Michael Hudson: Global Financialization – The State of Play in Ukraine and Russia
Michael Hudson gives a wide-ranging interview on the state of financial capital, with emphasis on fresh events in Ukraine and Russia.
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Nathan Tankus: The Operational Issues of a Grexit Part One: Understanding the Payments System
The Greek ruling coalition and European politicians and bureaucrats say they want to avoid a Grexit, Nevertheless, it makes sense to examine that scenario. We start with the payment system and Target2 balances.
Read more...Creditors Reject Latest Greek Proposal, Tsipras Meeting with Merkel and Hollande in Doubt as Default Risk Rises
Greece’s creditors are not pleased, and perhaps more important, the Greek government has lost one of its few remaining advocates, Jean-Claude Juncker of the European Commission. The Eurocrats are finally waking up to the degree to which the two sides have talking past each other. The implication is that it is far less likely than they had believed.
Read more...Tsipras Fighting Two Front War as Revolt Within Syriza Intensifies, Forcing IMF Payment Delay, Cancellation of Negotiating Session
As Tsipras’ options narrow thanks to the revolt in his party, it is also becoming harder for even Merkel to forestall a default.
Read more...The Economics of Parallel Currencies
As Greece’s cash crunch continues and its negotiations are moving slowing and tending towards an impasse, it becomes more and more likely that the beleaguered borrower will issue some sort of scrip in order to fund operations while remaining in the Eurozone. How and how well might that work?
Read more...Satyajit Das: My Big Fat Greek Crisis
Yves here. Das published this post in February and I thought it would be useful to reprise it for three reasons. First, it has held up well to the passage of time. Second, for latecomers to the Greek saga, it summarizes the background, the stances of the parties, and key economic and financial considerations. Third, the section starting “Controlled Warfare” (about 2/3 of the way through the post) summarizes the consequences to the lenders of a Grexit. Those risks are why almost no one thought we’d wind up where we are now, with two sides issuing ultimatums a mere two days before a possible Greek default, and why most of the financial media still believes a deal will get done.
Read more...Greece’s Shortening Negotiating Runway and Possibly Erroneous Assumptions
Le Monde published a defiant op ed by Alex Tsipras over the weekend. The wee problem is that Greece is well past the point where political appeals will work.
Read more...Greece: An Endgame Finally in Sight?
The noose continues to tighten on Greece.
Read more...SEC Commissioner Kara Stein Issues Blistering Dissent on Waivers for Bank Recidivists
SEC Commissioner Kara Stein strikes again, this time to object to the SEC giving waivers to recidivist bank bad actors.
Read more...Matt Taibbi on Democracy Now: Banks Admit to Crimes, Pay $5 Billion, And Still No One Goes to Jail
So why shouldn’t banks admit to criminal conduct? They get slap on the writs fines and no one goes to jail.
Read more...Wall Street’s Nemesis, Benjamin Lawsky, to Resign in June
Yesterday was a sad day for American citizens. Benjamin Lawsky, the Superintendent of the New York State Department of Financial Services, announced that he was resigning in June.
Read more...Greece Cornered as IMF and ECB Refuse to Relent
A flurry of stories this weekend confirms that Greece and its creditors remain hopelessly at odds. The inertial path is to a Greek default
Read more...Greece Authorizes €750 Million Payment to IMF Despite Failing to Get Concession Sought [Updated]
Today, Greece blinked. But one unconfirmed report suggests the government got some eyewash.
Read more...Greece Finally Threatens Default as Deal with Creditors Remains Remote
A Greek default looms, but what does that mean for Greece and its creditors?
Read more...First Quarter GDP Likely Negative as Trade Deficit Soars
By David Dayen, a lapsed blogger. Follow him on Twitter @ddayen. Because of the blinkered way we talk about the economy in this country, news that the trade deficit widened in March well above consensus expectations will undoubtedly be met by cries that we must create more free trade deals to counteract that. Of course, […]
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