By: Daryl Montgomery
Why anyone would want to follow European countries on economic matters is a real puzzle. The EU’s handling of the Greek debt crisis will be recorded by history as one of the major episodes of government ineptness of our time (and there is really stiff competition in that category). Instead of dealing with the problem immediately and decisively by instituting dollarization and removing Greece from the currency union, EU leadership let the matter fester ...
Read On →
By: Daryl Montgomery
Over the weekend French President Sarkozy and German Chancellor Merkel said they had come to an agreement on recapitalizing EU banks. No details of their mystery plan were released. Plenty of details were forthcoming however on how Dexia bank was going to be bailed out and they indicate that it’s time for EU leaders to stop talking and to start acting.
Before its recent failure, Dexia bank was described as one of the strongest banks in Europe. It had ...
Read On →Headlines such as “Hopes for Greek debt progress lift world stocks” and
“Wall St opens higher on European hopes” are in the financial news today.
Before investors buy into the hype, they should realize that the powers-that-be always
deny an obvious and inevitable default before it takes place.
Greece in 2011 is on a very similar trajectory to Argentina in 2001
and is well past the point of no return for a default just as Argentina ...
Read On →By: Daryl Montgomery
While Americans slept, gold and silver prices plummeted in Asia. The low took place in Hong Kong at approximately 3AM New York time when spot gold flirted with the $1540 level and silver was around $26. A strong rally then took place after the London market opened half an hour later.
By the time Monday New York trading began at 8AM, spot gold was selling for $1626 and spot silver at $28.50 an ...
Read On →
