The Euro In Trouble
The ECB has good reasons to be reluctant to embark on monetary tightening with anywhere near the same zeal as the Fed recently displayed. A bigger economic impact from the […]
Much Of Southern Europe Is Insolvent
Don’t take the recent euro strength at face value, it’s simply the result of US rates finally plunging to zero. Behind the euro facade is the fact that much of […]
Surprising Euro Strength
Italian public finances are rapidly becoming unsustainable without the ECB buying large quantities of its debt, the Merkel/Macron plan is no alternative. Without ECB buying large quantities of Italian debt, […]
Moment Of Truth For The Eurozone Is Approaching
With economies everywhere in a self-induced coma and rescue bazookas getting ever bigger, the effect on public finances is going to be epic. This is going to be difficult anywhere […]
Italy Is Too Big To Fail
The ECB shocked the markets last week by arguing it wasn’t in the business of “reducing spreads,” sending shockwaves through the eurozone. Events on the ground have moved so fast […]
The Market Is Not Done Selling
The situation on the ground in Italy is deteriorating fast, with growth coming to a complete halt. The debt/GDP ratio will rise further as a result of the expansionary budget. […]
Italy Versus The Markets, A Very Predictable Outcome
The Italian populist government is defying the markets at exactly the wrong moment, with growth and ECB bond buying waning. Its proposed budget will increase the already sky-high debt/GDP ratio […]
Fasten Your Seatbelts For Italy’s New Budget
Italy is likely to come back into focus for financial markets next month, when they will present their new budget. There are numerous plans circulating like a flat tax and […]
Meet The Perpetual Bailout Mechanism That Keeps The Euro Afloat
The creation of the euro has been flawed from the beginning; it’s most definitely not an optimum currency area. It has a tendency to expand differences, rather than diminish them […]
A Misplaced Rally
Markets reacted euphorically after the US job numbers and the installation of a new Italian government. We think they are misplaced on both counts, more especially on the Italian government. […]