Greece Archive

German “wise men” (classic oxymoron) warn ECB is risking credibility

German “wise men” warn ECB is risking credibility By Alexandra Hudson November 9 (Reuters) — Germany’s “wise men” panel of economic advisers warned the European Central Bank it risks losing credibility by buying the bonds of heavily-indebted euro zone states, and that monetary and fiscal policy are becoming worryingly blurred. The group, ...Read More

For BTPS & SPGBs all inter dealer screens have gone blank

As previously discussed, it’s hard to see how anyone with fiduciary responsibility can buy Italian debt or any other member nation debt after EU officials announced the plan for 50% haircuts on Greek bonds held by the private sector. Yes, all governments have the authority, one way or another, to confiscate an ...Read More

News recap comments

The news flow from last week was so voluminous it was nearly impossible to process. For good measure I want to start today’s commentary with a simple recap of what happened. On the negative side – · Greece called a referendum and threw bailout plans up in the air taking Greek 2yrs ...Read More

Greek Vote Threatens Bailout

The obvious hasn’t been making the headlines: A no vote means a lot more immediate austerity than a yes vote. A no vote means Greece can’t borrow at all, and therefore govt. checks will only clear if Greece immediately cuts back to where it is only spending tax revenue. A yes vote ...Read More

Italy Bond Yields Rise at Auction, 10-Year Bond Auction Yield at New Euro Era High

Nice, they announce proposal to confiscate 50% of Greek bonds from investors right in front of an Italian auction. And we thought we had sorry politicians… ...Read More

Euro Bailout Fund Chief Sees No Quick China Deal

Now it all starts unraveling. It’s all talk- another ‘optical illusion’ with no operational reality I sight. The China participation isn’t a done deal. The 50% haircut isn’t a done deal either as they haven’t yet figured out how to actually do it without a default event. The EFSF contributions aren’t a ...Read More

Euro Zone Strikes Deal on 2nd Greek Package, EFSF

The markets like the announcement. Of course they also liked QE2… Unfortunately, as previously discussed, without the ECB the EFSF isn’t sustainable. It’s like trying to lift up the bucket by the handle when you are standing in it. Nor is it cast in stone yet, but all subject to details. Also, ...Read More

MERKEL: ECB INVOLVEMENT IN EFSF LEVERAGE RULED OUT

Looks like Merkel is speaking purely for political effect, which may be all she’s capable of, unfortunately. Fact is, from the beginning, without the ECB ultimately writing the check, it’s all been in ponzi. And like all ponzi’s, it seems to work on the way up, and disintegrates on the way down. ...Read More

Germany, the 10th plague

Ok, it’s a stretch, but the biblical story of the 10 plagues does come to mind. One by one various member nations have seen their funding taken away. The process begins with interest rates spiking to the point where, for all practical purposes, they can’t fund themselves without outside assistance. There has ...Read More

GERMAN COALITION SOURCES: MERKEL SAYS LEVERAGING EFSF VIA ECB IS RULED OUT

The news out of Europe has turned from mixed for the last week or so to troubling. On the one hand they seem to realize that the answer is the ECB writing the check, and on the other they seem to be saying they don’t want to do that. And on the ...Read More