There is now a profound political gulf separating the US and Europe over how to deal with the Bank crisis. I don’t think it’s an exaggeration to say that a certain post-war concensus, the one that said ‘The US is in charge’, has now broken down. But that doesn’t mean either side is quite ready …
Sometimes mere coincidence can be telling. Yesterday and today two different actions were taken by the US Congress. Yesterday the Senate killed a bill which would have extended unemployment benefits past the current limit of 99 weeks. Then today, the Congress passed the Financial Regulation bill whose eventual shape even the financial press admits will …
Let’s assume that the plans our leaders now have in mind are implemented. Let’s tally up what that will mean for us in the near term, and ask what will we have at the end, to show for all the suffering, and will it have been worth it? I’m not talking about possible future developements. …
Stand by for another burst of Bank black mail. Both in Europe and the US. Here in Europe the second failure of Hungary’s debt auctions has prompted Willem Buiter of Citi, to tell the EU that it will have to double it’s bail out fund. 680 Billion is not enough he said. The ECB will …
We are getting very close to another blow out. Hungary had its second straight Bond auction failure. Hungary could not sell the amount it had tried to, even though it was paying a higher rate than the last time the market said no. This is NOT good. Hungary is not part of the EU so …
Politics for President Obama is going badly and is going to get worse. His ratings are low and the US media love to talk about ratings. For Americans, ratings are stats, stats means sports and sports means fun. It will be anything but, for Mr Obama. In my opinion a major part of Mr Obama’s …
I have been carping on about how pensions would be cut and the age raised for so long I had begun to bore myself. But today we get the first glimpse of the truth, in the UK at least. Pensions to be raised to 66 a decade earlier. Don’t believe it. This is just to …
Being a debtor in a crowd of debtors is one thing. Being a debtor in a crowd of people who are cutting back their spending is much more exposed and uncomfortable. That is where the US finds itself. At the G20 the US will talk of the need for unity. By which they will actually …
Portugal’s debt costs jumped again. Up nearly one percent in a single month. Up from 3.7% to 4.6% for 5 year debt. This continues the pattern seen for Spain and Italy. Both of them had debt costs jump recently. There is no denying it, European debts are sliding down the same slope Greece already fell …
In the previous post I wrote about the American season of pain and isolation. I thought I should even the score and make it clear I do not think the Europeans and GB are cruising to any sort of victory. The US is caught in a trap of its own making, tied, for the moment …
