Greeks Run on Banks as Euro-Confidence Wanes

In Pamplona, Spaniards run with the bulls. In Athens, Greeks run on the banks. Yes, folks a good, old-fashioned bank run is underway in Greece.

Greek Household and Corporate Demand Deposits

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Greeks Run on Banks as Euro-Confidence Wanes

In Pamplona, Spaniards run with the bulls. In Athens, Greeks run on the banks. Yes, folks a good, old-fashioned bank run is underway in Greece.

Greek Household and Corporate Demand Deposits

[Read more...]

British Pound Sterling Losses “Safe-Haven” Status

Good day. Another busy day on the desk yesterday, as the increased volatility in the currency markets had the phones ringing. Many of the clients calling the desk were worried about the recent drop in the currencies and metals. Some want to bail out, while others are seeing the fall in prices as a good buying opportunity.

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British Pound Sterling Losses “Safe-Haven” Status

Good day. Another busy day on the desk yesterday, as the increased volatility in the currency markets had the phones ringing. Many of the clients calling the desk were worried about the recent drop in the currencies and metals. Some want to bail out, while others are seeing the fall in prices as a good buying opportunity.

[Read more...]

Euro Continues to Drop

Good day. We made it through another Monday without too much damage in the currency markets. You know things are getting pretty rough in the currency markets when we consider an average drop of just over 1% in the currencies “not too bad.” World Markets investors can’t say they weren’t warned we would see some tough times over the first half of the year (see more on this subject in the “Then there was this” section).

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Euro Continues to Drop

Good day. We made it through another Monday without too much damage in the currency markets. You know things are getting pretty rough in the currency markets when we consider an average drop of just over 1% in the currencies “not too bad.” World Markets investors can’t say they weren’t warned we would see some tough times over the first half of the year (see more on this subject in the “Then there was this” section).

[Read more...]

Greek Default Triggers Euro Weakness

Good day. Well, the ISDA people did determine that what Greece did last week — invoking the CACs (remember, collective action clauses) — meant that Greece was in default, so it triggered the credit default swaps (CDSs) to be executed. Now, I find this to be very interesting in that ISDA is a group of banks and financial firms, the same ones that wrote the CDS contracts. And you may remember me talking about the writers of these CDS contracts a few months ago.

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First We Conquer Iceland

The law of unintended consequences states that actions, especially governmental ones, always have unintended and unpredictable effects. These unanticipated effects can be far more powerful than the planned ones. Thus, economists often use this law as a warning to politicians that policies commonly ‘achieve’ the opposite of their intentions. For example, raising the minimum wage to ease the burden on workers usually causes more unemployment, especially among marginal workers. Similarly, raising taxes often diminishes tax revenues.

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France Has a Successful Bond Auction

Front and center this morning, the euro (EUR) has plunged overnight, and now sits 2-cents below where it was yesterday when I was writing the Pfennig. France auctioned bonds this morning, and had to ratchet up the yield, as many buyers are afraid of the rumors that France’s AAA rating is about to be slashed. But this is old news, and shouldn’t have caused the move in the euro that we’ve seen since yesterday.

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