Greek Option: NOT Growth vs Austerity
Posted by Larry Doyle on May 8th, 2012 8:07 AM |
Growth vs austerity.
Who would not choose to increase economic growth as the path to future economic prosperity.
The election results in France and Greece over the weekend were a clear repudiation of the austerity packages negotiated earlier this year as the precursor for further German support and the European Central Bank’s LTRO (long term repo operation). That financing directed at European banks was little more than another version of the shell game that has been orchestrated by Bernanke and Geithner on this side of the pond. (more…)
Tags: choices for Greece, derivatives exposure to European banks, elections in EU, Greece civil unrest, Greece social unrest, Greek election, growth vs austerity, long term repo operation, LTRO, results of elections in France and Greece, the breakup of the Euro, what is LTRO, will Greece leave the euro, will the EU break up, zombie banks in Europe
Posted in Euro, European Union, General, Greece | 1 Comment »
Who/What is Driving European Sovereign Spreads?
Posted by Larry Doyle on April 27th, 2012 9:11 AM |
The center of our global financial crisis squarely rests upon the Euro-zone in general and a number of peripheral sovereign states specifically. The movement in spreads within this market are often vicious.
The European Central Bank has thrown the kitchen sink in the form of its 3-year LTRO (long term refinancing operation) at the massive debt problem. The LTRO aside, do you get the sense that there is a far greater force at work behind the scenes driving these markets? I do. Who and what are really driving spreads within the Euro-zone?
Let’s navigate as the Journal of International Money and Finance addresses this critically important topic in its April 2012 issue. (more…)
Tags: Anne-Lauren Delatte Rouen Business School, Antonia Lopez-Villavicencio of University of Paris North, ban on naked CDS, cds vs cash basis, cds vs underlying cash bonds, credit derivatives, EU, Euro PIIGS, Euro-zone, European CDS, European PIIGS, European sovereign spreads, European Union, France sovereign spreads, Goldman Sachs, Greece sovereign spreads, Ireland sovereign spreads, Italy sovereign spreads, Journal of International Money and Finance, JP Morgan, long term refinancing operation, LTRO, Mathieu Gex University of Grenoble, naked CDS, PIIGS, Portugal sovereign spreads, Rouen Business School, sovereign spreads in Europe, Spain sovereign spreads, speculative trading of CDS
Posted in Euro, European Central Bank, European Union, General | 1 Comment »