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The Vulnerability of Private Wealth to Government Financial Stress
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QEs, Currency Wars, the Trillion Dollar Platinum Coin and the Route to “Modern” Inflation
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The Vulnerability of Private Wealth to Government Financial Stress
Tag Archives: Euro financial crisis
Liquidity and Asset Bubbles, But Only if the Dam Holds
The ECB lending program to banks is off and running. On the first day offered, low interest rates loans were subscribed by banks in the amount of $635 Billion, an amount greater than the Fed’s QE2 which took nine months to complete. This is a battle of whether liquidity will trump insolvency and stabilize government debt prices. If it does, it will set off an asset bubble in assets that thrive in low and stable interest rate environments. Continue reading
Posted in The Spellman Report
Tagged ECB lending, Euro debt crisis, Euro financial crisis, insolvency, Liquidity, monetization
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How Monetization Happens: Being at the Helm When the Ship Goes Down
The consequences of excess debt are now facing the leaders of Europe head on, and a monumental decision must be made whether explicitly or implicitly. Excess debt leads to a long chain of D words: Deleveraging in an attempt to … Continue reading
The Dumpster for Toxic Euro Sovereign Debt
Some might be wondering why the euro zone rescue focus turned to saving banks as opposed to saving governments. The reasons are illuminating. Consider the following: When a government has a debt bulge, the debt must be held as someone … Continue reading