ECB Bond-Purchase Gambit Does Not Have Consensus

By: Tuesday July 31, 2012 9:40 am

Mario Draghi can only say “we’ll do whatever it takes to save the euro” for so long before he has to, you know, do whatever it takes. But Draghi can only go so far without the support of the Germans, and that support looks tenuous at best.


ECB’s Mario Draghi Promises “Whatever It Takes” to Save the Euro

By: Saturday July 28, 2012 7:00 pm

European markets have surged over the last 24 hours, basically entirely due to a speech by Mario Draghi, the head of the European Central Bank. He said that his organization would do “whatever it takes” to save the euro, and that was apparently all it took.

Lakeside Diner

By: Friday July 27, 2012 4:45 am

A variety of links to articles/interviews/speeches on current topics that may be of interest.

Spanish Borrowing Costs Soar as Regional Government Finances Break Down

By: Tuesday July 24, 2012 5:22 pm

The Spanish 10-year bond yield keeps going straight up. It sits now at 7.62%, a high since the creation of the euro. They will need to return to the markets to sell bonds on August 2, and if the yields are at the same rate, it will be very difficult for them to finance them.

Monetary Easing in China, UK, EU Boosting Economies and the US Dollar

By: Thursday July 5, 2012 9:06 am

The Bank of England, People’s Bank of China and the European Central Bank all cut lending rates or added quantitative easing today, a near-global spurt of monetary stimulus designed to increase economic growth. Because the Federal Reserve hasn’t joined in, the dollar is growing stronger, which is bad news for US exports.

EU Fiscal Union Proposal Looks Down Right Terrible

By: Tuesday June 26, 2012 2:10 pm

The EU has come up with a plan, to be discussed at this week’s summit, to dramatically consolidate fiscal policymaking power in a Eurozone leadership figure, without authorizing the kind of fiscal transfers that would smooth over imbalances and make the currency union a true “United States of Europe.”

Europe’s Financial Elites to Greece: Drop Dead

By: Saturday June 16, 2012 5:00 pm

The New York Times has a lengthy, heart rending account of the suffering Greeks are going through as their economy collapses, money disappears, businesses close, and their ability merely to survive faces increasing risks. More here from The Guardian on the collapse of health care system.

If there had been an equivalent natural catastrophe — a massive tsunami or earthquake — the response to the human suffering on this scale would, one hopes, be entirely different. Whatever else y0u do, you save the people first.

But this human catastrophe — with echoes in Spain, Portugal, Ireland — was entirely man made by Europe’s financial elites.

Educating Thomas Friedman on the Economy

By: Wednesday June 6, 2012 12:20 pm

It’s a tough job, but someone’s got to do it. Today, Thomas Friedman tells us about the squandered opportunities around the world, siding with Angela Merkel’s lecturing to Europe and promoting the Bowles-Simpson scheme to redistribute income upwards.

ECB Declines to Lower Rates, Still Waiting for European Leaders to Act

By: Wednesday June 6, 2012 9:50 am

The European Central Bank announced today that it would not lower its bank lending rate from the current 1%. Although it’s not clear now much benefit a rate reduction would have achieved, observers had hoped the ECB would at least signal in some way it’s willingness to do much more to support the falling economies in Europe and particularly the Euro zone nations. But ECB head Mario Draghi threw cold water on that.

CEPR Co-Directors Call on Federal Reserve to Intervene in Spanish Bond Market

By: Tuesday June 5, 2012 8:55 am

Center for Economic and Policy Research (CEPR) Co-Directors Dean Baker and Mark Weisbrot issued the following statement today, calling for action by the U.S. Federal Reserve to contain the eurozone crisis. Weisbrot just returned from Spain, where he observed the impact of the crisis firsthand.

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