by Markus

. I am glad about the reached agreement. Its three main pillars consist of: + EUR 750 bn in a fiscal support program, with 2/3 coming from the IMF + The ECB promises to buy gov and corp bonds in dysfunctional markets + Swap lines with the Federal Reserve, to provide USD Finally, Europeans leaders [...]

by James

When the Vix Index is below 20 and the media is blaming a surprise move in Indian interest rates for a rise in risk aversion, something looks wrong. Smoke and mirrors is an expression that comes to mind. When I was first studying finance, I remember hearing about how traders create volatility. That may be [...]

by Markus

We could have a lengthy debate about whether the EU or the International Monetary Fund (IMF) should step in for helping Greece. There are good arguments for both positions. Our last round table in Monaco was a good example for that. For the Greeks the IMF program would be probably even more pleasant than the [...]

by Markus

Is the serious situation in Greece mainly homemade? Yes. Was Greece ready to enter the currency union? No. Did the other Eurozone members contribute to the situation with their laissez-faire policy regarding Greece´s cooked books? Yes, absolutely!  Is the country able to fight the crisis alone? No. Does it mean Greece will need a bail-out [...]

by Markus

IMF was the hottest stock on earth late 2008 and early 2009 when political discussions were about how to reform supranational coordination mechanisms. IMF´s Strauss Kahn has beaten his Worldbank compagnon by far in his ability to act swiftly and to present his institution as the only logical choice. Since the G20 summit in London [...]

by Dino

Major world stock markets continued to correct last week. The S&P 500 index declined in all but one of the nine sessions after reaching its current-rally closing high of 1072. But, in the large scheme of things, the past week capped a fantastic quarter for US and worldwide equities, with US benchmarks up 15% for [...]

by Markus

V,U,W – letters investors are having on their mind, when discussing the shape of global, respectively US recovery scenarios. But what about Africa? Apart from commodity-hunger driven Chinese investments in African land and property and large solar energy projects with the North African countries, it is the continent with the least media recognition when it [...]

by James

The outlook for the Latvian Lat (LVL) has deteriorated somewhat since our last post on the topic (click here). The differences between Argentina and Latvia remain stark, and the case for the Latvian peg remains positive, but it is finely balanced. What has changed? Certainly, the economic situation has continued to deteriorate, but the major [...]