The Markets Starting To Take A Closer Look At The US
Via Dr. Constantin Gurdgiev of True Economics blog,
2013′s biggest Grey Swan might be not China’s slowdown or Euro area’s continued debt crisis (although both are pretty much still on the books, although the former is less likely than the latter). It might not even be the Japanese economic implosion (albeit Japan is sick beyond any repair)… oh, no… the real Grey [...]
From Naked Capitalism:
The more news comes out, the more it looks like Mario Draghi’s pledge that the ECB would do all it would take to save the euro was a bluff. The best guess is that he hopes to appease the market gods until September 12, when the German Constitutional Court will render its decision on whether the “permanent” rescue mechanism, the ESM, is permissible.
The assumption, of course, is the [...]
If or when policymakers finally decideGreece should leave the euro, the exit could happen so quickly that “new drachma” currency notes might not be printed in time.
In principle, some of the long-term consequences of Athens leaving the currency bloc are not unappealing. The euro zone would no longer have to worry about what has always been its weakest link. While a new Greek currency would almost certainly immediately crash in value as soon [...]
For a while now we have said that the very weakest link in Europe is not the banks, not the ECB, not triggered CDS, and not even the shadow banking system (well, infinitely rehypothecated Greek bonds within a daisychain of broker-dealers, which ultimately ends up at the ECB at a negligible repo discount, that could well be the weakest link – we will have more to say about this [...]
What is better than a one-front European war on insolvency? Why two-fronts of course. But not before many “soothing” words are uttered (no really). From Reuters: “Portugal’s international lenders arrived in Lisbon on Wednesday to review the country’s bailout, with soothing words of supportlikely to dominate as Europe gropes for success stories to counteract its interminable Greek headache. As the euro zone’s second weakest link, Portugal’s ability to ride out its [...]