Europe scored a minor victory last week with the boosting of the IMF’s capital, but it is very important that the ECB and the individual governments come up with a strategy to recapitalize the banks similar to how the U.S. did with TARP.  The banks should first be able to try and raise capital on...Read More

It’s not surprising that after last week Spain is looking for help from the ECB through the purchasing of bonds in the secondary market.  I think the ECB should definitely get involved while making sure Spain understands that their help is contingent upon them cutting the fat our of their budget.  The ultimate costs will...Read More

Alfredo Saenz is exactly right that the ECB needs to get in front of the issue and buy Spanish debt as yields climb.  As stated before this won’t solve the structural problems but neither will delaying the issue.  Policymakers have continuously waited for the market to force them to make a move instead of taking...Read More