After three years of burying their heads in the sand (for political purposes, I assume), Spanish officials finally asked for a €100 billion bailout for their country’s banking system. I…
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Posted in Global Economy
Tagged bailout, euro, European sovereign debt crisis, Eurozone, Spain
The German government can now borrow money for two years at 0.00%. German T-bill rates are negative. Investors are paying the German government to protect their short-term money. Should we…
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Posted in Global Economy
Tagged bonds, euro, Eurozone, Germany, Greece
Last week, I talked about the risk that Europe might sleepwalk into a deeper and more widespread economic slump. As of now, the news is hardly more encouraging. Greece is…
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Posted in Global Economy
Tagged euro, European Central Bank, Eurozone, Germany, Greece, PIGS
There’s a joke going around that you may have heard, but you may not have heard why it’s funny. The joke goes, “A Greek, an Italian, and a Spaniard walk…
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Posted in Global Economy
Tagged currency, euro, Europe debt crisis, Eurozone, fiscal policy, Germany, Greece
Repeated efforts to unite Europe under a common vision mark the strained history of the continent. What neither Napoleon’s cannons nor Hitler’s tanks could accomplish by force was supposed to…
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Posted in Global Economy
Tagged bonds, debt, economic policy, euro, eurobonds, Europe debt crisis, European Central Bank, European Union, Eurozone