Deep in Debt
The next crisis is going to be due to debt. 2000 saw the dot-com bubble, and the Great Recession was due to subprime housing securitization. This time is different. A […]
Debts
Eurozone ministers: Greece’s bailout is finally over
Euro zone ministers declared the end of the Greek debt crisis early Friday (June 22) agreeing on debt relief and a big cash payout for Greece, part of a broad […]
IMF approved $1.8 bln conditional loan for Greece
The International Monetary Fund’s board on Thursday approved a $1.8 billion loan to Greece – but will only release the money if the country gets debt relief from its European creditors.
The IMF has praised Greece for taking steps to reduce its budget deficits, including expanding its tax base and cutting spending on pensions. But the lending agency is pressuring Greece’s eurozone lenders to provide enough relief to ensure the battered country can pay its bills.
Athens, welcome back to the (bond) market
Greece plans to issue bonds next week for the first time in three years, according to news reports. Rumors had circulated that the country would make a return to debt markets early this week. But the government pushed back the date of its five-year bond issue to next week to avoid higher borrowing costs, according to Greece’s Kathimerini newspaper. Since the weekend, the country’s bond prices have risen as investors hope the proceeds will strengthen Greece’s finances.
The schizhophrenic economy
According to the FED, the recovery after the crisis of 2008 is coming along nicely although it is a bit slower in Europe. The FOMC is still debating whether a rise in interest rates is indicated, and December seems to be the right month for another rise of 25 basis points.