Emergency Liquidity Assistance in the Eurozone – Draghi’s Irreversible Euro Put Explained

Last week was not short of volatility with a three party central bank bingo and the nonfarm casino to cap it off. Markets went into the week with extreme expectations and as it became clear that central banks would do nothing concrete, the disappointment loomed.

Still, Draghi seemed to pull yet another rabbit . . . → Read More: Emergency Liquidity Assistance in the Eurozone – Draghi’s Irreversible Euro Put Explained

Equities the Way to Benefit from Gold's Strength: Henk Krasenberg

Henk J. Krasenberg, analyst and founder of the European Gold Centre and author and publisher of the GOLDVIEW newsletter, sees no lack of potential among small-cap equities, especially for investors willing to look beyond the U.S. borders. He offers names in Europe and Africa—what he calls “the poorest and richest continent”—and reminds us . . . → Read More: Equities the Way to Benefit from Gold’s Strength: Henk Krasenberg

The Fear Factor in Gold Equities: Robert Cohen

The market is like a kid that can only ride a bike with training wheels on it, according to Robert Cohen of GCIC Ltd. As portfolio manager of the Dynamic Precious Metals Fund and the Dynamic Strategic Gold Class Fund (sold in Canada) and the Dynamic Gold & Precious Metals Fund (sold in . . . → Read More: The Fear Factor in Gold Equities: Robert Cohen

Time Unlikely to be a Healer for Portugal's Economy

In a strict sense, the answer to this question has to be no and indeed the most recent turn of events have put Spain back in the spotlight much to the chagrin no doubt of the EU and IMF. Simply put, Portugal is manageable but Spain may turn out not to be. In this . . . → Read More: Time Unlikely to be a Healer for Portugal’s Economy

Austerity and Reality

Paul Krugman still doesn’t get it:

Watching Europe sink into recession – and Greece plunge into the abyss – I found myself wondering what it would take to convince the chattering classes that austerity in the face of an already depressed economy is a terrible idea.

After all, all it took was the predictable . . . → Read More: Austerity and Reality

Keynesian Tautologies

From Paul Krugman:

Watching Europe sink into recession – and Greece plunge into the abyss – I found myself wondering what it would take to convince the chattering classes that austerity in the face of an already depressed economy is a terrible idea.

After all, all it took was the predictable and predicted failure . . . → Read More: Keynesian Tautologies

Other Alpha Sources

I have been enjoying myself in the Austrian Alps last week and hence the lower output. Here is my look though, of a number of notable news stories and contributions.

Global Liquidity

Benoît Cœuré, Member of the Executive Board of the ECB has penned a speech (and argument) on global (excess) liquidity. Izabella likes . . . → Read More: Other Alpha Sources for February 13, 2012

First Act of Greek Default Proceedings Drawing to a Close

Global stock markets are up about 10% since the beginning of the year, volatility has collapsed, US economic data continue to defy even the mild slowdown proponents and the ECB seems to have backstopped the European banking system.

Yes, my dear reader. This is how quickly you move from away from the apocalyptic abyss . . . → Read More: First Act of Greek Default Proceedings Drawing to a Close

ECB/Fed Support for the European Banking System - 750 billion USD, and counting ...

One point that I have been shouting from the proverbial roof tops in my research, to partners and colleagues is that 2012 may well be the year when all major central banks will be conducting both conventional and unconventional monetary easing at the same time. I think this is a very strong testament not . . . → Read More: ECB/Fed Support for the European Banking System – 750 billion USD, and counting …

Guide to the Eurozone crisis

How did it happen?

The worst financial crisis in the western world for nearly 80 years broke in September 2008.

It required banking/financial systems to be supported and recapitalised by governments across the EU and in the US.

In June 2009 it became apparent that the peripheral countries of the Eurozone (Greece, Portugal, Spain . . . → Read More: Guide to the Eurozone crisis