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Central Bank Sets Bond Plan Meant to Ease Euro Debt Peril - NYTimes.com - 0 views

www.nytimes.com/...unchanged-at-0-75-percent.html central bank sets bond plan ease euro debt nytimes nytimes com com
shared by Gene Ellis on 06 Sep 12 - No Cached
    • Gene Ellis
      Gene Ellis on 06 Sep 12
       
      ON the open market, mimd
  • The European Central Bank said Thursday it had agreed on a framework for buying the bonds of troubled euro-zone countries on the open market in unlimited quantities, but left the timing unclear.
  • In essence, the bank left the next step to the beleaguered governments. They would be required to ask the E.C.B. formally to begin buying their bonds in the open market and would have to agree to follow detailed conditions for paying down their debt and hewing to fiscal discipline. It would be up to the E.C.B. to determine whether the terms of the agreement were acceptable, and whether the government was meeting those conditions over time.
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  • Small companies in Spain and Italy pay more than 2 percentage points more for loans than their German counterparts, according to E.C.B. data.
  • The E.C.B. has already indicated that it will concentrate on buying bonds that mature within two or three years, rather than longer-term bonds.
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Merkel's good politics and bad economics - FT.com - 0 views

www.ft.com/...ed-11e1-a6c2-00144feabdc0.html
shared by Gene Ellis on 06 Sep 12 - No Cached
  • the ECB gears up to go full throttle into a business that, according to its statutes, is verboten: buying the debt of member states.
  • Of course, Mr Draghi mumbles about conditionality: cheap cash only in exchange for deficit-slashing and market reforms. Sure. And when Mr Monti and Mariano Rajoy, Spanish prime minister, instead bend to the wishes of their electorates, what then? Will Mr Draghi stop buying and let their bonds go through the floor? Of course not. You do not have to be a central banker to predict the obvious: no market pressure, no reform.
  • The ECB is about to turn into a money machine, into a lender of last resort, and damn the treaties that mandate an inflation-fighting commitment to “price stability”. The magic phrase now is “capping bond yields”, meaning the ECB buys up the debt of Italy and others in order to depress their borrowing costs.
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  • After the fall of the Berlin Wall, chancellor Helmut Kohl offered the D-Mark to President François Mitterrand in exchange for French acceptance of German reunification. This noble gesture of self-containment was not, of course, an entirely selfless act. As part of a hard-headed bargain in return for giving up the symbol of German economic primacy, Europe’s monetary and fiscal policy would be “Germanised”.
  • Otmar Issing, the ECB’s former chief economist, recalls how, before 1981, “the Italian Treasury set yields for government debt. All the bonds that couldn’t be sold at that price had to be bought up by the Banca d’Italia.” Hence easy money, exploding debt, double-digit inflation – and no change in the country’s frozen politics. Why reform when you can always devalue?
  • Look beyond the debt crisis and take the longer view. European growth has been slowing for 40 years. During this period its share of global gross domestic product has shrunk by 10 percentage points; that of the US has held steady.
  • Mr Weidmann is right to fear the moral hazard contemplated by the ECB and its lackadaisical allies from Madrid to Berlin.
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Italy's 'this time it's different' moment: With rejoinder by Giavazzi | vox - 0 views

www.voxeu.org/...rent-moment-rejoinder-giavazzi italy time moment rejoinder vox
shared by Gene Ellis on 05 Sep 12 - No Cached
  • Gene Ellis on 05 Sep 12
     
    Wyplosz - good article on self-fulfilling phrophicies
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Eurocrisis: on towards total catastrophe - Mail Online - M E Synon's blog - 0 views

synonblog.dailymail.co.uk/...towards-total-catastrophe.html
shared by Gene Ellis on 04 Sep 12 - No Cached
  • Gene Ellis on 04 Sep 12
     
    "catastrophe This is an edited version of my column in Monday's Irish Daily Mail -- "
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German Bundesbank Opposes Euro Crisis Strategy - SPIEGEL ONLINE - 0 views

www.spiegel.de/...-crisis-strategy-a-852237.html german euro crisis strategy spiegel online
shared by Gene Ellis on 29 Aug 12 - No Cached
  • Gene Ellis on 29 Aug 12
     
    Good Der Spiegel article of late Aug 2012
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Ways to accelerate private-sector deleveraging | Martin Wolf's Exchange - 0 views

blogs.ft.com/...ng-private-sector-deleveraging ways martin wolf exchange
shared by Gene Ellis on 27 Aug 12 - No Cached
  • Gene Ellis on 27 Aug 12
     
    The difficulties in financial de-leveraging.  Excellent piece.
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BBC News - Eurozone debt web: Who owes what to whom? - 0 views

www.bbc.co.uk/...business-15748696 debt eurozone Europe bbc visualization economy capitalism news
shared by Gene Ellis on 21 Aug 12 - No Cached
  • Gene Ellis on 21 Aug 12
     
    Good graphics.
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BBC News - What really caused the eurozone crisis? - 0 views

www.bbc.co.uk/...business-16290598 crisis eurozone debt economics europe euro eu finance
shared by Gene Ellis on 21 Aug 12 - No Cached
  • Gene Ellis on 21 Aug 12
     
    Good graphical treatment.
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U.S. Ports Seek to Lure Big Ships After Panama Canal Expands - NYTimes.com - 0 views

www.nytimes.com/...fter-panama-canal-expands.html u s ports ships panama canal nytimes nytimes com com
shared by Gene Ellis on 21 Aug 12 - No Cached
  • But, he said, containers loaded on the West Coast, which has built up its container yards and highway and rail infrastructure, can outrun those that travel to the East Coast by water, and that can make the difference when speed and dependability are more important than cost alone
  • Besides, he added, costs and fees can shift; Panama can be expected to raise rates for canal passage, and “the railroads are not going to sit idly by” and let the water route undercut their business.
  • After Hurricane Katrina, Gov. Haley Barbour of Mississippi trumpeted plans for a “port of the future” at Gulfport with a 50-foot-deep channel, redirecting some $600 million in federal housing disaster funds on a project he pledged would spur the economy and create bountiful jobs.
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  • To Robert Puentes, a transportation expert at the Brookings Institution, the problem of whether the ports are overbuilding for a Panama payoff is one of planning. “We are the only industrialized country on the planet that doesn’t have a comprehensive freight policy,” he said.
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E.C.B. Rejects Speculation About Its Bond-Buying Intentions - NYTimes.com - 0 views

www.nytimes.com/...ts-bond-buying-intentions.html
shared by Gene Ellis on 21 Aug 12 - No Cached
  • Gene Ellis on 21 Aug 12
     
    "A"
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