eurozone map

Yesterday, I reviewed the reasons why the Eurozone as a monetary union is a flawed construct and why the implications for a breakup are disastrous. I believe this is so much the case, that the odds of a Eurozone unwind are actually quite low. The breakup option is really the self-immolation option as all parties…

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greece

The Greek stock market is having a melt-up this morning, with the largest gains in 20-years. The index as a whole is up 14%, which isn’t bad for those who managed to get long Greek equities on Friday. And for more adventurous and daring sorts, the Cypriot stock market is up 18.5% this morning; Cyprus is leveraged…

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recession special

Well, the market clearly isn’t looking for the light at the end of the tunnel. Italian 10-YR bonds have surged, rallying 80 basis points (from a 6.09% yield on Friday to 5.29% yield today). Spanish 10-YR bonds have also surged, rallying 88 basis points (from a 6.03% yield on Friday to a 5.14% yield today).…

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chinese model

Crackerjack continues to hold the view, that what transpired in the markets is a crisis of confidence, more so than an actual crisis. There is a big and important difference. During the real-deal 2008-2009 economic crisis you had actual insolvent institutions as the value of mortgage securities declined when the US housing market imploded. The sovereign…

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light at end of tunnel

Fears of a Crisis Grow Interesting market reactions this morning. While many market participants are clearly being terrorized by a crisis of confidence (and this is always a risk) there look to be some genuinely better pieces of information. Markets are selling off based on rhetoric from the ECB. As we discussed yesterday, the ECB…

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rome

Click Here for Formatted Europe PDF “I think we need a bigger boat!” The words of Martin Brody, played by the late Roy Scheider, ring true today with regard to Europe’s spluttering attempt to avoid a sovereign debt crisis. Now that the side-show spectacle regarding raising the US debt ceiling (i.e., whether the US would…

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