You can clearly see a credit boom out of all proportion to economic growth as deposits went from almost 80 billion to nearly 240 billion euros in ten years. That’s a trebling in deposits in a decade...
Here’s a Spiegel article I wanted to flag briefly because it solidifies something I have been saying for a while about the euro area. This is the quote that was most notable: In response to a request by SPIEGEL,...
…[S]ome people think [the US Federal Reserve is] running an inflationary policy because an extra $1 trillion of reserves are in the banking system. […] For the Federal Reserve, as with most central banks, reserves...
I thought I’d point out that the already severely undercapitalised Spanish banking system is being crushed by the spike in Spanish sovereign yields. If you recall, last November when the euro crisis last flared, my...
Global Macro Monitor had good charts of the jobs report over the Easter weekend. I didn’t report on them because I was away for the weekend. But the first chart’s visual is similar to the one I showed you two weeks ago...
DIANE SAWYER: So you’ve been teaching the class. Just curious what– what’s– is there a question that made you stop and think the most as you’re teaching? CHAIRMAN BERNANKE: Well– you know, I’m talk–...
Bill Gross is out with his monthly commentary. Because his points are central to the discussion of policy and markets right now, I am going to write this weekly newsletter commentary outside the paywall. Below are the key...
A friend commented to me when he saw the story that Iceland had been upgraded by Fitch, the ratings agency, that this „sure makes default look palatable”. Obviously, Iceland is not out of the woods yet but their...
Here’s an excerpt of my answer at the New York Times: In Portugal, the government has adopted steep austerity measures as a condition of its aid package. However, the country’s economy will now shrink because...
This post is a special members-length weekly that I am making public because it is a continuation of the ideas for aGreek exit for the euro zone that I published on Friday. This post, however, also incorporates...