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Tag Archives: Euro
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Stiglitz: The Euro May Not Survive
3 Oct
The Columbia Business School-professor, makes the arguments in an updated edition of his book on the credit crunch, Freefall. In the new material, exclusively extracted in the Sunday Telegraph, he reveals his fears.
The European Central Bank in Frankfurt - via Flickr.
“The different needs of countries with high trade surpluses, particularly Germany, and those running deficits such as Ireland, Portugal and Greece, meant that the single currency was under intense pressure and may not survive. He suggests that one way to save the euro would be for Germany to leave the eurozone, so allowing the currency to devalue and help struggling countries with exports.
“Countries that share a currency have a fixed exchange rate with each other and thereby give up an important tool of adjustment,as long as there were no shocks, the euro would do fine. The test would come when one or more of the countries faced a downturn.”
More here.
European Banks Playing Moral Hazard?
23 AugImage by phault via Flickr
“Eurobulls would say it that the stress tests gave the banking system a clean bill of health. Perhaps. It also seems likely that having once once stood at the edge of the abyss, we now now what Euro leaders/ECB will do (perform a bailout). That theory is not airtight, since it would seem reasonable to counter-argue that if the market were totally under the spell of moral hazard, then the PIIG bond yields wouldn’t be blowing out.
Maybe. But it’s clear that while the freakout is coming back to Greek and Irish debt, the contagion fears appear minimal.”
Read more on The Business Insider here.
Greek debt via PragCap.
Yet, Deutshe Bank say: No risk of a recession just yet:
Wrapping The Day
30 Jul
The Wall Street Journal: How Gangsters Are Saving Euro Zone.
MarketWatch: Stocks Beat The Heat In July.
Bloomberg: Most U.S. Stocks Rise as Confidence Overshadows GDP.
The Financial Times: Europe’s centre-right leaders face a struggle.
Reuters: Emboldened RIM readies new touchscreen BlackBerry.
BusinessWeek: Oil-Rig Workers Gain Whistleblower Protections in House Bill.
AP: Greece turns to military to restore gas supplies cut by strike.
Forbes.com: Six Ways To Avoid Capital Gains Tax.
Cato Institute: “Even Keynesian Accounting Can’t Find All That ‘Stimulus’”.
Wall Street marks best month in a year in July – Dow added 7.1 %, the S&P 500 rose 6.9 % and Nasdaq gained 6.9 %. Stocks rally as worries over Europe ease; dollar, gold fall.
Market Links
30 JulBloomberg: China’s Ship-Financing Drive Hindered by Tax Rules.
Financial Times: Three years on, the markets are masters again.
BusinessWeek: Li Ka-shing Group in $9.1 Billion Bid to Buy EDF Unit.
BBC: UK tightens bankers pay rules.
Barrons:Economic Report: Euro-zone jobless rate steady, inflation picks up.
SmartMoney: Euro Rises to Level Not Seen Since EU-IMF Bailout.
FoxNews: Small Business Lending Plan Blocked in Senate.
CNN: Exxon, Watch out for Apple.
WSJ Markets
- Tip Puts Lobbyist's Career on HoldMark Hayes was a Washington policy wonk on a long and steady ascent. A series of emails to a client was all it took to put that carefully crafted career on hold.
- Wall Street's Giants Try 'Flow Monster' FormulaFor all the talk that "Wall Street is back" from the ravages of the 2008-2009 crisis, there are signs that the financial industry is undergoing a profound transformation, writes Francesco Guerrera.
- New Rival Emerging for Bloomberg ChatThomson Reuters and Markit, rival data providers, have teamed up with investment banks to build a new messaging service to challenge competitor Bloomberg LLP.
- Plight of the NavigatorsMartin Essex discovers who is making waves as a top stock picker in this first Europe's Best Analysts survey?
- Silver Recovers After SwingsSilver earned its moniker as the "Devil's metal" with a day of whipsaw trading that took prices to their lowest level since September 2010.
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