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Tag Archives: eurozone
QR 3/2018: How the Eurozone breaks
QR 3/2018: How the Eurozone breaks The Eurozone is a fragile financial mammoth. While its GDP lacks the US by around $3 trillion, assets of the banking sector are some 240 percent of GDP vs. around 90 percent in the US. It has been kept standing only through the large-scale asset purchase program (quantitative easing […]
Italy’s Stagnant Economy the Most Likely Trigger to Europe’s Existential Crisis
ITALY’S STAGNANT ECONOMY THE MOST LIKELY TRIGGER TO EUROPE’S EXISTENTIAL CRISIS With the focus on Turkey and the potential related fallout in other emerging markets in recent weeks, it is easy to forget about the Eurozone. Yet the current Italian government is likely to trigger a renewed existential crisis in the Eurozone once the Europeans […]
Italy Warns that Stopping QE will Lead to Collapse of Eurozone
Italy Warns that Stopping QE will Lead to Collapse of Eurozone Italy has called on the ECB to guarantee the bond yields warning that if they END quantitative easing the Eurozone will break apart. On this score, they are not wrong. The economic spokesman for the Italian governing party Lega has warned of a collapse of the […]
Deutsche Bank’s Troubles Raise Worries About the Future of the Euro Zone
DEUTSCHE BANK’S TROUBLES RAISE WORRIES ABOUT THE FUTURE OF THE EURO ZONE The euro banking sector is huge: In April 2018, its total balance sheet amounted to 30.9 trillion euro, accounting for 268 per cent of gross domestic product (GDP) in the euro area. Unfortunately, however, many euro banks are in lousy shape. They suffer […]
Greece Economic Crisis Declared Over: It Isn’t
Greece Economic Crisis Declared Over: It Isn’t Mainstream media is all aglow over the alleged end of the Greek economic crisis. Mainstream media is wrong. RTE says Greece Crisis Declared ‘Over’ as Eurozone Agrees on Debt Relief The BBC says Greece Hails ‘Historic’ Debt Relief Deal The Financial Times says EU Commissioner Calls End to […]
The Eurozone’s Coming Debt Crisis
The Eurozone’s Coming Debt Crisis The European Central bank has signaled the end of its asset purchase program and a possible rate hike before 2019. After more than 2 trillion euro of purchases and zero interest rate policy, it is overdue. The massive quantitative easing program has generated very significant imbalances and the risks outweigh […]
Italian Politics: The Calm Before the Next Storm
ITALIAN POLITICS: THE CALM BEFORE THE NEXT STORM Europe remains a potential source of angst for financial markets in the form of another existential crisis for the Eurozone. True, stock markets have relaxed over the past week in part because of relief that another Italian election has been avoided for now and in part because […]
It’s Now Clear: Five Star Lega Deal is a Commitment to Leave the Eurozone
It’s Now Clear: Five Star Lega Deal is a Commitment to Leave the Eurozone There was some confusion Tuesday over the exact wording of an Italian coalition agreement. The agreement is now clear. Italy Coalition Agrees to Leave the Eurozone I typically do not agree with Eurointelligence regarding views on what “should” happen. However, I […]
ECB Capitulates On Defusing Eurozone’s “$1 Trillion Ticking Time Bomb”
ECB Capitulates On Defusing Eurozone’s “$1 Trillion Ticking Time Bomb” In late 2017, the ECB surprised central bank watchers, briefly spooked markets, and angered many Italians, with its plan to eradicate what many have dubbed the “ticking time-bomb” at the heart of the Eurozone, namely the roughly $1 trillion in non-performing loans across European banks […]
Eurozone Banking Crisis – ECB Delays Rules for Bad Loans until 2021
Eurozone Banking Crisis – ECB Delays Rules for Bad Loans until 2021 The European Central Bank (ECB) has postponed its new guidelines for banks because if it did not, the Italian banking system would simply collapse. The ECB has given Eurozone area banks more time to adapt to new guidelines on how to deal with […]
Will Italy’s Banking Crisis Spawn a New Frankenbank?
Will Italy’s Banking Crisis Spawn a New Frankenbank? “Operation Overlord.” There are rumors currently doing the rounds that Italy’s banking problems have finally been put to rest. The FTSE Italia All-Share Banks Index has soared about 40% over the last 12 months, about double the advance by the Euro Stoxx Banks Index. Six of the […]
ECB Spawned Mass Culture of Financial Dependency that’s Now Very Hard to Undo
ECB Spawned Mass Culture of Financial Dependency that’s Now Very Hard to Undo Right at the front of the monetary welfare queue is the government of Italy. As the Eurozone economy continues to grow, pressure is rising on Europe’s biggest bond buyer, the ECB, to withdraw from the market, a process it has already begun. […]
EU Concern Rising About Italian Debt
EU Concern Rising About Italian Debt The EU Commission is deeply concerned that Italy is under pressure to spend frivolously because of the upcoming elections. The EU is apply more scrutiny for Italy’s huge sovereign debt. Because of the vast size of the Italian economy, the high level of total debt is a major cause for […]
Is There a Way Out of the ECB’s Trap?
IS THERE ANY WAY OUT OF THE ECB’S TRAP? The ECB faces the Devil’s Alternative that Frederick Forsyth mentioned in one of his books. All options are potentially riskly. Mario Draghi knows that maintaining the so-called stimuli involves more risks than benefits, but also knows that eliminating them could make the eurozone deck of cards collapse. […]
Germany Also Engages in Political Prosecution
Germany Also Engages in Political Prosecution The Alternative for Germany party (AfD) in Germany has asked the Federal Government to file a lawsuit against all decisions of European Central Bank (ECB) regarding the purchase of government bonds and corporate bonds as well as derivatives since 2015. They are petitioning to file in the European Court of […]
