Europe is facing a make-or-break month. Its economy is sinking and the debt crisis that has hit some of its members threatens global economic disaster. Now its central bank is poised to hold off from helping — in the hope that Europe's divided leaders will be pushed into action.
In a way, Europe should be thrilled that financial markets barely batted an eye at the crisis in Cyprus, which reached a bailout deal with the eurozone Sunday.
But Europe has a problem on its hands that’s bigger than Cyprus: The economy stinks.
In a way, Europe should be thrilled by the week that was because financial markets barely batted an eye at the crisis in Cyprus. But Europe has a problem on its hands that's bigger than Cyprus: the economy stinks.
When Goldman says sell, everyone knows they really mean buy. However, when less specialized banks in the art of Kermit rapage, such as Bank of America, come out with a report saying that now is a good time to hunker down, they may just actually mean that. From BofA's Ethan Harris:
By Simon Johnson
The Group of 20 summit for heads of government this weekend will apparently “hail bank reform,” particularly as manifest in the Basel III process that has resulted in higher capital requirements for banks. According to leading authorities on the issue, however, the Basel process is closer to a disaster than a success.
The European Central Bank eased investors' fears about Europe's financial crisis when it said in September that help was at hand for countries struggling with their debts. But the bank, which holds a monthly policy meeting Thursday, isn't likely to take further action anytime soon to help the 17 countries that use the euro with their ailing economies.
Slovenia, like Hungary is on the brink of fiscal disaster. Unlike Hungary, Slovenia is in the Eurozone.
The Guardian reports Slovenia scrambles to avoid economic crash as Zoran Jankovic, leader of largest party, fails to form a government to deal with debt issues.
Bond yields of the most financially fragile eurozone members hit fresh
records on Friday as eurozone leaders began talks on stepping up policy
coordination to tame a debt crisis that threatens to claim new victims.