Whom the Gods Would Destroy -Edward Hugh (Don’t Shoot the Messenger) As I keep stressing, these days I have no central Euro scenario. There are only tail scenarios, where the debt crisis veers in either one direction or the other in a way which makes the eventual outcome very hard to foresee. In the case … Read more
July 7 – Nouriel Roubini discusses “greedy” bankers, the euro-zone crisis and risks facing the global economy in 2013. He speaks in Aix-en-Provence, France, with Bloomberg Television’s Caroline Connan.
The aftermath to last weeks EU summit has certainly proved to be a damn sight more perplexing than the actual summit itself. Contrary to earlier experiences, this time round the more the details have been “clarified” the more confused we have become. Just what exactly was approved? Will Spain’s banks really obtain capital directly from the ESM, and … Read more
The Pavlovian response of financial markets to the European leaders’ summit of 28 and 29 June 2012 was remarkable. The frugal communiqué of 322 words fired the “animal spirits” of financial markets, which now believe that the European debt crisis has been “solved”. As comedian Robin Williams joked: “reality is just a crutch for people … Read more
Talk of Finland leaving the EZ sooner rather than later has increased, with many in influential positions now reconsidering the costs and benefits of EZ membership and coming to the conclusion that a “Fixit” may be the country’s best option. Consider the following factors. First, the other Nordic countries are outside the EZ and/or the … Read more
Premier Wen’s recent attack on the Chinese banking system last month has highlighted what was already a very interesting debate on Chinese banks and the Chinese financial system. There is a growing sense that the Chinese banking system is deeply flawed and needs to be reformed.But why should China reform its banking – hasn’t the … Read more
Slovenia is in the news. According to press reports (and here) solving the problems which have accumulated in the country’s banking system may well mean the country is next in line for some sort of EU bailout assistance. Speculation was fueled last week when ECB Governing Council member and Bank of Slovenia Governor Marco Kranjec said that the country … Read more
An article in today’s beyondbrics blog argues that Mrs. Watanabe, who used to epitomize Japanese retail investors (who are usually housewives), has ended her longtime love affair with the Brazilian real. Her new lover is none other than the Turkish lira. This phenomenon has actually been going on for some time. I have a Nomura … Read more
I wanted to familiarize myself with the economic statistics in Ireland, so I thought that I’d share my findings with you all. Many politicians refer to Ireland as the poster child of austerity – according to the contentious thesis of expansionary austerity (a review from the IMF .pdf here), is it therefore the poster child of growth? … Read more
In his book What Money Can’t Buy: The Moral Limits of Markets, Harvard Professor Michael J. Sandel invites us to engage in a public debate on the proper role of markets in society. It is a question, he says, to which economists do not give enough thought. I agree. I am happy to join the … Read more