Category Archives: European Central Bank

UK Veto Is A Smokescreen For Much Greater EZ Failures

The headlines in the aftermath of last week’s EU summit have largely been focused on the UK veto but surely the more important issue is what Germany is unwillingly to do to save the Euro. Economists generally agree that two … Continue reading

Posted in Bailout, Bonds, Debt, ECB, Economics, Euro Zone, European Central Bank, Germany, Ireland, Merkel, Quantitative Easing, Sarkozy | Tagged , , , , , , , , | Leave a comment

ECB’s Rate Cut And Liquidity Analgesic

The ECB’s latest rate cut and 36 month liquidity operations can ease interbank liquidity problems, but it acts more as a painkiller for a bullet wound and much deeper surgery is needed in the form of Euro Zone restructuring. Since … Continue reading

Posted in Austerity, Banking, ECB, Euro Zone, European banks, European Central Bank, France, Germany, Greece, Holland, Ireland, Italy, Merkel, Politics, Portugal, Spain | Tagged , , , , , , , , | 1 Comment

Euribor Spreads Show Worrying Reminder of 2008

The spread between secured and unsecured lending in the interbank markets as measured by the spread between 3-month Euribor and 3-month Eoniaswaps has taken a dangerously similar path to before the collapse of Lehman Brothers. Figure 1: 3mth Euribor spreads … Continue reading

Posted in Bailout, Banking, ECB, Euro Zone, European banks, European Central Bank, Germany | Tagged , , , , , , , , , | Leave a comment

Time To Shock And Awe Euro Zone

Congratulations to German Chancellor, Angela Merkel, for winning the vote in the Bundestag on the EUR440 billion EFSF. But, it’s not big enough. To save the Euro a “shock and awe” policy needs to be implemented to remove any doubts … Continue reading

Posted in Bailout, Banking, Bonds, Debt, ECB, Economics, Euro Zone, European Central Bank, Germany, Greece, Ireland, Merkel | Tagged , , , , , , , , | Leave a comment

Euro Zone Needs Credible Bank Run Insurance

The financial markets are in crisis mode once again. The flight-to-quality is in full effect with safe haven assets in high demand; gold is breaking new highs every day while US and UK government bonds are falling to record lows. … Continue reading

Posted in Bailout, Banking, Bonds, Debt, ECB, Economics, Euro Zone, European banks, European Central Bank, France, Germany, Merkel, Recession, Sarkozy, US | Tagged , , , , , , , , , , , , | Leave a comment

In The Know

August 16 2011 TELEGRAPH-Germany’s Angela Merkel faces eurobond mutiny : The simmering revolt in the Bundestag makes it almost impossible for Mrs Merkel to offer real concessions at Tuesday’s emergency summit with French president Nicolas Sarkozy. “We are categorical that the … Continue reading

Posted in Bonds, Daily Telegraph, Debt, ECB, Euro Zone, European Central Bank, Fed, Federal Reserve Bank of New York, Financial Times, Germany, Greece, Merkel, Portugal, Republicans, Sarkozy, US | Leave a comment

In The Know

    August 15 2011 TELEGRAPH – ECB is euroland’s last hope as bail-out machinery fails to resolve crisis. http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8700782/ECB-is-eurolands-last-hope-as-bail-out-machinery-fails-to-resolve-crisis.html      TELEGRAPH – Global debt crisis: Markets enter ‘new danger zone’. http://www.telegraph.co.uk/finance/financialcrisis/8701227/Global-debt-crisis-Markets-enter-new-danger-zone.html                            GUARDIAN … Continue reading

Aside | Posted on by | Leave a comment