Category Archives: Merkel

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

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

Dithering Only Makes Matters Worse For EZ

Angela Merkel, Forbes’ most powerful woman in the world, is acting more like a rabbit dazzled by the headlights of the oncoming Euro Zone juggernaut as she reluctantly acts to save the Euro Zone. But dithering will get her nowhere and … Continue reading

Posted in Bailout, Bonds, Debt, Euro Zone, Germany, Merkel, Politics | 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

Low UST Yields Are Path To Fiscal Expansion

Think about this. Look at where 10-year US Treasury yields are, look at 10-year UK gilt yields for that matter. The world is crying out for AAA assets. The world’s investors want somewhere safe for their cash; European pension funds, … Continue reading

Posted in Austerity, Debt, Euro Zone, Merkel, Obama, Recession, Republicans, Sarkozy, Tax Cuts, US | Leave a comment

In The Know

August 18 2011 WSJ – Fed Eyes European Banks : Regulators Scrutinize Ability of Institutions’ U.S. Units to Fund Themselves Federal and state regulators, signaling their growing worry that Europe’s debt crisis could spill into the U.S. banking system, are intensifying their … Continue reading

Posted in Bank of England, Bloomberg, BOE, China, Daily Telegraph, Debt, Euro Zone, European banks, Fed, Federal Reserve Bank of New York, Gold, Merkel, Monetary Policy Committee, Quantitative Easing, Recession, Reuters, Sarkozy, Tax, Unemployment | Leave a comment