SPANISH BONDS DROP AS INVESTORS LOOK CLOSER Worries about Spain’s finances intensified Tuesday as the country’s cost of borrowing on international markets rose despite expectations of a new round of austerity measures. Spain’s main stock index, the Ibex 35, shed almost 3 percent, to drop below 7,500 points, the lowest since March 2009 when the [...]
EUROPEANS MUST BORROW TO LIVE By David Oakley, from the Financial Times of London Markets and governments face an uphill struggle to fund themselves next year amid extreme uncertainty over the eurozone and the global economy, as new figures reveal that the borrowing of industrialised governments has surged beyond $10tr this year and is forecast [...]
The Euro is a currency that represents seventeen independent countries. Unlike the USA which is a federation of 50 states, where the Federal law is the same for everyone, the European Union is a group of independent countries, and laws differ in each country. This primary difference makes the common currency weak. Since many of [...]
EU Sets 50% Greek Writedown, $1.4T in Rescue Fund (Will it work?) By James G. Neuger and Stephanie Bodoni, from Bloomberg European leaders cajoled bondholders into accepting 50 percent writedowns on Greek debt and boosted their rescue fund’s capacity to 1 trillion euros ($1.4 trillion) in a crisis-fighting package intended to shield the euro area. [...]
Germany Shoots Down ‘Dreams’of Swift Euro Crisis Solution By Rainer Buergin and Tony Czuczka, from Bloomberg Germany said European Union leaders won’t provide the complete fix to the euro-area debt crisis that global policy makers are pushing for at an Oct. 23 summit. German Chancellor Angela Merkel has made it clear that“dreams that are taking [...]
Wall Street Sees ‘No Exit’ From Woes By Max Abelson, from Bloomberg Wall Street executives, facing demonstrators camped for a fourth week in New York’s financial district, say they’re anxious and angry for other reasons. An era of decline and disappointment for bankers may not end for years, according to interviews with more than two [...]
All of the E.U. “Leaders,†such as Merkel and Sarkozy, have been trashing about, going to meetings and giving press reports, while their staff has been writing zillions of e-mails to each other and the press concerning the disintegration or salvation of the Euro and the E.U. Everyone knows that the “Leaders†work for the [...]
EU Flags Bigger Losses for Greece Bondholders By James G. Neuger and Jonathan Stearns, from Bloomberg European governments dropped clues that bondholders may be saddled with bigger losses on Greek debt, intensifying market jitters that a second aid package designed to quell the fiscal crisis might unravel. Finance ministers considered reshaping a July deal that [...]
