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Tag Archives: sovereign debt

The world is running out of fiscal space

This is what global hot money sounds like… or put differently the “globalization of capital flows”… moving funds between asset classes and currencies to take advantage of changes in valuations and relative returns. Does this type of financial activity add to nation’s wellbeing or does it just represent a “skimming” of a  nation’s productive capacity? […]

Financial, economic and political linkages

The struggles that Greece is facing  to reform it’s fiscal situation are ones that Portugal, Italy, the UK, California, Illinois, New Jersey and others  will face… substantial debt loads with diminishing revenue sources and large social commitments… we’ll see this story be replayed over and over… and that doesn’t even take into account the potential nuclear […]

Unraveling the profit puzzle at Goldman Sachs II

The bits and pieces are being assembled into a mosaic which is revealing the true enablers of the global credit crisis… And it’s the trading houses like Goldman Sachs who created financial products, sold them off and then bet against the products they originally created… and often these bits of wizardry were designed to live off […]

Greece’s baby steps and Blanchard’s grand new solution

From Bloomberg: Fitch’s Rawkins says EU failed to ease Greek debt crisis … Mr. Rawkins says about Greece’s fiscal actions … “The problem with all those measures is that they take time…” Yes… when governments make fiscal adjustments it generally takes numerous quarters or years for the effects to have an impact on the economy… (of course […]

Country risk…

From FT Alphaville… ~~~ “Looks like Credit Suisse has jonied the conspiracy trying to undermine Spain. Here’s a ranking of countries by perceived risk, taking into account things like current account balances, public and private debt, and CDS spreads.  It comes from a note on the impact of sovereign risk on European banks, published on Wednesday […]

Political economy collides with capitalism…

Professor Joseph Stiglitz and Spanish Ambassador to the UK Carles Casajuana argue with a Hugh Hendry (of Electica Asset Management) who is betting on the Euro currency falling and failing.  Recorded from Newsnight, 09 February 2010. (HT 0/Hedge) From Project Syndicate: ~~~ “… We have compared the performance of the best-performing and worst-performing euro-zone countries between […]