The euro project is doubted widely now. No surprise, given the macro, the plans and the handling of the bailout of Cyprus. I believe this is now the fourth year when "everything is solved" around the new year, things deteriorate slowly towards the spring...
and then by the summertime, things will not be like this:
but like this:
Previously on
MoreLiver’s:
Roundups &
Commentary
News – Between
The Hedges
Markets – Between
The Hedges
The Closer – alphaville / FT
Tomorrow’s Tape: Home Sales, Philly Fed, Jobless
Claims – WSJ
US: Stocks Close Below Open (and FOMC) As Market Fades
After-Hours – ZH
EUROPE
Plunderball – The new Euro banking game – Golem
XIV
Back in
December 2012 the FDIC and he BoE published a joint paper outlining their new
approach for how to resolve any future collapse of one of the Too-Big-To-Fail
banks: “deposit guarantee schemes may be required to contribute to the
recapitalization of the firm…”
A very clear explanation of why the euro zone
keeps exploding – Wonkblog
/ WP
Lachman: But
they don’t have their own central banks to pump up the money supply and offset
austerity and nor can they depreciate currencies. The reason you’re seeing
these crises recurring is they’re trying a recipe that can’t work. And so the
economies just keep weakening.
The Future of the Euro: Lessons from History – Brad
DeLong
Future of the Euro: Lessons from History – Eurofuture2013
A
Conference at UC Berkeley April 15-16, 2013
Is The Euro a Currency or a Prison? – WSJ
Wearing the
disguise of austerity, the single currency has emerged as the gatekeeper of
what is fast becoming a debtors' prison.
EMU = not Enough Monetary Union – Marc
to Market
It has been
widely recognized that a critical challenge Europe faces is a monetary union without fiscal
union. Yet the Cyprus crisis demonstrates that monetary
union is not complete.
European Public Debt Swings Wildly – PIIE
A
proposition widely shared among economists is that it is very difficult for
western democracies to change their levels of public debt relative to GDP. But that view is not correct.
Eurostat statistics on public debt as a share of GDP of 27 current EU members in the
1995–2011 time frame show remarkably big swings in individual countries, while
the average level has varied little.
OTHER
Yield Forecast Update: Short-term uncertainty -
long-term recovery –
Danske
Bank (pdf)