Welcome to Capital Account. What we are seeing across the Western world is exactly what happens when faith in the systems of governance and commerce are shaken to such a degree that the emerging cracks in the foundation appear too large and the holes too gaping to fix by traditional means. Nowhere is this more [...]
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If Greece has to leave the euro, it will be because of the reckless decision to bail it out in the first place
Why is Greece likely to leave the euro? It’s not because it defaulted. If Greece had defaulted in late 2009 or early 2010, it would not have needed to leave the euro. It could have defaulted on its private sector bondholders, borrowed a bit short on private markets at 11-12 per cent, and borrowed from [...]
EU financial ministers exchange over bank rules
BRUSSELS (AP) — European Union financial ministers are to accommodate in in Brussels Tuesday to produce out an agreement over how high banks should build their defenses opposite destiny financial shocks, with a U.K. using a risk of being removed over who should set a height. The EU’s 27 members determine on a need to [...]
IMF prepares for a ‘messy’ Greek exit from the euro as Hollande meets Merkel to discuss fate of single currency
The IMF and the British government are both preparing for a possible Greek exit from the Euro Its head Christine Lagarde said the impact was hard to predict but that it would ‘messy’ Experts believe a Greek withdrawal could put pressure on Spain and Portugal to do the same, triggering a collapse of the euro [...]
Appetiser cost of Greek exit is €155bn for Germany, France: trillions for meat course
Eric Dor’s team at the IESEG School of Management in Lille has put together a table on the direct costs to Germany and France if Greece is pushed out of the euro. These assume that relations between Europe and Greece break down in acrimony, with a full-fledged “stuff-you” default on euro liabilities. It assumes a [...]
Oren Laurent Receives World Finance 100 Award For Banc De Binary
Oren Laurent and Niko Galis appear at the London Stock Exchange to receive the prestigious World Finance 100 Award. Banc De Binary has established itself at the forefront of binary options trading and has driven unprecedented growth in this market. The very definition of success, Banc De Binary already boasts a portfolio of over 50000 [...]
Small Business Vital To UK Economy
A fraction of small businesses in the UK play the biggest role in the country’s economic growth, a report has revealed. With the UK back in recession, politicians and financial experts are looking at ways to boost the country’s struggling economy in the face of continuing job losses and turmoil in the eurozone. But a [...]
This is how the euro ends – not with a whimper but a bang
With Greece unable to form a government and therefore now set on new elections, how’s this going to pan out? Very badly, is the almost certain answer. Let’s look first at the now odds on possibility of a Greek exit. The outcome of the last election was basically just a protest vote – the Greeks [...]
As ever, it will be the lawyers who benefit most from a Grexit
Little noticed in the last Greek sovereign debt restructuring was the fact that the new bonds were constituted under English law. Why was this, when the bonds are a liability of the Greek state and are denominated in euros? There’s a simple answer. It’s to make it more difficult for Greece to redominate the debt [...]
Euro zone finance ministers dismiss Greek exit "propaganda"
BRUSSELS/ATHENS (Reuters) – Euro zone finance ministers dismissed talk of Greece leaving the euro zone as “propaganda and nonsense” on Monday, but said the country had to respect the terms of the bailout program agreed with the EU and the International Monetary Fund. If Greece can form a government and that government signs up to [...]