When it comes to what investors think will spoil the 6-year-old bull market, most point directly to the Federal Reserve.» Read More
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.
Some EU countries face the prospect of missing the budget deficit targets forced upon them this year by impatient bond investors, as tax revenue missed projections. The New York Times reports.
The European Central Bank should worry less about the “phantom risk” of inflation and instead focus on the rising threat of deflation which could result from a currency war, economist Nouriel Roubini said in an article for Roubini Global Economics clients.
Fast-growing nations like Thailand are trying to devalue their exchange rates to bolster their export-driven economies, reports the New York Times.
Despite the euro zone's recovery still looking very fragile, the central bank's key playmakers seem determined to talk about pushing policy back onto a more "normal" footing.
As the government of Prime Minster George Papandreou struggles to get the nation’s financial house in order — reducing the size of its bloated civil service, chasing after tax evaders and overhauling its pension system — it has also begun to tackle a much less talked about problem: the cozy system of “closed professions” that has existed here for decades, costing the economy billions of dollars a year.
The policy of easy money has created the current bull market for bonds, but investors should tread carefully ahead of the Federal Open Market Committee's meeting next month, Christian Gattiker, global investment strategist and head of research at Julius Baer, told CNBC Friday.
Despite mounting public protests across the Continent, an austerity drive unparalleled in modern, united Europe is building, reports the New York Times.
With Greece hitting its marks on the financial bailout earlier this year, it is now taking steps to streamline business and investment processes to promote growth, the country’s finance minister, George Papaconstantinou, told CNBC Thursday.
Another round of quantitative easing from central banks will not result in more lending from banks and won't help the underlying economic problems, Peter Toogood, head of investment at Old Broad Street Research, told CNBC Thursday.
The euro will keep rising and will likely end the year at up to $1.50, as the European Central Bank pursues a highly deflationary policy, despite buying euro-denominated bonds, economist Warren Mosler, founder and principal of broker/dealer AVM, told CNBC.com.
If there is any lesson the Germans should have learnt from two lost wars and the Great Depression, then it is that they must avoid inflation.