Spain is on the bubble. The 10-year yield is pushing through 7% and 2-year yield is flirting with 5%. As we noted earlier, the entire curve and CDS pricing is above Ireland’s. The Spanish crisis is really...
1. The fact that access to the EFSF/ESM requires unanimous approval from the seventeen participants means that Merkel preserved the German veto. This circumscribes the victory claimed by Hollande, Monti and Rajoy. ...
Here is an under-appreciated irony: One of the underlying themes of the European summit is the erosion of sovereignty for the sake of integration. In the US today, the Supreme Court decision on President Obama’s...
The EU Summit will feature some growth measures, but little that will boost confidence that European officials will act to arrest the financial crisis. Even the road map to greater economic and monetary union appears to...
he Federal Reserve signaled disappointment with the economic performance and announced an extension of Operations Twist that was set to be completed this month. It will do another $267 bln selling of short-end and buying of...
In the five sessions through today, the Greek stock market has rallied 25%. Equity traders seem to have anticipated the election outcome. A new government is not yet in place, but many are still confident it will be...
Here is the link to a video interview I did earlier this week with John Auther’s of the Financial Times. Authers’ pens the Long View column at the FT. The interview gave me an opportunity to highlight...
There is a perverse logic unfolding. Spain is the fourth of the euro zone members to require external assistance. Cyprus is likely to be next, especially if Russia does not come to its aid as it did last year with...
The BOE lefts rates unchanged and chose not to increase its gilt holdings. The UK did report a better than expected service PMI today, but there was some thought it would respond to a series of other data that...
There driver of the capital markets today has a name: Fear. It has overwhelmed nearly every other consideration and is driving the dollar higher against all the major and emerging market currencies. Even the...