Recently Jörg Bibow was interviewed have tried to put the points in English stating that Mario Draghi’s announcement promise of ECB support for government bond markets seems to have calmed fears of an imminent euro breakup, at least for the time being. That does not mean the euro crisis is over though. Not at all, as the underlying problems remain largely unresolved. Liquidity can buy time but it cannot solve the imbalances inside the euro area and related debt overhangs that are the deeper cause behind the euro crisis. It is important in this context that the ECB promise is for conditional support. View full article »
Tag Archive: German
When you read history, you tend to read about historical events, about numbers, dates, and data. But it was people who drove those events, people making decisions on the basis of uncertain information, unknown consequences and frequently in the ‚fog of war. The opening quotation in Ahamed’s book is from Benjamin Disraeli: Read no history – nothing but biography, for that is life without theory. This perfectly sets the tone for what for me is one of the best treatments of the Great Depression I’ve ever read.
This account differs from others because it is told largely from View full article »
BANK runs don’t always involve small depositors queuing round the block. As we saw in 2008, institutions can withdraw
their money with devastating effect.
US money market funds are exiting the euro zone in what can only be described as a stampede. The rating agency Fitch says that the funds’ exposure to euro zone banks has dropped by 33% since May this year, and is now 78% down on its May 2011level. (French exposure is down 88% since May 2011.) Just over 8% of all their assets are now in the euro zone, compared with nearly 40% in 2009.
Britain, though not in the euro zone, has not been spared in the rush. Money market exposure is down 23% since May 2012 and 56% down on May 2011. Luckily, few banks View full article »
The first five years of the global crisis is over, investors flee from complex financial products in gold, silver and
commodities. Experts warn against a false sense of security. I was searching out for the bottom in my last post.
Everything seems perfect. The German stock index DAX has this week reopened the 7,000-point mark with flying colors , the record is missing just one of thousands. Unemployment is at its lowest level in 20 years. Of the two economic troubles, View full article »
The Euro cup 2012 is reflecting the crisis during the soccer mania when the fans chanting here is one of them between German and Greece as the financial crisis has spilled into this event, as of course it had to…
From the New York Times:
“Without Angie, you wouldn’t be here,” bellowed the German fans, referring to the multibillion-dollar bailouts Greece has received from European partners, first and foremost Germany.
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Quoting from the WSJ ”Germany opposes the issuance of jointly backed European bonds, arguing that they would allow inefficient, highly indebted economies to gain a free ride on the stability and favorable financial conditions secured by the more-disciplined countries. German officials have said that such bonds can be an option only once all euro-zone member states have improved the health of their finances and boosted their competitiveness.” To put the above in simple words we do not want to pay.
Indeed this was expected as I recently got the opportunity to interact with a German Professor for View full article »
It’s not a new story any more I hope I have written on this topic the maximum on my blog its huge series and contribution of the events one after the other. Why it is termed as a European Crisis ? Well going back to 2000 Euro a new currency was introduced to the European nations and the Germans love and affection for Deutsche Mark treated Euro as a stepfamily. They just forgot that the economy of Germany is export lead where as the other European economy are not so much competitive specially the PIIGS.
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