Category Archives: Euro zone Crisis

Last night the G-20 summit ended and the world’s leaders started to depart from the Mexican tourist destination of Los Cabos. As ever they issued a communique and I would like to draw your attention to this sentence in it which … Read More

Eurosystem gross lending to banks in euros rose by a further €23.4 billion last week, the largest weekly increase since March, consistent with continued deposit flight from the periphery, especially Greece and Spain – see last week’s post. A further … Read More

One of the reasons for reviewing yesterday the economic chaos that has been inflicted on Greece is to make it clear that the policies that were imposed on her have failed. Unfortunately those in charge in the Euro zone have … Read More

Over the weekend the financial world was waiting for news about Greece. She did get one nice surprise which was when her footballers defeated the highly rated Russian team to advance into the quarter finals of the Euro 2012 football … Read More

Spain has recently requested support from the rest of the eurozone to prevent its private banking sector from failing, which amounts to €100 million. In addition to the other PIIGS states Cyprus is now rumored to be in need of … Read More

By Kevin Murphy. Somebody will have to pick up the bill for Greece even if it is not its citizens. Policymakers often stand accused of indecision, timidity and a lack of imagination so The Value Perspective is happy to salute … Read More

Last night saw the third of the main ratings agencies downgrade Spain. The announcement is shown below. Moody’s Investors Service has today downgraded Spain’s government bond rating to Baa3 from A3, and has also placed it on review for possible … Read More

Eurosystem gross lending to banks in euros rose by a further €8.5 billion last week, consistent with continued deposit flight from the periphery, necessitating increased borrowing from the ECB and national central banks. Lending has increased by €52.8 billion over … Read More

The weekend just gone has seen the Kingdom of Spain join the countries in the Euro area which have called for international help to deal with debt problems. As ever the first casualty of such an operation was the truth … Read More

Proponents of the view that Greek economic prospects would be better if the country abandoned the euro in favour of a devalued new drachma often cite the recent relative performance of Iceland and the Baltic states. Iceland depreciated the krona … Read More