The bond market has turned into a punching bag for big investors, but strategists don't see yields moving much higher for now.» Read More
The EU bailout for Irish banks failed to quell financial markets. Borrowing costs for Portugal, Spain and others continue to rise, because structural problems created by the euro and single European market remain unaddressed and more crises are inevitable.
There are clearly two perspectives emerging on Europe's problems and this chasm in perspectives will become more clear as time goes by. The budget minded nations are reigning in the less disciplined sovereigns. Solvent Europe vs. broke member nations.
When it comes to the housing market in California and peoples' ability to purchase homes, California still isn't doing very well. But the state's second largest private lender is growing by leaps and bounds. But it will take a lot more than his success to create a real market recovery.
Here's the disturbing headline statistic: Portugal, Ireland, Greece, and Spain have sucked out 93 percent of the total liquidity taken from the ECB and other central banks.
Any bailout of Spain could severely stress the ability of Europe’s stronger countries to help the financially weaker ones, and spell deep trouble for the euro. The New York Times reports.
Nations are left with old playbooks and fewer choices by which to resolve their respective problems. This means that time, devaluations, and debt restructurings might be the only way out for many nations. It also means the citizenry will require politicians that can think outside of the box and act with greater unity and resolve than perhaps they are used to.
Things are getting better in the long term when it comes to the banks and Europe, H. Rodgin Cohen, senior chairman at the law firm Sullivan & Cromwell, told CNBC Wednesday.
As Irish and European officials engaged in tense talks over the terms of a multibillion dollar rescue package, Ireland’s Prime Minister Brian Cowen sais its low corporate tax rate and four-year budget plan, the New York Times reports.
Market commentators and Warren Buffett followers have been buzzing after seeing the Oracle of Omaha's op-ed piece featured in The New York Times. ...A report from TheStreet.
"We have too much private debt in the case of Ireland," according to Nouriel Roubini.
European shares are indicated to open flat Friday, ahead of a conference at the European Central Bank in Frankfurt where Fed Chairman Ben Bernanke and ECB President Jean-Claude Trichet will both speak.
The Irish banking crisis illustrates the euro makes little sense, because the EU lacks taxing, spending and regulatory authority critical to managing a modern economy.
As I head over to the Cato Institute's Monetary Conference, European stocks are rebounding on news that the European Union and International Monetary Fund could soon announce an aid package for Ireland.
Much of the economic focus this week has been on the group of 20 leading nations summit in South Korea, yet something equally significant has been happening in Europe, Pimco's Mohamed El-Erian writes in the FT.
Patrick Honohan, Ireland’s central bank governor, on Wednesday put a “For Sale” sign over the country’s ailing banks, stressing that foreign ownership of the troubled sector was “not as far-fetched a scenario as it might appear to some”, reports the Financial Times.
The rumbling crisis over the integrity of the eurozone has entered a new and ominous phase, with economists and bond market investors questioning the ability of “peripheral” European economies to stay in the euro without yet another rescue package. The FT reports.
The United States should tax purchases of yen, yuan and euro used to import goods from those three economies. Set it at about 40 percent until the Gang of Three agrees to acceptable exchange rate reforms.
When interest rates soared last week on Irish government bonds, it served as a warning to other indebted nations of how difficult it could be to roll back decades of public sector largess. The New York Times reports.
I'm ashamed to say world markets may again need to go on Europe Watch. The risk has risen to a level that local nerves over sovereign debt will fray to the point that they have a material impact elsewhere.
Covered bonds, a financing tool that has been popular in Europe since the 18th century, are winning converts here as a new way to finance residential and commercial mortgages, reports the New York Times.