Why The European Debt Crisis Might Actually Be Over... Last week we wrote a lot about what's rapidly becoming the hottest question in Europe: Did the ECB pull off a backdoor bailout of the various governments by making it super-cheap for banks to borrow money, with which they can then turn around and buy sovereign debt at juicy yields? Some people think a corner has turned. Economist Tyler Cowen wrote a post on this headlined: It is finally being recognized that the eurozone made a major policy breakthrough. Felix Salmon on the other hand is not convinced, pointing out that bankers themselves say they have no plans to buy more European sovereign debt.
And actually, most analysts on Wall Street who have commented don't buy it either. But something shifted in the market over the past several days, as evidenced by the sharp plunge in yields on short-term sovereign debt. Here's the Spanish 2-year bond, via Bloomberg. So is the crisis solved or not? But here's the thing. But nobody rang a bell at the end of the US crisis either. Wat gebeurt er als.... BCG Presents The One Chart To Explain The Implications Of Leaving The Euro.
De grafieken van 2011. What really caused the eurozone crisis? Key Events 2012.