Click for ginormous chart:
Source:
An Overview of the Euro Crisis
NYT, October 22, 2011
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
"Dollar depreciation leads to higher inflation and ultimately forces foreign creditors to question their rationale and indeed their sanity for continuing purchases of U.S. Treasuries." -Bill Gross
Signs continue that European markets are getting tired. The Spanish and Italian stock markets, big beneficiaries of the sharp decline in their bond yields over the past few months are falling to the lowest since Feb 1. The European bank index is at a 1 1/2 week low after earnings reports from Commerzbank and Credit Ag (RBS bouncing although reporting weaker than expected earnings) were disappointing. This market action is in spite of the German IFO business confidence figure which rose to a 7 month high coming in a touch above expectations and Italian consumer confidence which bounced more than...
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October 23rd, 2011 at 5:50 pm
In a financial crisis, coordinated global leadership is the remedy to calm markets.
But what went down in Brussels this weekend verged on a food fight. Moreover, the ECB is in the midst of a leadership transition. And even the Troika split 2-to-1 on publishing ‘larger haircut’ scenarios (the ECB being the dissenter).
Who is the captain, on this steamship named Titanic? And what is that big white thing I see in the water off the forward bow?
October 23rd, 2011 at 6:09 pm
It’s all over connected. So it MUST be TBTF, right?
October 23rd, 2011 at 11:28 pm
Missing connections: China, UAE, etc…
October 24th, 2011 at 7:03 am
[...] A Visual Guide to the Euro Crisis | Risk and Return [...]
October 24th, 2011 at 7:58 am
The big hang up is who takes the losses and the longer they debate this the bigger the losses become. The bankers want their soverigns to take their losses in the modern tradition of private gain and public loss. The shaky soveigns want Others to take their losses. Others don’t want to take the growing losses. The political debate should ratchet up a couple notches when when the Others taxpayers realize they have to pay for the bankers and rioters. The method and size of these probable losses is being kept opaque – like greasing the suppository for the Others taxpayers.
I’m surprised the Greek government hasn’t fallen, Italy won’t be far behind.