Cliff Wachtel submits: Like other emerging market nations, it has entered a vicious cycle in which market skepticism creates higher borrowing costs and actually pushes the country closer to the abyss, its demise becoming a self fulfilling prophecy.
Europe’s problem is that it has more than one Greece. Greece’s problem is that it is alone.
If it were just a negotiation between Greece and its creditors, the issue would be complex enough, a multi-player game of chicken between Greece, the eurozone governments, the European Central Bank, the International Monetary Fund and the financial markets. Even so, if that were all, the crisis might well have been resolved by now: debt relief in exchange for structural reform; haircuts, handshakes and Champagne all round.
BRUSSELS (AP) — European leaders united in anger as they attended a summit overshadowed by reports of widespread U.S. spying on its allies — allegations German Chancellor Angela Merkel said had shattered trust in the Obama administration and undermined the crucial trans-Atlantic relationship. The latest revelations that the U.S. National Security Agency swept up more than 70 million phone records in France and may have tapped Merkel's own cellphone brought denunciations Thursday from the French and German governments.
AS WE have all read repeatedly since it became clear that Greeks would be voting again in June, Greece and the euro zone are engaged in a game of chicken. Greece's left-wing Syriza has been intimating that Greece has nothing to lose from exit and can therefore force the euro-zone core into accommodating its demands. Core euro-area leaders, by contrast, argue that they aren't about to give ground to Greece and that if Greek voters want to push themselves out of the single currency that is fine by them.
Brussels (AFP) - The EU's founding father Jean Monnet wrote in his memoirs that "Europe will be forged in crises" -- but a recent storm of troubles risks tearing the continent apart instead of bringing it together.
Submitted by Ben Hunt via Salient Partners' Epsilon Theory blog, I was at a conference, on deck for a presentation, and I had the chance to listen to the Q&A for the speaker ahead of me. “Assuming no external shock, how much longer can this bull market run?”