German MP: ‘Draghi Is a Thief of People’s Savings’

Mario Draghi’s comments earlier today showing the ECB’s commitment to the euro to do whatever it takes to keep the single currency intact were greeted by most with a sense of relief. In a speech in London, Draghi said that it is completely within the ECB’s mandate to reduce sovereign bond “premia” if they are […]

Full text: Moody’s Downgrades Italy’s Government Bond Rating to Baa2 from A3, Maintains Negative Outlook

Editor’s note: Moody’s Investors Service issued the following press release in conjunction with a recent ratings action on Italian government bonds. Moody’s Investors Service has today downgraded Italy’s government bond rating to Baa2 from A3. The outlook remains negative. Italy’s Prime-2 short-term rating has not changed. The decision to downgrade Italy’s rating reflects the following […]

Is ECRI Changing its Story on Predicting a U.S. Recession?

I have Bloomberg copy and a video of a recent performance by ECRI’s Lakshman Achuthan on Tom Keene’s show. A lot of people have been pouring scorn on business cycle forecaster Achuthan because of his company’s recession forecast. I suspect most of it is driven by bulls annoyed by his downbeat forecast or by the […]

Germany Is a First Class Passenger on the Euro Titanic

I was on RT’s Capital Account on Monday afternoon, talking about the euro crisis yet again. The video is below but I have a few comments before you watch it. In the video, I say Europe can continue dithering for quite a while. There is no sense in making predictions about imminent euro zone destruction […]

The ECB’s Bagehot Rule Policy

Previously, this column argued that it was folly for the euro zone to take the bailout and austerity approach because it risked breaking the entire euro zone apart. Here, this column continues with a prescriptive outline of how the ECB can best meet its institutional mandate to help the euro survive by implementing a rules […]