Global recession in 2012 is “65 to 75 percent certain" and could deteriorate into a lengthy depression, Roger Nightingale, economist and strategist at RDN Associates, told CNBC on Monday.
The Celtic Tiger boom years, and the subsequent bust, have made Ireland seem like a basket case, with the recent history of its housing market consigned to economics textbooks forever as an example of a hugely overinflated bubble.
EU leaders yesterday rounded on the new Head of the IMF calling her comments on Europe 'misguided'. Christine Lagarde's assessment is certainly stark. The former French Finance Minister argues economies are now in a 'new dangerous' phase' that requires Europe's banks be forced to recapitalize in order to cut the 'chain of contagion'.
German “bad bank” agencies holding billions of euros of Greek debt have still to decide whether to join a bond swap designed to cut Athens’ refinancing burden as part of an EU bail-out, the FT writes.
In Jackson Hole Wyoming on Saturday Jean-Claude Trichet, the president of the European Central Bank was due to give a speech to a meeting of policy makers hosted by the Federal Reserve. As he prepared to speak the euro zone faced huge problems.
Following weeks of heavy losses for banking stocks across Europe, the Sunday Times in the UK reported Sunday that European officials are working on a "radical plan" to prevent a fresh pan-European credit crunch.
Forbes Magazine might have just put German Chancellor Angela Merkel on the throne for the "Most Powerful Woman" in the world, but at home her less exulted throne of government is shaking.
Germany is playing a cat and mouse game with less successful European economies as negotiations over the euro zone crisis continue at the country level, Giles Keating, head of research at Credit Suisse, told CNBC Friday.
The world could be heading into another fully fledged credit crisis, according to Satyait Das, the author of Extreme Money: Masters of the Universe and the Cult of Risk.
In any murder mystery film, it pays to watch the boring gray man (or woman) in the corner; quiet, unobtrusive characters can be deadly. So, too, in finance. Four years ago, the giant US money market funds seemed some of the dullest actors in the global financial scene. But in 2007, they quietly helped to spark the crisis in the mortgage-backed securities world.
Chris Wheeler, bank analyst at Mediobanca joined CNBC to discuss the latest news on the European markets and what would happen if the Greek bailout fails.
"Greece has most definitely been cut loose by the markets, the question is whether it will now be cut loose by the politicians," Steve Barrow, head of G10 research at Standard Bank, told CNBC.
Barclays is comfortable with its exposure to Europe and now has more cash on its balance sheet than before the 2008 financial crisis, CEO Robert Diamond told CNBC Wednesday.
The idea that Paulson needed a crisis in order to solve a bigger crisis could be seen by some as a post-game rationalization by the former official, but it raises some interesting questions for German Chancellor Angela Merkel and Europe's ongoing sovereign debt crisis.
On July 21, EU leaders agreed to a second bailout for Greece, one that was supposed to draw a line under the euro zone debt crisis and give the new government in Athens a chance come to grips with the huge debts it inherited when it was elected. One month later, and the situation appears to be getting worse rather than better, according to Simon Derrick, the head of currency research at Bank of New York Mellon.
"I think the German PMI announcement will have an impact on spread widening, because investors will see it as an indication that the world is slowing, Germany is slowing, and in general, risk is increasing," Adrian Schmidt, FX strategist at Lloyds Bank Corporate Markets, told CNBC.
Predictablity on the global political stage is failing to allay market uncertainty, says Vince Farrell.
Insight on how the euro can find stability again, with Frank Engels, Barclays Capital co-head European economics.
European leaders are being pushed into closer fiscal union sooner than they had anticipated by volatile markets concerned over a dearth of ideas on how to solve the sovereign debt crisis in the euro zone, analysts and investors told CNBC.
Euro bonds are exactly the “wrong answer” to the current crisis and would merely lead the euro zone to a "debt union" rather than a “stability union” according to German Chancellor Angela Merkel.