Category: Eurozone Debt Crisis
The analysis published under this category are as follows.
Monday, March 18, 2013
Cyprus Haircut: Germany's Social Darwinist Economic Miracle / Politics / Eurozone Debt Crisis
By: Andrew_McKillop
ANGELA MERKEL WAS FIRM
The now celebrated "Cyprus haircut" of bank depositors' savings and private wealth, from the account of the smallest "man in the street" to those of the Russian oligarchs who have transformed Cyrus's banking system into a vast money-laundering machine, was described by Germany's Angela Merkel as follows:
Monday, March 18, 2013
Cyprus Banking Money Grab: Greece, Italy, France, Spain, Next? / Stock-Markets / Eurozone Debt Crisis
By: Bob_Kirtley
The Eurozone finance ministers have signaled their intentions as their latest idea to bailout Cyprus included savers having to surrender up to 9.9% of their deposits in return for a $13 billion bailout.The decision shocked Cypriots and caused a run on ATMs, most of which were depleted of funds within hours.
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Sunday, March 17, 2013
Cyprus, Greece Gathering Storm Threatens Europe and America / Stock-Markets / Eurozone Debt Crisis
By: EWI
The similarities between Greece and pre-WWII Germany are striking.
- Nazi salutes.
- Praise for Adolf Hitler.
- Swastika-like banners.
Sunday, March 17, 2013
The Cyprus Bailout Deal is Already Under Threat (Of Course) / Politics / Eurozone Debt Crisis
By: Raul_I_Meijer
One day after it was agreed on and announced by the Eurogroup and Cyprus president Nicos Anastasiades, the deal that would turn the Eurozone into a Pandora's box like no other EU measure to date has done looks like it may never reach the finish line. The Cypriot parliament, in which freshly elected Anastasiades holds just 20 of 56 seats, has pushed a vote on the deal forward until Monday, a clear sign that the president's political adversaries will not easily be locked into an agreement that is obviously and for good reason hugely unpopular.
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Thursday, March 14, 2013
Greek's Radical Left: The Dangers of the Disaffected and the Unemployed / Politics / Eurozone Debt Crisis
By: STRATFOR
In last week's Geopolitical Weekly, George Friedman discussed how the global financial crisis has caused a global unemployment crisis and how Europe has become the epicenter of that crisis. He also noted that rampant unemployment will give way to a political crisis as austerity measures galvanize radical political parties opposed to the status quo.
Wednesday, March 13, 2013
EU Passes Law Forcing Countries to Take Bailout; Spain First Target? / Politics / Eurozone Debt Crisis
By: Mike_Shedlock
Want a bailout? Need a bailout? Actually, it does not matter what your country wants or needs.
By a 526 to 86 vote, the nannycrats in Brussels just passed a regulation that will require a country to accept a bailout if offered.
Thursday, February 28, 2013
Eurozone Dangling by a Thread, Another Fine Italian Mess / Politics / Eurozone Debt Crisis
By: Money_Morning
Martin Hutchinson writes: Four days after the Italian elections only one thing is clear: A majority of Italian voters have rejected austerity.
The problem is their victory came up short by the slimmest of margins.
0.36%. That's the difference between a firm new government that could move Italy out of the Eurozone and the constitutional logjam Italian voters woke up to the next day.
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Sunday, February 24, 2013
Europe’s Fine… Just Ask Depositors Who Saw Their Savings Go to ZERO / Interest-Rates / Eurozone Debt Crisis
By: Graham_Summers
Anyone who wants to get an inside look at both the European banking system and the politicians in charge of fixing it need to only look at Spain’s Bankia.
Bankia was formed in December 2010 by merging seven totally bankrupt Spanish cajas (regional banks that were unregulated). The bank was heralded as a success story and an indication that European Governments could manage the risks in their banking systems.
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Saturday, February 23, 2013
Euro-zone Debt Crisis - Whatever It Takes / Interest-Rates / Eurozone Debt Crisis
By: John_Mauldin
Lord Melchett: “Farewell, Blackadder [hands him a parchment]. The foremost cartographers of the land have prepared this for you; it's a map of the area that you'll be traversing. [Blackadder opens it up and sees it is blank] They'll be very grateful if you could just fill it in as you go along. Bye-bye.” – From the English comedy series Blackadder (Part 2, Episode 3)
Was it only a few years ago I visited the Emerald Isle of Ireland? So recently had this fair land come to such a sad state. The collapse of its largest banks foreshadowed the demise of many other European banks that had borrowed money from British, German, and other European banks to lend against homes and property. The Irish government had to guarantee deposits and bond holders in order to prevent a bank run. I think I am correct when I state that the Central Bank of Ireland was the first central bank to avail itself of large-scale use of the Emergency Liquidity Assistance (ELA) provision of the European Central Bank. This was before we became so familiar with the process in Greece.
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Tuesday, February 19, 2013
If Europe Were a House… It’d Be Condemned…. / Politics / Eurozone Debt Crisis
By: Graham_Summers
One of the primary focal points of our writing is the corruption that has become endemic to the political and financial elites of the world. When we refer to corruption we are referring to insider deals, cronyism, lies and fraud. Since the Great Crisis began in 2008, these have become the four pillars of the financial system replacing the pillars of trust, transparency, truth and reality that are the true foundation of capitalism and wealth generation.
