Germany’s benefit from the Greek crisis
The benefits tend to be larger than the expenses, even if Greece does not repay any of its debts.
sovereign debt crisis
The reduction in tail risks eases periphery sovereign debt crisis
BARCELONA | By CaixaBank analysts | Notable calm in the periphery’s sovereign debt crisis. Italy’s election and Spain’s budget figures will be the source of transitory turbulence.
I-told-you-so graphs for ECB worshippers
By Luis Arroyo, in Madrid | Very briefly: for those who have let themselves fall for the euphoria that unfolded after the European Central Bank governor Mario Draghi reported on unlimited short-term sovereign bond purchases, I would like to remind them of what happened during the last weeks of 2011 and the beginning of 2012. Back then, the ECB introduced its long-term refinancing operations, which were meant to inject liquidity…
US debt and the irrevocable euro
By Luis Arroyo, in Madrid | In this excellent analysis, Tim Duy forecasts a moderate but continued 2 percent GDP growth rate for the US unless global risks drag it down. But the debate over there seems to turn around what else could have been done to fill the gap the breaks open in 2008, as it clearly appears in the chart, between actual and potential real GDP. The dilemma,…
Everyone has forgotten the European Bank of Investment
By former director of the Catalan Institute for Finance, Ernest Sena | As if nothing had happened in Europe and the world over the past five years, the European Investment Bank continues working in the same line as it did fifty years ago. One must add that the EIB does very well what it does, nevertheless. The EIB is a key part of the European institutional framework. It was created in 1957 by…
“Euro recession in 2012 is inevitable, but euro breakup isn’t”
It provides trade credit insurance, surety and collections services, and has a presence through 160 offices in 42 countries. Atradius has access to credit information on 60 million companies worldwide and says that the consequences of a breakup of the Eurozone would be highly damaging for a country that leaves the euro as well for those that remain within the currency union. A breakup should therefore be perceived as highly…
Recapitalisation is a medicine that kills
