The Greek Debt Crisis

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Negative Interest Rates, and other curiosities

Today’s office politics post is making way for yesterday’s fairly stupendous announcement that the European Central Bank will now be demanding payment from banks for the privilege of banking their money*. *thanks to the FT for the cartoon above. Some opening comments from Mr Draghi: “Now we are in a completely different world: low inflation, […]

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draghi

The Drag(hi) of Negative Interest Rates

What is a negative interest rate - and does it/should it matter?

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Why Companies Borrow

Article of the Day Link: GE is refinancing. Despite forecasted cash stockpiles of $100 billion, General Electric is refinancing (ie. reborrowing) $5 billion worth of debt. That is, GE is electing to borrow when it has more than enough money coming in to pay for whatever it needs. Why? Because the current rate they can borrow […]

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AND WE SHALL UNLIMITEDLY BUY BONDS

UNLIMITED BOND BUYING. Link: they did it. The key points: No change to the benchmark interest rate (so no banks will be paying the ECB for the privilege of lodging funds with them). An unlimited bond repurchase program (of bonds of less than 3 years maturity). The Bundesbank was disgusted with it all, announcing post the […]

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THE ECB GOVERNING COUNCIL MEETING: HEAR YE HEAR YE

Link: what’s at stake. This meeting sounds a lot like every meeting that has happened recently (see here for a list of how frequently the ECB governing council meets – about once every two weeks). Each one is hyped as “the one where they come up with a plan to save the euro”. And in the press conference […]

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The Greek Oil Conspiracy.

Article of the day: Samaras pledges asset sales. And I quote: “Sweeping state asset sales” of rail transport and energy. Cue: the Greek drama. The Opposition Firstly, Syriza (the opposition) says it will jail the current coalition for selling state assets when it takes power. For selling state assets for “peanuts”. The opposition’s opposition is […]

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G-8 says Greece should stay

The article of the day. Link: Uh huh – but what if it’s too L-8. Mr. Obama is supporting Mr. Hollande in his pro-growth policies. And poor Angela M is finding herself the last austerity stalwart/bulwark/any-other-misunderstood-nouns. My question: should Obama really be dishing out the economic advice? Yes – things look to be improving in America […]

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Daily News Roundup 2012: Thursday 17 May

Good morning The headlines: The Democrat Senate rejects five different budget plans. Link: WHAT is going on? It seems that the Republicans used some obscure rule to force the Senate to rule on all their proposed budgets (in a single day?) –  as an attempt to embarrass the Democrats for failing to organise a budget for the […]

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Austerity VS Growth

So the results have rolled in, and it looks like it’s going to be an awkward one. In France, Socialism has prevailed. Bye bye Sarkozy and his singing wife and the high society drama. Hello François and his civil-partner-that-he-won’t-marry and the anti-austerity rhetoric.  So what’s different? Sarkozy was all about the Merkozy. He advocated austerity, […]

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Daily News Roundup 2012: Thursday 10 May

Good morning The headlines: Officials begin publicly discussing Greece’s Euro Exit. Mostly, just the German minister saying “if Greece wants to go, we can’t make her stay”. And an analyst saying that they’re already out politically – now it’s just a question of timing and orderliness. Oh, and the guy from Luxembourg saying that it […]

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