News
Daily Morning Newsbriefing
ECB pulls plug on Greek banks (or how to start a bank run)
ECB says it is not lending to under-capitalised institutions, as it seeks to protect its own balance sheet; ECB did not say which banks are affected; those that are now put on Emergency Liquidity Assistance, under which banks borrow from the national central banks at higher rates; for registered users only.
Greek president warns of a bank run – and Spain’s spreads top 500bp for the first time
Greek parties fail in a last-ditch attempt to form a government; there will be new elections, most like June 17; decision followed an attempt by the Democratic Left to broker a deal, whereby ND and Pasok would renounce the promises they made in a letter to the EU; for registered users only.
Comment
President Hollande Should Propose an Ambitious Growth and Integration Agenda for the Eurozone
Eurozone governments should agree to stop taking new austerity measures in 2011 and define next year’s budgetary consolidation in terms of structural measures and not in terms of specific reduction in deficit and debt ratio.
The European Debt Crisis Redux
Finance and economic growth delinked
A modest proposal for ringfencing Europe
Analysis
The Americans, Baby
As the world focuses on the eurozone, this extensive analysis reminds us that the that the debt problem of the US government is at least as bad as that of the eurozone, and is likely to resurface very shortly.
