Spain Could Agree to a “Credit Line” Rather Than A Bailout

By: Tuesday October 16, 2012 10:45 am

Markets in the US and Europe rose today on this Financial Times story, suggesting that Spain would submit to a bailout request. The stabilization of sovereign debt yields in Spain as well as the anti-austerity forces threatening the political class raised hopes that Spain would not take this step. And it’s still a very dicey [...]

Greece Proposes Another Austerity Budget, Its Lenders Decide It’s Not Cruel Enough

By: Tuesday October 2, 2012 8:46 am

The Greek government submitted a draft budget for next year that would only further increase the pain and suffering directed at the population, despite depression conditions. But the European leaders determining whether the fresh austerity plan is good enough to meet their conditions want even more pain, in the form of deeper wage cuts. First, [...]

Obama Administration Works to Delay Greek “October Surprise”

By: Friday September 21, 2012 8:59 am

Rumors are rampant today that Spain will accept a rescue program from the EU, which would pave the way for a bond-buying program from the European Central Bank to commence. This could merely be part of the pressure campaign on the Spanish government to request the bailout and submit to the conditions. Spanish bond yields [...]

Spain Resists Request for Aid from Europe, For Now

By: Thursday September 6, 2012 1:12 pm

So how did the principals react to the European Central Bank’s conditional bond purchase scheme? Well, the German press went nuts but that’s to be expected. More interesting was the reaction of Spanish Prime Minister Mariano Rajoy. As you may now if you’ve been following my stories on this subject, the idea behind the ECB [...]

ECB Bond-Buying Program a Balancing Act Between Leverage and Rescue

By: Monday August 27, 2012 8:55 am

The Wall Street Journal has more confirmation that the European Central Bank will consider rate targets to keep the spreads on bond yields manageable for its member states. The central bank wants to help bring down government financing costs through targeted purchases of government bonds, while preserving their flexibility to change course when needed and [...]

Greece Drops Plan to Renegotiate Bailout Terms

By: Friday July 6, 2012 10:15 am

The way the Greek election worked is that Syriza, the far-left party, said they would completely renegotiate the bailout terms that forced austerity on the country. New Democracy, the center-right legacy party that was part of the grand coalition that negotiated the bailout in the first place, countered that they too would seek a renegotiation, [...]

Greece Asked to Destroy Itself In Exchange for Bailout

By: Monday February 6, 2012 6:55 am

Greek bailout talks have deadlocked again, but at the moment the culprit is not the hedge funds seeking a higher payout on the distressed debt they bought, but the “troika” of the EU, ECB and the IMF. They gave Greece a Monday deadline to accept bailout terms. And those terms, frankly, are totally insane. The [...]

Euro Crisis Focus Now Turns to Italy

By: Monday November 7, 2011 6:55 am

Now that the troika – the European Union, European Central Bank and the International Monetary Fund – has manhandled the Greek political system, they will probably turn their attentions to Italy. Despite the deal reached a couple weeks ago to “save the euro,” Italian bond spreads (the difference between German and Italian bond rates) keep [...]

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