All I have read in the last 24 hours is how Spanish government bond holders have been subordinated to the ESM. And this in turn is being touted as the cause for the souring sentiment yesterday, after some short lived euphoria. I must confess, the relevance of this...
The details are not fully transparent, but the Spanish bank bailout - which was requested and granted in the same minute over the weekend - appears to have three VERY important components. First and foremost it is a BANK bailout, not a state bailout. It is early days...
It was Teddy Roosevelt that famously said, "Speak softly, and carry a big stick". Well, it appears the FOMC has no time for Teddy. Their stick is surely big, but their talk has been loud and clear. On the other hand, the ECB has taken a decidedly more Rooseveltian...
Yesterday I mentioned that I would come back with some quick thoughts on likely Fed and ECB triggers for action in the wake of the elevated crisis situation in Europe. As always, it will be hard to pinpoint exact tipping points for a move - but I suspect that if we...
One of the many bright trade ideas to start the year was long spoos/short EURUSD. The idea was quite compelling in that the only thing that could truly derail a Bernanke-induced spoo rally would be big trouble across the pond - and hence big trouble for the EURO. And...
The Euro monetary system is flawed. It is a system that was cobbled together for political purposes; and sadly it was set up in such a way that each member state retained significant sovereign powers - most importantly the ability to exit the system and default on...
The Euro monetary system is flawed. It is a system that was cobbled together for political purposes; and sadly it was set up in such a way that each member state retained significant sovereign powers - most importantly the ability to exit the system and default on debts in times of stress. There is virtually […]
