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Will the euro band-aids stick this time?

Another weekend, more band-aids. Will the latest round succeed in convincing financial markets that the bleeding in the euro has stopped when earlier applications have failed? The results this morning are mixed. The extent of this round is impressive. First, of...

So what happened to the euro relief rally?

Ireland formally appealed for a rescue by the European Union and the International Monetary Fund on Sunday November 21. The European Union and IMF quickly agreed to the request. Irish Prime Minister Brian Cowen said he expects talks on the package to be completed in...

Now it's Ireland's turn to rattle the euro

The Irish crisis keeps getting deeper—at least as judged by spreads on Irish government bonds. Yields on Irish government bonds hit records on Tuesday, September 28. The yield on the 10-year government bond climbed by 0.25 percentage points on the day to 6.72%....

Now it' Spain's turn to depress the euro

More worries for the euro. This time from Spanish politics. Prime Minister Jose Luis Rodriguez Zapatero has set a September 30 deadline for announcing his government’s budget plan. Investors want to see a combination of taxes and spending that reduces Spain’s budget...

The return of worries about the PIIGS weighs on the euro

Good news: Ireland isn’t Greece. Bad news: Ireland isn’t Spain, either. At least that’s what Standard & Poor’s concluded on August 25 when it cut the credit rating on Ireland’s sovereign debt one step to AA-. S&P is worried that the cost of re-capitalizing...

Euro (central bank) politics kill the euro rally–dead

If this is what a euro hawk is saying now, the European Central Bank will be in the emergency lending business well into 2011. That would match the U.S. Federal Reserve’s recent promise (most recently from Fed chairman Ben Bernanke today, August 27) to continue its...

Hungarian budget goulash signals next phase in euro crisis

 Hungary’s budget crisis isn’t large in size in comparison to those of Greece or Spain, but Hungary’s crisis is a harbinger of the next crisis euro debt crisis. Hungary’s budget crisis raises the question What happens when a country reaches a bailout agreement with...

Narrowing down the list of Europe's troubled banks

More details and better projections on the European bank stress test and what banks are likely to fail the test. The smaller than expected demand—just $162 billion–for 3-month loans from the European Central Bank shows, I think, that the European banking sector...

Spain sells bonds–at least the market is still buying

$4.3 billion down. Just $62 billion to go. Yesterday, June 17, Spain sold $4.3 billion in bonds at auction at surprisingly low yields of 4.86% for the 10-year notes and 5.90% for the 30-year bond. Both rates were slightly below the yield on existing Spanish bonds in...