German Court Approves European Bailout Fund

By: Wednesday September 12, 2012 6:55 am

A German constitutional court has allowed the new European bailout fund, the European Stability Mechanism (ESM), to go forward, with only one condition that appears surmountable. The European Union breathed a huge sigh of relief Wednesday after a German court ruled Berlin’s approval of taxpayers’ cash to aid its deeply indebted neighbors was not unconstitutional, [...]

ECB Bond-Buying Confirmed By Second Media Outlet

By: Tuesday August 21, 2012 6:55 am

The European Central Bank spent most of yesterday rejecting any hope of an imminent intervention in the European bond markets, to put a cap on the spread between the yields of the cheapest and most expensive sovereign bonds. But Ambrose Evans-Pritchard of the Telegraph (UK) not only confirmed the existence of the program, but said [...]

ECB Floats and then Denies Mass Bond-Buying Scheme

By: Monday August 20, 2012 7:40 am

According to the German magazine Der Spiegel, the European Central Bank has floated a scheme to set limits on bond yields for sovereign debt among member nations in the Eurozone, essentially through a mass bond-buying program. The European Central Bank is considering setting limits on yields of euro area sovereign debt by pledging unlimited bond [...]

ECB Takes No Policy Action, Europe Tanking

By: Thursday August 2, 2012 7:05 am

Europe is tanking today after the European Central Bank’s Mario Draghi quite literally failed to put his money where his mouth is. Last week, Europe cheered when Draghi said in a press conference that the ECB would do “whatever it takes” to save the euro. He also said that the high bond yields in Spain [...]

Don’t Look Now, But Spanish Bond Yields Rising Again

By: Thursday July 19, 2012 11:35 am

We’re supposed to not care much about Europe anymore. The risk to the global economy has shifted to a struggling United States, say all the observers (and then Ben Bernanke blames the European situation for the US struggles, and everything folds in on itself). And indeed, Europe crossed one more hurdle today when the German [...]

Greece Nears Deal on Bailout, Will Accept More Crushing Austerity

By: Wednesday February 8, 2012 7:35 am

The Greek leadership closed in on a bailout deal yesterday that would add more austerity to the economically ravaged country. The negotiation consisted of the technocrat Prime Minister Lucas Papademos forcing the parties in his unity government to accept the terms. After a drama-filled few days as discussions were repeatedly delayed, (Papademos) had to persuade [...]

Analysts Fed Up With European Austerity Morality Play

By: Wednesday September 28, 2011 6:22 am

The Greek Parliament passed a property tax levy, the latest austerity measure imposed by Greece’s creditors as a condition for receiving the next installment of funding from the Euro bailout mechanism. Of course, a large part of Greece’s deficit problem is poor tax collection, so I don’t see how new taxes will ameliorate the situation; [...]

European Central Bank Intervenes to End Contagion in Euro Debt Crisis

By: Monday August 8, 2011 8:50 am

Stocks have fallen 2% in early trading, but recovered off session lows and are basically even with the lower opening. The Standard and Poor’s political gambit is certainly part of the story, but the crisis in Europe has driven stock prices over the past week or so. A discussion between the world’s leading finance ministers [...]

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