EU Archive

U.S. and Eur Data/GDP Downgrades

Karim writes: U.S. data on the soft side (October) Most notable is core durable goods orders (capex has been gwth leader of late) falling 1.8% and 3mth annual rate slowing to 4% from 7.3% Core shipments (more important for current quarter growth) down 1.1% Personal spending up 0.1%. Personal income up 0.4% ...Read More

CNBC’s John Carney on Krugman and MMT

>    >   (email exchange) >    >   On Sat, Nov 12, 2011 at 2:19 PM, Stephanie wrote: >    >   John Carney loving on us again Yes! Paul Krugman Goes MMT on Italy By John Carney November 11 (CNBC) — It seems pretty clear that the school of thought known as Modern Monetary Theory has made a ...Read More

Marshall Auerback’s Euro Update Video

Marshal Aueback says: My latest attempt to explain it all. Is the ECB Europe’s Last Hope? ...Read More

Merkel comments

*DJ Merkel: “Euro Zone Solidarity Must Be Combined With Sound Budget Measures” To make sure unemployment never comes down and unit labor costs stay down. *DJ Merkel: Italy Will Put Through Planned Austerity Measures Soon Also to make sure unemployment never comes down and unit labor costs stay down. ...Read More

Talk still cheap – ECB writes the check again

Lots of talk, particularly from Germany about the ECB not writing the check, due to (errant) inflation concerns. But to no avail. In fact, with the Rubicon crossing decision to haircut Greek bonds 50% for the private sector’s holdings, expect the check writing to continue to intensify. And expect economies to continue ...Read More

Weidmann comments for MMT on Zero Hedge

ECB’s Weidmann Spoils The Party: Says Leveraging EFSF Violation Of EU Treaty, Warns Of Hyperinflation By Tyler Durden November 8 (Zero Hedge) — Trust the Germans in the ECB (those who have not yet resigned that is) in this case Jesn Weidmann, to come in and spoil the party: Weidmann, speaking in ...Read More

MMT, The Euro And The Greatest Prediction Of The Last 20 Years?

Thanks, Cullen!!! MMT, The Euro And The Greatest Prediction Of The Last 20 Years? By Cullen Roche November 7 (Seeking Alpha) —Being right matters. This isn’t emphasized quite enough in the finance world and in economics in general. Too often, bad theory has led to bad predictions which has helped contribute to ...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

France Unveils New Budget Savings as Growth Slows

May as well call it the Sarcophagus plan. It’s all they know how to do. And again, like the carpenter said of his piece of wood, no matter how many times I cut it it’s still too short. France Unveils New Budget Savings as Growth Slows By Alexandria Sagr November 7 (Reuters) ...Read More

Credit spillovers from Eur banks to EM

Makes sense. I always wondered how that loan demand was accommodated. Never looked like the kind of lending US regulators would sanction. Karim writes: Interesting table from JPM. Much larger dependence on credit from Eur banks for LATAM economies than from U.S. banks. Poland/Russia not as surprising but still large! Overall, domestic ...Read More