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ECB
Hello Everybody, Today the ECB announced its largest quantitative easing program where it will buy about $1.157 trillion in bonds by the Fall of 2016.  The plan is to combat deflationary pressures, bolster asset prices and stimulate the economy.  The ECB had to make this move but the reality is that structural reforms must be...
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Once again Germany’s Bundesbank is jawboning against ECB bond purchases.  While I understand that it is essential for struggling economies to fix their structural problems, at this point in the game it is obvious that the ECB must actually act like a central bank is supposed to act, and address the overall funding issues of...
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The European crisis continues to dominated markets all over the world and Moody’s Investor Service dimmed its outlook on Germany further exasperating the situation.  Rising bond yields in Spain and Italy are a function of the European leaders not doing enough to promote confidence and resolve the crisis.  By the constant posturing and threatening, European...
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Former Premier Silvio Berlusconi is jumping on the bandwagon for more help from the ECB.  Peripheral Europe can’t survive with the Europe unless the ECB becomes more accommodative to the economic pressures that they are facing.  Unless this happens the future of the Euro would be quite short.  Germany really needs to wake up and...
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I’m glad to see that the Italian Prime Minister Mario Monti is ratcheting up pressure on the German’s to be more flexible in aiding peripheral Europe.  I really don’t think the Germans have any choice if there wish is to save the European Union.  With the current disruptions in Spain due to the restructuring of...
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Momentum seems to be really building in regards to Euro-bonds.  I’ve said it before and I’ll say it again that this crisis will not be resolved without Euro-bonds, and/or money printing from the ECB.  Euro-bonds are the best option out there and deep down are in everybody’s interests, contingent upon there being a central governing...
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New French President Francois Hollande is very much interested in changing Franco-German relations.  The current economic policy being instituted to deal with the European crisis is based almost 100% on austerity.  The leadership of German Chancellor Angela Merkel has been strong but I believe slightly misguided in that not enough has been done to boost...
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Ray Dalio of Bridgewater Associate shares some very pertinent insight into the deleveraging processes taking place in both the United States and Europe.  He correctly identifies that the closest parallel to the current European crisis is situation the United States of America found itself in when it had the Articles of Confederation before the establishment...
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Nouriel Roubini and George Soros are exactly right.  Europe needs to grow as it is impossible to shrink out of an over-leveraged economy.  The ECB should be buying bonds and increasing the money supply to depreciate the Euro.  This would boost exports and decrease the severity of the recession. http://www.cnbc.com/id/47168723 INVESTING IN THE FINANCIAL MARKETS...
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Europe needs to come together to understand that austerity without growth is not enough.  While peripheral Europe cannot afford to increase their government spending, Germany as the leading nation must come forward to aid growth.  This means providing more flexibility for the ECB to issue bonds assisting in the financing of EU nations, which would...
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