In Sober Look, Marcello Minenna gives us a clue about a possible new breach in the euro’s structure. A few years ago (2011-2012), when the euro was going through its worst time, one of the consequences was that the central banks in the peripheral countries increased their debt position with TARGET2.
It’s strange that in the US there are so many people worried about the possibility that the country might end up being like Greece. There are other crazy people who make the comparision with Zimbabwe. Greece or Zimbabwe, well it depends on whether the threat is related to the state going bankrupt or to hyperinflation.
UBS | Positive developments for Greece and broader European assets Monday’s Eurogroup on Greece contained a number of positive developments relating to the country’s on-going programme review as well as debt relief. We expect those developments to support Greek and broader European risk assets, where we have argued for upside (see most recently “Which risks to fade; which risks to take” ).
Nick Malkoutzis via Macropolis | In the shapeshifting world of Alexis Tsipras, it is difficult to know where things actually stand. His relatively brief time in power is littered with skins that have been shed and vows that have been broken.
AXA IM | A number of political developments are likely to trigger volatility in 2016, especially around the month of June. However, the real risk lies in the longer term. For the first time since the 1950s, EU- scepticism is threatening the European project not just to stall, but to step back. Political risk in the euro area has taken a backseat in recent months.
Nick Malkoutzis via Macropolis | Greece’s Migration Policy Minister Yiannis Mouzalas could find himself out of a job or demoted soon because he slipped up in an interview. That his position is in peril for a verbal faux pas when others are going about their jobs unperturbed despite helping running the country into the ground is a pretty succinct statement on the interminable absurdity of Greek politics.
Nick Malkoutzis via Macropolis | After weeks of dancing around the issue, it seems that Greece and its lenders have started, even tangentially, to link the refugee crisis and the pending bailout review.
After the 2006 publication of his book “The Crash is Coming,” economist Max Otte became famous. In 2011 he launched another best seller, “Stop the Euro Disaster!,” which signalled the exit of Greece from the euro area and recommended that Spain return to the peseta. Otte has always argued that the euro has not united Europe.
Nick Malkoutzis via Macropolis | As symbols go, the imaginary pig’s head in William Golding’s Lord of the Flies requires little explanation. Its meaning is summed up in one line of the unnerving classic. “Fancy thinking the beast was something you could hunt and kill!” says the fly-infested head. “You knew, didn’t you? I’m part of you?”