The European Central Bank must act as a last resort lender, or else
Markets
Spain is not Japan: banks should reprice their real estate assets now
What Santander makes of the euro summit
ECB's nefarious attitude: Mr Wolf is right
By Luis Arroyo, in Madrid | In case you needed tangible proof of the harmful role the ECB played in the crisis, in the FT, Martin Wolf writes an open letter to Trichet’s imminent successor to the presidency of the ECB, Mario Draghi. The letter is an excellent article that convincingly explains why the ECB should stabilize the debt markets of solvent countries such as Italy and Spain, which are the…
ECB’s nefarious attitude: Mr Wolf is right
By Luis Arroyo, in Madrid | In case you needed tangible proof of the harmful role the ECB played in the crisis, in the FT, Martin Wolf writes an open letter to Trichet’s imminent successor to the presidency of the ECB, Mario Draghi. The letter is an excellent article that convincingly explains why the ECB should stabilize the debt markets of solvent countries such as Italy and Spain, which are the…
Recapitalisation is a medicine that kills
Markets love inflation
By Luis Arroyo, in Madrid | Look at the USA. In the graph above, left scale, the yields (spreads of Treasuries) of BB corporate bonds (red line), and B (green line). Right scale, blue line, inflationary expectations (type of bond at 10 years minus the same inflation protected). A functional relationship can be detected between the variations in inflation expectations and private bond yields. The higher the expected inflation, the…
In the US, confidence falls but consumption rises: what's happening?
In the US, confidence falls but consumption rises: what’s happening?
OWS quotes from NYC
We've selected some comments from Saturday's demonstration in Times Square. Achei (African American, employed, in her 50's): “This young people who have gone to school and took a loan they can't pay back because they don't have any jobs to pay back. People who bought their homes are getting foreclosed, they're getting thrown out of their houses.” Gerry Crane (American, employed, in his 60's, has helped the Green Party): “A famour author,…