Category Archives: Currencies

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.

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.

Greece: An Endgame Finally in Sight?

The noose continues to tighten on Greece.

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.

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.

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.

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

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.

Greece Finally Threatens Default as Deal with Creditors Remains Remote

A Greek default looms, but what does that mean for Greece and its creditors?

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, […]

Eurogroup Demands Varoufakis’ Ouster; Trajectory Toward Default Continues

In case you had any doubts that Greece is supposed to act like a good debt vassal, the Eurogroup’s hissy fit over Yanis Varoufakis at last Friday’s meeting, which stoked a raft of unflattering articles, has now led it to demand to that Greek government remove him.

Greece Talks With Eurogroup Hit “Complete Breakdown”

The Greek negotiations with the Eurogroup are exemplifying the saying, “Things look the darkest before they go completely black.”

Joe Firestone: Another Danger of the TPP: It Sacrifices Monetary Sovereignity

Yet another reason to hate the TPP.

Wolf Richter: The Greek People Just Destroyed Syriza’s Strategy

Greek stocks ventured deeper into purgatory. The ASE index dove below 700 intraday on Wednesday for the first time since the crisis days of June 2012. Then word spread that the ECB had raised the cap on the Emergency Liquidity Assistance for Greek banks by €1.5 billion to €75.5 billion. It’s the oxygen line for Greek banks. Without it, they’re toast.

Pettifor Warns of GFC 2.0 Approach

Yves here. This is a short but important debate over how much to worry about the upcoming train wreck in emerging markets when the Fed finally gets around to tightening. Pettifor sees it as a potential global crisis event; Macrobusiness sees it as a typical emerging markets bust. The Pettifor viewpoint seems more on target. First, […]