Category Archives: European financial stability fund

Europe moves closer to Quantitative Easing:Inflation falls to 0.3% Carlo Bastasin suggests a useful policy tool

The latest inflation data for the Eurozone shows inflation at only 0.3 %. Many analysts are beginning to worry that prolonged low inflation will reinforce economic stagnation (See the analysis of Gavin Davies in the Financial times on this.) An … Continue reading

Posted in anti austerity, European debt crisis, European financial stability fund | Tagged , | Leave a comment

U.S. government Shutdown Irrationality & higher Unemployment in Europe:A very bad combination

The long predicted but nevertheless very foolish self inflicted irrational Tea party Inspired shutdown of all but essential U.S. government services has occurred as of midnight last night, Washington time. It is difficult to predict how long it will last … Continue reading

Posted in austerity, business cycles, European financial stability fund, European unemployment, fiscal policy, France politics+economy, government shut down+debt ceiling U.S., Spain, U.K. economy, U.S., Uncategorized, unemployment | Tagged , , , | Leave a comment

A tale of two bankruptcies: Washington Mutual versus Laiki Bank

According to Alan Blinder, a former vice chair of the Federal reserve and professor of Economics at Princeton and a Keynesian when Washington Mutual one of the largest banks in the U.S. with assets of $328 billion  went bankrupt in … Continue reading

Posted in austerity, Cyprus banks, European financial stability fund, Greek sovereign debt crisis, Uncategorized | Tagged , , | Leave a comment

Eurozone allows stabilization fund to inject capital into private banks: Spain, Italy and France win partial victory

After late night negotiations it has been decided to permit the European stability fund to purchase directly the assets offered by banks in Spain and and Italian sovereign bonds and by so doing permit European funds to be injected directly … Continue reading

Posted in austerity, deficit hysteria, deficits and debt, European debt crisis, European financial stability fund, European unemployment, France politics+economy, Greek sovereign debt crisis, quantitative easing, Spain, Uncategorized | 1 Comment

Supreme Court upholds Obama Care; Europe continues to debate how to rescue economy from bond market blackmail

The Supreme Court in a 5 to 4 decision with Chief Justice Roberts siding with the majority has upheld most of the Affordable Care Act by ruling its provisions constitutional under the federal powers of taxation. Four of the liberal … Continue reading

Posted in austerity, deficit hysteria, deficits and debt, European debt crisis, European financial stability fund, European unemployment, France politics+economy, Greek sovereign debt crisis, Italian debt crisis, monetary policy, quantitative easing, Uncategorized, unemployment | 1 Comment

Coalition building in Greece:A coalition may require Pasok &New Democracy party factions to co-operate with the left.

The head of the the second most sucessful party , Syriza , the coalition of the Left , Alexis Tipras has now been given the task of trying to form a government around an anti austerity position, after New Democracy … Continue reading

Posted in austerity, deficit hysteria, deficits and debt, European debt crisis, European financial stability fund, European unemployment, France politics+economy, Greek sovereign debt crisis, Mr.Papandreou and democracy | Leave a comment

S+P Downgrade Warning on European Sovereign Debt May throw Spanner in the Works

When it really counted in the past in the lead-up to the financial crisis S+P and other ratings agencies failed to warn about the quality or lack thereof of the asset backed financial derivatives that caused so much disaster in … Continue reading

Posted in austerity, classical economics, deficit hysteria, deficits and debt, European debt crisis, European financial stability fund, Greek sovereign debt crisis, Italian debt crisis, Uncategorized | Leave a comment