreou, speaking about Germany’s tough stance on burden sharing during his visit to Paris.   The fracturing of the eurozone appears to be accelerating, or, at best, the fault lines are beginning … Continue reading

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Merkel Blinks, Irish Bonds Rally

The panic in the European periphery eased a but as Irish bonds rallied sharply after finance ministers issued a statement that current debt would not be included in burden sharing in the event of a sovereign restructuring.    The FT writes, … Continue reading

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No Luck Be A Lady and The (Bad) Luck of the Irish

The Irish are caught in the middle of panicky capital flows and the loose rhetoric of European leaders.   PM Brian Cowen tried to calm markets after comments from German Chancellor Angela Merkel suggested that not all national debt should be … Continue reading

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