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 [...]
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 [...]
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 [...]
A lurch for gilts on uninformed euro jitters
By Rob Davies PUBLISHED: 15:51 EST, 14 May 2012 | UPDATED: 16:21 EST, 14 May 2012 Britain’s borrowing costs fell to their lowest turn given annals began, as investors dashed for a reserve of gilts in a midst of complicated batch marketplace falls. Renewed fears of an approaching Greek exit from a euro sent batch [...]
Four out of five Greek voters still committed to the euro: will the Greek anti-austerity parties blink first?
There’s a paradox at the heart of the Greek euro debate: voters have comprehensively rejected EU-mandated austerity – parties that are (more or less) in favour of ripping up the bailout conditions mustered 68pc of the votes. And yet, according to a new poll, 78pc of Greeks are still in favour of the new government [...]
Why the euro is doomed to fall apart: it was an incredibly stupid idea in the first place
The euro is doomed to fall apart: no, not because I’m some nasty man in UKIP but because the basic idea was such a terrible one. Our chart above (which you can see more easily by clicking here) shows just how terrible it was. It would, in economic terms, have been better to have a new [...]
Fifth Street Finance Corp. Declares Monthly Dividends of 9.58 Cents Per Share
Risk resources shelter on Greece bailout uncertaintyReuters Shares, bullion and oil fell and a euro remained pressured on Wednesday as Greece struggled to form a government …
Greece is at the epicentre of a new euro crisis – and its chaos will spread
Contagion risks are back with a vengeance. With Greece edging towards the euro exit gates, pressure is building in familiar territories. Yields on Portuguese sovereign debt have spiked even more rapidly than those on Greek debt. Spanish and Italian borrowing costs are creeping up. The markets are pointing to another imminent euro crisis. And, once [...]
Lecturing Germany on the euro could be a diplomatic own goal for Cameron
It’s easy to share David Cameron’s frustration with the inability of eurozone leaders to come up with anything that even resembles a solution to the euro crisis. Given its exposure, Britain can do all the right things to get its economy back on track, only to be sent straight back to a long-grinding recession should [...]
Sterling hits 22-month high opposite euro as stress grows over Spain
By Hugo Duncan PUBLISHED: 16:27 EST, 30 Apr 2012 | UPDATED: 16:27 EST, 30 Apr 2012 Sterling strike a 22-month high opposite a euro yesterday as a deepening predicament in Spain fuelled fears about the ailing singular currency. The bruise was also during an eight-month high opposite the US dollar as investors continued to perspective [...]