> > (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 big impact on […]
Tag Archives: Bonds
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 to slow under […]
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, which advises the […]
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 investors funds. But […]
Noda Makes Consumption Tax Hike Pledge At G-20 Summit
The world’s poster child for losing decades looks to stay a step ahead: (Nikkei)–Prime Minister Yoshihiko Noda vowed Thursday to gradually raise the nation’s consumption tax to 10% by mid the 2010s during a summit meeting of the Group of 20 leading economies in Cannes, France. The announcement at the summit has effectively made the […]
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 means Greece can […]
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…
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 done deal either. […]
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, the positive market […]
Monoline proposal
Fed by itself or working with AAA counterparty offers to sell supplemental bond insurance to investors. (AFLAC concept) Maybe charge a point and insure up to a price of maybe 99, or whatever combo works. Worst case the current insurers are downgraded to AA, so they should still be able to cover losses, so risk […]