26th October 2011
The words "make-or-break talks" are much overused, but in this case they are justified. If Euro leaders "fail to come up with a deal that passes, history may look back on 26 October 2011 as the moment that triggered the final – and most dangerous – phase of the global financial crisis that began in the summer of 2007." The Guardian
As EU leaders huddle in Brussels to hammer out a debt rescue plan within the next 24 hours, "there are signs that the eurozone is already in recession – and dragging the UK with it." The Spectator
During the boom, governments force fed the banks their debt. Banks liked the yield, liked it being tier 1 capital and could sell it easily. The politicians liked being able to say "more pensions", "more child care", "more silicon implants" and so on." Fintag
Ben Casselman answers an interesting question on the dichotomy between US Gas and Oil Prices. "Why don't gas prices drop when oil prices fall? Because all oil prices aren't created equal." Wall Street Journal
James Galbraith talks about the state of the U.S. economy. "Unlike Europe there is no long-term [public] debt problem. We're clearly in a sustainable situation or the markets would not be giving the U.S. government the rates that they're giving it." The Big Picture
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