The spreads for Europe’s economically weak peripheries over equivalent German bonds—the European benchmark—continue to approach their pre-bailout highs. The 10Y spread in Spain again reached record levels amidst rumors that IMF, EU and the U.S. Treasury may be creating a EUR250bn credit line for the country (so far the EU and the Treasury department have […]
Archive:
Crisis
European equity markets and the Eurozone currency look to be pricing in separate outlooks for the future of the Eurozone after an unprecedented rescue package. As the chart below highlights, European equities as tracked by the MSCI European index has rebounded sharply from its pre-bailout low–surely aided by the ECB’s recent actions–, while the Euro […]
This piece is simply an updated version to a piece I published back on March 5th 2008 titled ‘How will it end’. Despite the fact we are much deeper into this financial crisis; the root of the problem has not changed, and that is the US housing market. As an interesting exercise consider that in […]