The Economist – The euro crisis: Europe’s Achilles heel Amid growing risk of a Greek exit, the euro zone has yet to face up to the task of saving the single currency itself THE respite in the euro crisis lasted a few short months. Now, despite a €130 billion ($169 billion) second bail-out for Greece,… Continue reading Greece
The Financial Times – Mark Carney: A cautionary tale of inflation and growth The financial crisis has shaken the world economy and prompted questions that strike at the heart of monetary economics. As governments, banks and households in advanced economies struggle to reduce debt, growth has plummeted. Weak growth is undermining efforts to repair balance… Continue reading Worrying About Inflation
Bloomberg.com – Bernanke Speaks About Risks From End of Pro-Growth Plans Federal Reserve Chairman Ben S. Bernanke spoke to a group of senators today about the potential harm to the economy from the expiration of several pro-growth policies, according to senators who attended the meeting. Bernanke discussed the scheduled end of programs including the Bush… Continue reading Bernanke Worries About The Fiscal Cliff
Zero Hedge – To Jim Grant The World Of Finance Is Nothing But The “Truman Show” While we have heard a lot from Jim Grant recently – all pointedly correct and substantial – today marked the pinnacle of propaganda-brinksmanship. Explaining to Maria B just why the world in which she lives, Bernanke-lovers-all, is nothing but… Continue reading Jim Grant Hits The Federal Reserve Again
Bloomberg.com – Facebook IPO Said to Get Weaker-Than-Forecast Demand Facebook Inc. (FB)’s initial public offering has so far generated lower-than-expected demand from institutional investors who are concerned about the company’s growth prospects, people with knowledge of the matter said. Some investors expressed reluctance after Facebook said on May 9 that advertising growth hasn’t kept pace… Continue reading This Was Not Supposed To Happen To Facebook
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Real Time Economics (WSJ Blog) – Fed’s Kocherlakota: New Rate Forecasts Can Create Conflict The Federal Reserve‘s decision to release the interest rate forecasts of its individual policymakers can lead to conflict with the institution’s official view on monetary policy, a U.S. central bank official said Wednesday…Chairman Ben Bernanke has observed the forecasts of the… Continue reading When Transparency Breeds Confusion
The Wall Street Journal – Robert Barro: Stimulus Spending Keeps Failing The weak economic recovery in the U.S. and the even weaker performance in much of Europe have renewed calls for ending budget austerity and returning to larger fiscal deficits. Curiously, this plea for more fiscal expansion fails to offer any proof that Organization for… Continue reading Austerity vs. Stimulus
The Wall Street Journal – How a Radical Greek Rescue Plan Fell Short After Greece’s May 6 elections left pro-bailout parties too weakened to govern the country, more elections are likely in June, with no guarantee a stable government will emerge. By next month, Athens must identify €11.5 billion, or $15 billion, in fresh spending… Continue reading Greece
The Financial Times – Nouriel Roubini: Desperately seeking a bailout for Spain and its banks No one can pretend to know whether Spain is illiquid or insolvent without gauging the size of the black hole that is the country’s banking sector. The Spanish government is finally starting to do this: Bankia and other banks are… Continue reading Spanish Banks
<Click on chart for larger image> The Wall Street Journal – Euro in the Eye of Continental Storm The euro zone is lurching from crisis to crisis but its currency seems immune to the chaos that surrounds it. The euro edged lower Wednesday to $1.2930 amid rising political uncertainty sparked by elections in Greece and… Continue reading The Euro
Bloomberg.com – CIC Stops Buying Europe Government Debt on Crisis Concern Gao Xiqing, president of China Investment Corp., said the nation’s sovereign wealth fund has stopped buying European government debt on concerns about the region’s financial turmoil. CIC will continue to look for new investments in Europe as part of its strategy to boost allocations… Continue reading China Sours On European Debt