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

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

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

Can the Eurozone Survive?

The ongoing difficulties in overcoming the persistence of debt-to-GDP ratio in EU countries highlight the question whether the European Monetary Union can survive the set of shocks which prevailed since the 2008/2009 economic and financial crisis. Recently, European Commission has presented the 2010 review of public finances in EMU (link), suggesting that macroeconomic outlook . . . → Read More: Can the Eurozone Survive?

Public Pension Crisis in OECD Countries

The central aim of my bachelor’s thesis is to demonstrate the unsustainability of public pension system in OECD countries in the longer run through the lens of a rigorous theoretical and empirical analysis.

The origins of contemporary public pension schemes date back to 19th century when Bismarck Germany in 1881 first adopted a universal . . . → Read More: Public Pension Crisis in OECD Countries

Old News

Unlike Mr. Market who seem to be in full risk-on mode at the moment I am a bit handicapped on account of an awfully slow internet connection which is why posting is unusually slim at the moment. Another part of the market which seems to be a bit handicapped is the usual suspects in . . . → Read More: Old News

EU Flags the Risk of Debt Snowballs in Southern Europe – Irony or Tragedy?

As it seems that we are finally about to get something which resembles a stable summer here in Denmark it may seem strange to suddenly start talking about snowballs. Yet, the idea of debt snowball is very relevant in the current environment as it relates to the potentially unstoppable development in public/domestic debt levels . . . → Read More: EU Flags the Risk of Debt Snowballs in Southern Europe – Irony or Tragedy?

The Welfare State and the Future of the Eurozone

The $140 billion rescue package to Greece is a milestone in the European Monetary Union. A lively debate on recent macroeconomic imbalances in the weakest economies of the Euroarea – Greece, Italy, Spain and Portugal – in the Eurozone has reopened the old debate on whether the Eurozone is an optimum currency areas (here, . . . → Read More: The Welfare State and the Future of the Eurozone

The European Bay of “PIIGS”

The Economist published a fascinating overview (link) of the macroeconomic indicators in Europe’s most vulnerable economies in the current debt crisis (Portugal, Italy, Ireland, Greece, Spain).

The Euro Crisis

Paul Krugman has blogged an interesting analysis of the anatomy of the recent economic crisis in Europe (link).

Europe’s difficult macroeconomic situation in the aftermath of the financial and economic crisis has exacerbated rising fiscal deficits and public debt alongside strong deflationary pressures. These pressures were triggered by the highly negative output gap – . . . → Read More: The Euro Crisis