Eurozone Bailout

Bond exodus on a par with eurozone bank run – FT.com

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Bond exodus on a par with eurozone bank run By Richard Milne A great deal of attention is being heaped on the possibility of a bank run across the eurozone. But something just as important is currently happening: a bond run. Foreign investors have left the government and corporate bond markets of Italy and Spain in droves in the past year and there is little evidence of the selling slowing down. If anything, the worry would be that the process carries on for some time as it has done in Greece, Ireland and Portugal.   Bill Gross A whale in … Read more

Western Leaders Seek to Contain Euro-Crisis Market Turmoil

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Western leaders huddled on preventing the debt crisis from spreading to the core of the euro area after the biggest weekly decline in global stocks since 2008. President Barack Obama and British Prime Minister David Cameron joined telephone consultations with euro-area counterparts yesterday as investors signaled concern a July 21 agreement to expand the 440 billion-euro ($628 billion) rescue fund would fail to stop the rot. Full article available @: http://www.businessweek.com/news/2011-08-06/western-leaders-seek-to-contain-euro-crisis-market-turmoil.html

Italy under fire in widening euro debt crisis

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(Reuters) – Financial market pressure on Italyintensified on Tuesday, sucking Europe’s second biggest debtor nation deeper into the euro area danger zone and prompting Italian authorities to call emergency talks. Italian bond yields hit their highest level in the euro’s 11-year lifetime, ominously reaching the same level as Spain’s in a sign that Rome is overtaking Madrid as the main focus of investors’ concern about debt sustainability. Italy’s stock index fell to its lowest in more than 27 months, dragged down by banks with a heavy exposure to Italian debt. European shares hit a 9-month low amid worries that slowing … Read more

‘s Left With The Bill for the Eurozone Bail-out

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The latest chapter in Europe’s never-ending sovereign debt crisis comes about a year after Greece received a 110 billion euro ($158 billion) bailout package from the EU and IMF. That bailout was supposed to buy time for Greece to adopt austerity measures without having to tap the public debt markets. Lets take a look at exactly where funding is coming from for the various PIIGs bailouts. The total €865 billion ($1.2 trillion) pot available for euro-area rescues is rather enormous. (Whether it will be sufficient to cope with Greece, Ireland and Portugal’s needs is yet to be determined). The sources … Read more