EURO CRISIS. Eurozone Debt Web. The circle below shows the gross external, or foreign, debt of some of the main players in the eurozone as well as other big world economies. The arrows show how much money is owed by each country to banks in other nations. The arrows point from the debtor to the creditor and are proportional to the money owed as of the end of June 2011. The colours attributed to countries are a rough guide to how much trouble each economy is in. Click on a country name to see who they owe Europe is struggling to find a way out of the eurozone crisis amid mounting debts, stalling growth and widespread market jitters. But, with global financial systems so interconnected, this is not just a eurozone problem and the repercussions extend beyond its borders. While lending between nations presents little problem during boom years, when a country can no longer handle its debts, those overseas banks and financial institutions that lent it money are exposed to losses.
GDP: €1.8 tn Foreign debt: €4.2 tn. INET Conference in Berlin: Day 2 Videos. Yanis Varoufakis: The Future of Europe 5/6. Sven Giegold: The Future of Europe 4/6. George Soros: The Future of Europe 3/6. Wendy Carlin: The Future of Europe 2/6. Markus Brunnermeier: The Future of Europe 1/6. Europe’s Periphery: A postmodern version of Britain in the 1930s? While it is quite correct to draw parallels between the Crashes of 1929 and 2008, it is important to distinguish not only between the two eras but also between the different experiences of different nations within the same era. The simple, but not insubstantial, point of this post is that Europe’s Periphery is not in the same boat as the United States, or Britain, today; just like Britain found itself in a different kind of pickle, after 1929, compared to that of the United States.
Moreover, keeping in mind these differences is important in order to devise strategies for dealing with the Crisis. Take Britain in the post-Great War period, that eventually led to 1929 and the Great Depression. From the Great War’s end, Britain was experiencing diminishing investment and profitability. Having returned soon after the War to the Gold Standard, and at an exchange rate that was too high, Britain spent the 1920s trying to defend that high exchange rate by means of high real interest rates. So?
Structural Flaws of the EMU. Satyajit Das: The European Debt Crisis Redux. By Satyajit Das, derivatives expert and the author of Extreme Money: The Masters of the Universe and the Cult of Risk Traders, Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives – Revised Edition (2006 and 2010). Jointly posted with Roubini Global Economics The half-life of solutions to Europe’s debt problem is getting ever shorter. Recent hopes have relied on the ostensible success of the European Central Bank’s (“ECB”) LTRO – Long Term Refinancing Operation, more appropriately termed the Lourdes Treatment and Resuscitation Option.
In December 2011 and February 2012, the ECB offered unlimited financing to European banks at 1% for 3 years, replacing a previous 13-month program. The funds borrowed were used to purchase government bonds, retire or repay existing more expensive borrowings and surplus funds were redeposited with the ECB. The LTRO provided finance for both beleaguered sovereigns and banks, which need to raise around €1.9 trillion in 2012. Dummies Guide To Europe's Ever-Increasing Jumble Of Acronyms. It seems every week there are new acronyms or catchy-phrases for Europe's Rescue and Fiscal Progress decisions. Goldman Sachs provides a quick primer on everything from ELA to EFSM and from Two-Pack (not Tupac) to the Four Presidents' Report. Rescue Programs EFSFEuropean Financial Stability Facility. A temporary special purpose vehicle financed by members of the euro area to address the European sovereign debt crisis by providing financial assistance to euro area states in economic difficulty.
EFSMEuropean Financial Stabilization Mechanism. ESMEuropean Stability Mechanism. TroikaTroika. ELAEmergency Liquidity Assistance. SMPSecurities Markets Program. LTRO (3-year)Long-term Refinancing Operation. Target 2Trans-European Automated Real-time Gross Settlement Express Transfer (2nd generation). EMUEconomic and Monetary Union.
Growth CompactGrowth compact. Fiscal Progress Fiscal UnionFiscal union. SGPStability and Growth Pact. Six PackSix Pack. Fiscal CompactFiscal compact. Two PackTwo Pack.