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.
|By: David Dayen 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.
|By: SouthernDragon Friday July 27, 2012 4:45 am|
A variety of links to articles/interviews/speeches on current topics that may be of interest.
|By: David Dayen 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.
|By: David Dayen 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.
|By: David Dayen 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.”
|By: Scarecrow 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.
|By: Dean Baker 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.
|By: Scarecrow 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.
|By: Dean Baker 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.