Category Archives: Europe

Ed Harrison: Some Thoughts on the Coming Defaults of Greece

Lambert here: This post is a 30,000-foot view of the unfolding Greek crisis, written after the Eurozone finance minister’s meeting at Riga in April, but still good, and republished, today. tl;dr: The opera ain’t over ’til the ECB sings. Ruthlessly oversimplifying one aspect of Harrison’s post, Grexit is “arduous,” because the EU is a Rube […]

Wolf Richter: Panicked Hedge Funds Now Praying for a Miracle in Greece

Hedge funds, the ultimate “smart money”, are twisting in the wind.

My Big Fat Greek Bank Black Hole: No Deposit Insurance

It’s hard to find an official who is comporting himself very well in the wake of the Tsipras surprise announcement of a referendum on July 5 for a then-defunct bailout offer.

Consent of the Governed, Tsipras Style (Updated)

Tsipras has already taken the decision to miss the €1.6 billion IMF payment due June 30 and the €3.5 billion ECB payment that falls on July 20, while falsely telling Greek citizens that they have a say in this momentous choice.

BBC: ECB to Stop Emergency Support of Greek Banks on Monday; Bank Holiday Likely

The ECB has decided to lower the boom on Greece.

Tsipras’ Bailout Referendum Sham

At 1:00 AM in Athens on Saturday morning, Greek prime minister Alex Tsipras announced that Greece would hold a referendum on July 5 on whether to accept the terms provided by the creditors in order for Greece to obtain €7.2 billion in “bailout” funds as the final part of a loan package provided to Greece in 2012.

The bailout in fact expires on June 30. It is too late for Greek voters to have any say on the Greek government’s posture in the negotiations. So what was this ploy meant to achieve?

What if the Euro Area Falls into Serious Deflation?

Why structural reforms will not ward off deflation in Europe.

Deal With Greece Still Looks Wobbly

Negotiations with Greece remain fraught. Only a narrow path has been opened to getting a deal done, and it is far too easy for the parties, for reasons good and bad, to stray from it.

Short Greece Proposal Update: Greece Folds

More details on the Greece proposal to its creditors.

Scotland: the Moldovan Connection

How modest homes in some of Scotland’s poorest areas became prolific ‘company factories’, and how those companies were used in a giant Moldovan bank fraud

Greek Government Preparing Plans to Cross Red Lines to Avert Default

Greek government officials are preparing plans that would cross Syriza’s famed red lines in order to avert a default. Will Tsipras capitulate?

The Russian Pipeline Waltz

An analysis of possible Russian pipelines in Europe as strategic bargaining chips.

At Emergency Summit, Creditors Plan to Make Greece an Offer It Can’t Refuse

A Eurogroup meeting ended if anything with Greece and its creditors even more alienated from each other.

What If There is No Deal on Greece?

The alarming part of the deadlock between Greece and its lenders is the lack of a plan on the creditor side to develop a Plan B, a sort of mirror image of the Greek government’s claim that its has bet everything on securing a favorable agreement.

Bank of Greece Issues Grexit Warning, in Move Certain to Intensify Bank Run

The Bank of Greece submitted a required report on monetary policy to the Greek Parliament and the Cabinet this morning. The English language version of the press release shows that it says, in stark terms, that failure to reach a pact with Greece’s creditors will lead to a Grexit and likely a departure from the European Union.