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Debt of The Financial Sector
Here's a scary chart, one that I believe explains why the current Debt Crisis merits capitalization, and why it won't go away easily - certainly not by merely "printing" money and giving it to the FIRE...
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Debt Issuance: Boom to Bust
A short post today.First of all, may I wish everyone a very Merry Christmas and Happy New Year.Secondly, a rather interesting chart (click to enlarge) from the Bank of International Settlements (BIS)...
View ArticleIt's Been A While...
This is the first post in some months... but it's not that I've been away or extraordinarily busy. Rather, I've been "digesting" all that has been happening around the global debt crisis, particularly...
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Quo Vadis, EUropa?
France holds the first round of its presidential elections this Sunday and Greece has scheduled parliamentary elections for May 6, coinciding with the second and decisive round for French elections....
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Update on Quo Vadis EUropa..
The Socialist leader Francois Hollande won the first round of French presidential elections and is now the favorite to win the second and final round on May 6th. Polls show him leading Sarkozy by a...
View ArticleThe 60% Solution
There's an intriguing idea making the rounds in the Eurozone: issue Eurobonds backed by all the nations participating in the currency union, but only up to the amount stipulated by the Maastricht...
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Never Underestimate...
From an article in today's NY Times... “The market is massively short Europe,” said a hedge fund trader based in London not authorized to speak publicly. “There is just a feeling that it’s too late for...
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It's All About The Real Economy, (Stupid!)
The Eurozone Crisis... what is it about?a) Debtb) Deficitsc) Currency ratesd) None of the aboveThe correct answer is.. (d) none of the above. Because it's all about the Real Economy (tm), that's...
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Of Men And Their Donkeys
OK, Greek voters did what they could, never mind what they should. In last Sunday's elections they favored one of the pro-eurozone, pro-bailout parties, admittedly with a slim (if comfortable at...
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Debt Distribution
We know that debt is not equally distributed across our society. That is to say, lots and lots of people OWE debt but very few, proportionally, OWN it as an asset. For example, everyone owes equally...
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One Picture Is Worth A Thousand Marks (or Merkels)
Given what is going on in the eurozone at the moment, it is worth it to point out that the biggest beneficiary of the euro is Germany itself - and by very, very far. Data:Statistiches Bundesamt The...
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The "Real Economy" Makes The News
Well, darn it!, I feel vindicated at long last... I've been harping on the need to focus on the Real Economy (tm) for so long in this blog, I was beginning to feel like a "nut". Lo and behold, Reuters...
View ArticleJust A Quote
"Democracy destroys itself because it abuses its right to freedom and equality. Because it teaches its citizens to consider audacity as a right, lawlessness as a freedom, abrasive speech as equality,...
View ArticleBite The Bullet
Moody's just lowered the rating outlook for Germany, the Netherlands and Luxembourg to negative (currently AAA) because of the ongoing debt turmoil in Europe's South. In other words, Mrs. Merkel, if...
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Back From The Desert
It has been so long since the last post that I might as well have been perambulating in the desert! Which, in a way, I have.But, no matter, dear readers and friends, here goes.I have been trying to...
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Childhood's End
I admit it; I am, and have always been, a fan of classic science fiction. Thus, the title of today's post, a direct reference to the classic novel by Arthur C. Clarke, in which the Golden Age of The...
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Greece: What Sunk The Boat
Greece is for all practical purposes bankrupt, staying afloat only because its European partners and the IMF are continuing to extend loans until it can stand on its own - or finally sink to the...
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A Tale Of Two Depressions
The Greek crisis is often compared to the American Great Depression of the 1930's, usually because reported unemployment is currently so high in Greece, around 27%. It had reached over 30% in the US...
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The Big White Whale
In a comment to my post about Greek healthcare spending a reader (thanks rufus) urged me consider the "whale", i.e. the good old USA. So, here's a chart of such spending as a percentage of GDP for all...
View ArticleWiFi On The Fritz
We have just moved and our phone co. hasn't connected our wifi network yet... I'll be back asap, writing this from my phone... :)In the meantime, I'm watching developments in China very closely.
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