Monthly Archives: November 2010

What’s next for Portugal, Spain and Italy?

Rapid deleveraging by the northern European banks since December 2009 may make their governments less amenable to negotiation, and more inclined to demand tough austerity programs in return for bailouts.  Here is a very good analysis of the implications for Portugal, Spain, Italy, and the EU. Advertisements

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What is the Irish Rescue Package?

Full text of the Government statement on its application for financial aid from the EU and IMF:  The Government today agreed to request financial support from the European Union and the Euro Area Members States. The IMF will also be … Continue reading

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How bad are Ireland’s economic troubles?

An excellent article (appropriately titled) Threadbare from  The Economist  reports that Ireland’s banks have been unable to access wholesale capital markets, while corporate deposits have been fleeing abroad at an alarming rate in the past few weeks. This has left the banks … Continue reading

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Bond Yields for Ireland and the Peripheral EU Countries

The yields of the peripheral EU countries (formerly known as the PIIGS) have been rallying for the past month.  Click on the link for each country’s chart on Bloomberg: Greece Portugal Spain Italy Ireland

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What’s at Stake for Foreign Banks in Ireland

According to the Bank for International Settlements, (BIS) foreign lenders still have $170bn invested in Irish banks. Of this total, $46bn has come from German banks, $42bn from British banks, $25bn from US banks, and $21bn from French banks. But … Continue reading

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Which Banks Have the Highest Exposure to Irish Debt?

The financial crisis in the European Union is not just about sovereign risk.  Sovereign bond yields, CDS spreads, and even the Euribor rate all indicate grave doubts about the liquidity and possibly even solvency of some large European financial institutions.  This … Continue reading

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Euro Debt and Deficit Levels

Eurostat, the statistical office of the European Union, released this morning the latest government deficit and debt data for the EU Member States.   In 2009, the deficit to GDP ratio in the entire euro area (EU16), and also for the wider group of EU member countries EU27  increased … Continue reading

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