The Year Ahead in the Eurozone: Lower Risks, Same Problems

Financial conditions in the eurozone have significantly improved since the summer, when eurozone risks peaked because of German policymakers’ open consideration of a Greek exit, and the sovereign spreads of Italy and Spain reached new heights. The day before European Central Bank President Mario Draghi’s famous speech in London in which he announced that the […]

Is There a Case for Optimism About the Eurozone?

I know, we don’t generally do optimism here at Naked Capitalism. And truth be told, I’m having trouble accepting the Financial Times’ John Dizard’s argument that things are going to get better in the Eurozone. Admittedly, John has a taste for investing on the wild side: he’s typically recommending exotic trades in his weekly column. But his argument isn’t […]

The Troika’s Disaster

The new delay in the disbursement of the tranche of 44 billion from the “troika” (ECB, EU, IMF ) to Greece poses serious problems of economic and political nature to Greece, the entire Euro zone, but also to the International Monetary Fund. it threatens the solvency of the Greek banking system, for whose recapitalization about […]

Why a Greek Lifeline Is the Lesser Evil

Despite recent elusive gains, the Eurozone is teetering closer to the periphery cliff. The impending Greek default is forcing Germany, France, Brussels, ECB and IMF to unite – for the sake of Spain and Italy. Since the late summer, the uneasy tension in European markets seems to have subsided. Unfortunately, timeouts are brief and sweet. […]

Greeks Get Time but Not Money

Yves here. This post by Delusional Economics continues with his cataloguing of the slide of the Eurozone into an economic and political abyss. What is striking is the contrast between his matter of fact tone (which at this point is fully warranted, these self destructive actions have become depressingly routine) and the horror of what […]

ECB Preview: Watch Greece and Spain

The ECB is not likely to cut interest rates at Thursday’s council meeting. The focus, as is often the case, will be on the press conference. Here two countries will likely dominate the discussion Greece and Spain. In recent weeks there seems to be greater disagreement among the Troika on how to address the obviously […]