The 17 countries of the Eurozone formally backed a new deal for fiscal management, one designed to “save the euro” but which can only help if a host of other measures fall into place, including any plan to actually boost growth on the southern periphery.
|By: David Dayen Wednesday November 30, 2011 8:30 am|
Six central banks took coordinated action to ensure liquidity for the global banking system. The European Central Bank, the Federal Reserve, the Bank of England and the central banks of Canada, Japan and Switzerland will provide lending of dollars to banks to ensure they can cover operations.
|By: David Dayen Tuesday October 25, 2011 8:00 am|
With the Euro nations needing resolution of the debt crisis, we’re seeing the outlines and the magnitude of the solution they’re working towards. A huge haircut for bondholders of Greek debt, a huge recapitalization of the banks who take the hit, and enough firepower in the bailout mechanism to keep the contagion spreading to Italy, Spain, and further. They may even ask the Chinese to help.
|By: David Dayen Monday October 24, 2011 9:15 am|
The Euro nations have set Wednesday as the new deadline for an agreement to resolve the Euro financial crisis. The basics including large haircuts for Greek bond holders, recapitalizing the banks who take the hit, and making the bailout fund large enought shield remaining Euro nations and stop the contagion. But critics are saying the plans are very risky and still avoid the real solutions.
|By: David Dayen Tuesday October 18, 2011 7:20 am|
Euro nations have been hoping they could agree on an adequate framework for shoring up their banks, and for some, their own credit, in the event an expected Greek default occurs. But claims of an agreement are still premature, and so markets are reacting to the continued uncertainty.
|By: David Dayen Thursday September 29, 2011 8:50 am|
The German Parliament approved an expansion of the European bailout fund, the EFSF, today, agreeing to a two month-old solution in the European banking crisis that has already been rendered obsolete. The sweeping nature of the passage, however, provided a signal to the world that Germany will meet responsibilities to Greece.
|By: David Dayen Monday September 26, 2011 2:10 pm|
The weekend ended without any dramatic announcement about a multi-trillion euro bailout for the banking sector. But the elements of the bailout are being prepped, even as the Greek people protest depressing austerity.
|By: David Dayen Saturday September 24, 2011 6:00 pm|
British newspapers are often sensational and sometimes wrong on big issues, so take this with a grain of salt. But the Telegraph reports that European leaders are constructing a “multi-trillion” euro plan to deal with the banking crisis that has gripped the continent. I very pointedly say “banking crisis” because we should wean ourselves off calling this a sovereign debt crisis. The sovereigns are the pass-throughs to European banks which made bad bets and still never resolved them from the financial crisis of 2008. That’s the problem being solved here: