In an Spiegel Online interview, George Soros says that as an investor he would be very pessimistic, especially about Europe and warns that Germany could develop into a hated, imperial power.
On whether return to the deutschmark would be cheaper for Germany:
There is no question that a breakup of the euro would be very [...]
It is very difficult to have a dry island in a severely over-flooded region. Germany’s economy is strongly dependent upon exports and nearly 44% of her export are to other EU countries. If the economies of EU countries like Greece, Spain, Portugal, Italy etc. get in trouble then to expect that Germany will remain unaffected [...]
The CEO and Co-CIO of PIMCO is basically opining about the trader/investor psychology.
Monday’s disappointing market reception to the bailout package for Spanish banks is a reminder to European policymakers of something that is more than familiar to veteran sovereign crisis managers in emerging countries: The greater the erosion of policymaking credibility, the harder it [...]
Given Chancellor Merkel’s insistence on implementing austerity dominant policies to solve European crisis, you would think that people who are helping her develop such approach would produce articles that would support her position. Not so from Caille Millner, who used to be a fellow at the Konrad-Adenauer Stiftung – a think tank for the Christian [...]
I have been reading and thinking a lot lately about the euro zone financial crisis, mainly because I think that it is holding the world economy in check and by extension the global financial markets. I have read many news articles and commentaries by economists, financial experts and reporters. Recently, I came across a Martin [...]
There is definitely a conscious effort on the parts of Chancellor Merkel and her cohorts like Jörg Asmussen, Member of the Executive Board of the ECB and a fellow German, to impose their ideological approach to the European crisis. However, it is increasingly looking like a failure of leadership.
She is working hard to lower [...]
Spain is expected to ask Europe for help at the weekend with recapitalizing its stricken banks, EU and German sources said on Friday, becoming the fourth country to seek assistance since the euro zone’s debt crisis began.
The Finance chiefs of the Group of Seven leading industrialized powers will hold emergency talks on the euro zone debt crisis on Tuesday.
It could be a good thing or just another whimper. The news and statement do not provide too great a comfort. It may just be more of the same medicine.
They effectively [...]
The famed hedge fund manager, George Soros, thinks that after election Greece will stick by current bailout agreements but would find it impossible to do so. further more, German economy will start to weaken by fall 2012.
“The Greek crisis is liable to come to a climax in the fall. By that time the German [...]
In the midst of the European sovereign debt crisis, investors are bidding for sovereign debt. On May 24, 2012 the yields on Austrian, Belgian and French bonds plunged to record lows. Earlier in the week, Germany sold zero-coupon bonds. US bond yields are also near their record lows.
On Friday August 5, 2011, Standard & [...]
Economist Paul Krugman recently gave an interview to German magazine Der Spiegel in which he argues that this is not the time to worry about debt and inflation. Here are some choice excerpts:
On Greece leaving the euro zone:
What happens if Greece leaves? Then you have again a bank run in other peripheral countries [...]
Greece is stuck between a rock and a hard place. Next month it will go to poll – again – to determine who will govern it. The choices are not easy and it is quite likely that the result may be another hung parliament just like the one after the last election on May 6th.
William K. Black of New Economic Perspectives writes that ex-President of ECB, Trichet is suggesting that EU give Greece a treatment that Governor Rick Snyder of Michigan gave to Benton Harbor:
Michigan Governor Rick Snyder secured passage of “Public Act 4, the Local Government and School District Fiscal Accountability Act. The Act allows the Governor [...]
Economist Nouriel Roubini believes that the Greek euro tragedy is nearing its final act and the country will exit the euro either this year or next year. He says that Greece is stuck in a vicious cycle of insolvency, lost competitiveness, external deficits, and ever-deepening depression and the all the solutions that might improve Greece’s [...]
Jean Paul Trichet has a bold idea to save the euro. He wants to give European politicians the power to declare a sovereign state – read Greece – bankrupt and take over its fiscal policy. No, this is not a news from Onion. Ex-President of ECB unfurled his plan ahead of the G8 summit at [...]