Monday, February 18, 2013
Spanish Debt Grows by €146 Billion, Largest Ever Recorded / Interest-Rates / Eurozone Debt Crisis
By: Mike_Shedlock
Proof there is no rebalancing in Europe is easy to find. For example, El Pais reports Spanish Debt Grows by €146 Billion.
What follows is a Mish-modified translation of the above Google-translation.
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Saturday, February 16, 2013
What Happens to a Financial System When Its Two Biggest Pillars Collapse? / Stock-Markets / Eurozone Debt Crisis
By: Graham_Summers
Those EU leaders who have yet to be implicated in scandals are not faring much better than their more corrupt counterparts. In France, socialist Prime Minister Francois Hollande, has proven yet again that socialism doesn’t work by chasing after the wealthy and trying to grow France’s public sector… when the public sector already accounts for 56% of French employment.
Friday, February 15, 2013
Eurozone Debt Crisis Isn't Over, Investors Cannot Relax / Stock-Markets / Eurozone Debt Crisis
By: Money_Morning
David Zeiler writes: After nearly four years, billions in bailouts and increasingly strict austerity measures, not only is the Eurozone debt crisis no closer to resolution, but the attempts to solve it are pushing the region deeper into recession.
According to Eurostat, the Gross Domestic Product (GDP) for the 17-nation Eurozone plunged 0.6% in the final quarter of 2012, a steeper drop than the 0.4% economists had expected and the worst decline since 2009.
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Monday, February 11, 2013
Berlusconi is Back, and So Is the Eurozone Debt Crisis / Politics / Eurozone Debt Crisis
By: Money_Morning
Martin Hutchinson writes: Since the beginning of the year, the markets have been behaving as if the Eurozone debt crisis has been magically solved.
Yields on Spanish and Italian debt are trading more than 1% lower than at their peak, while world stock markets have soared close to all-time highs.
Unfortunately, you can expect that all of this euphoria will fade when the Italian elections take place on February 23-24.
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Thursday, January 24, 2013
New Cracks Appear in the Eurozone From Cyprus / Interest-Rates / Eurozone Debt Crisis
By: InvestmentContrarian
Sasha Cekerevac writes: For the past few months, the eurozone financial crisis has significantly subsided, at least on the surface. However, because of the fragility within the eurozone, it won’t take much for a new financial crisis to be sparked.
There are new questions arising about the future of the eurozone, and these begin not with the giant nations of that union, but with tiny Cyprus.
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Thursday, December 20, 2012
Eurozone 2013 Breakup Now Even More Likely / Politics / Eurozone Debt Crisis
By: Money_Morning
Martin Hutchinson writes:
To the complete shock of several analysts, the Eurozone managed to make it through 2012 without breaking up. However, 2013 is another story.
Now that Italy's Prime Minister Mario Monti has resigned, there's a good chance that Italy will be in the forefront of a new Eurozone crisis.
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Thursday, November 29, 2012
France In Big Trouble, EU Just Lost Another Prop / Economics / Eurozone Debt Crisis
By: Graham_Summers
Meanwhile, as Greece continues to distract the markets, France, the other primary prop for the EU besides Germany, is now experiencing an economic contraction on par with that of 2008-2009.
Indeed, France’s September’s auto sales numbers were worse than those of September 2008 (the month Lehman collapsed). The country’s PMI reading is back to April 2009 levels. Even the French Central Bank, which would hold off as long as possible before unveiling bad news, has announced the country will re-enter recession before year-end.
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Thursday, November 22, 2012
How Spanish Debt Default Would Trigger an Epic Financial Crash / Interest-Rates / Eurozone Debt Crisis
By: Graham_Summers
Over the last week I’ve introduced the concept of collateral: the little known basis for the entire financial system. We’ve also addressed why any EU sovereign default would bring about an epic meltdown as EU bonds, particularly those of Spain and Italy are the collateral underlying hundreds of trillions of Euros worth of trades for EU banks.
Again, the most important issue for the financial system is the search for high quality collateral.
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Monday, November 19, 2012
Euro Crisis: Major Implications For Investors / Stock-Markets / Eurozone Debt Crisis
By: John_Browne
The euro crisis has begun to feel like an everlasting steeplechase with high hedges and water obstacles blocking the path to economic resurgence on the Continent. Each time a hurdle has been cleared another problem emerges to potentially block the track. The latest developments involve ugly anti-austerity riots across the southern tier and open rifts emerging among the creditors, most notably between the International Monetary Fund and northern nations. Read full article... Read full article...
Tuesday, November 13, 2012
IMF and Eurogroup Fall out Over Greece Debt to GDP Ratio Reduction Timing / Politics / Eurozone Debt Crisis
By: Ian_R_Campbell
An article today reports on an apparent disagreement that arose last night between Jean-Claude Juncker, President of the Eurogroup of Finance Ministers, and Christine Lagarde, Managing Director of the International Monetary Fund. Mr. Juncker is reported as having said that Greece will be given two additional years - to 2022 from 2020 - to meet its debt reduction target of 120% of GDP. Ms. Lagarde is reported as having taken exception to this saying she and Mr. Juncker "clearly have different views" on Greek debt.