Random Links V

EU Banking Problems:

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/4593539/European-banks-toxic-debts-risk-overwhelming-EU-governments.html

And note that this isn’t solely due to American subprimes.

Origins of Eastern European Financial Problems:

http://brontecapital.blogspot.com/2008/07/hookers-that-cost-too-much-flash-german.html

http://www.rgemonitor.com/euro-monitor/253580/what_drives_fx_borrowing_in_eastern_europe

http://clausvistesen.squarespace.com/alphasources-blog/2008/10/14/more-about-the-baltics-and-the-cee.html

http://clausvistesen.squarespace.com/alphasources-blog/2008/10/13/the-cee-and-the-baltics-moving-towards-the-center-of-the-sto.html

Eastern Europe Death Watch:

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/3260052/Europe-on-the-brink-of-currency-crisis-meltdown.html

http://bloomberg.com/apps/news?pid=20601109&sid=awd1vGnyyBJQ&refer=home

http://www.spiegel.de/international/business/0,1518,druck-588419,00.html

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/4623525/Failure-to-save-East-Europe-will-lead-to-worldwide-meltdown.html

http://baselinescenario.com/2009/02/12/europe-is-in-bigger-trouble-than-the-us/

http://zerohedge.blogspot.com/2009/02/glance-at-upcoming-eastern-european.html

America as the tallest pygmy?

Latvia Downfall:

http://fistfulofeuros.net/afoe/economics-and-demography/why-the-imfs-decision-to-agree-a-lavian-bailout-programme-without-devaluation-is-a-mistake/

http://clausvistesen.squarespace.com/alphasources-blog/2008/12/24/imf-and-the-baltics.html

European Bond Unity:

http://www.ft.com/cms/s/0/77da5df0-eae5-11dd-bb6e-0000779fd2ac.html

http://ftalphaville.ft.com/blog/2009/01/26/51635/does-a-single-european-bond-hold-the-answer/

http://fistfulofeuros.net/afoe/economics-and-demography/italy-needs-eu-bonds-and-it-needs-them-now/

European bond markets aren’t my specialty, but I don’t see how joint issuance could eliminate credit-risk-related spreads between various European bonds, unless you had a common European fiscal policy (of some sort) backing the bonds.  At the very least, you’d need a common European authority providing a guarantee “wrap” for such bonds (as bond insurers have historically done with US muni bonds).

Euro Downfall?:

http://alephblog.com/2008/10/07/youre-owed-euros/

http://www.safehaven.com/article-12500.htm

Sovereign Default & the Euro:

http://blogs.ft.com/maverecon/2009/01/sovereign-default-in-the-eurozone-and-the-breakup-of-the-eurozone-sloppy-thinking-101/

Why an Italian or Greek default may not necessarily destroy the Euro.

http://www.voxeu.org/index.php?q=node/729 …or even cause them to leave it.

Bankrupt Britain?:

http://blogs.telegraph.co.uk/ambrose_evans-pritchard/blog/2008/11/24/is_britain_going_bankrupt

http://blogs.ft.com/maverecon/2008/11/how-likely-is-a-sterling-crisis-or-is-london-really-reykjavik-on-thames/

http://blogs.ft.com/maverecon/2008/11/could-the-uk-face-a-sterling-crisis-or-are-we-in-one-already/

Bankrupt ECB?:  http://blogs.ft.com/maverecon/2008/05/can-central-banks-go-broke/

Ireland Downfall:

http://www.creditwritedowns.com/2008/11/is-ireland-next-iceland.html

Sovereign Default Watch:

http://www.ft.com/cms/s/0/33940546-f874-11dd-aae8-000077b07658.html

Sucks to be Spain & Ireland.

Quantitative vs. Qualitative Easing:

http://blogs.ft.com/maverecon/2008/12/quantitative-easing-and-qualitative-easing-a-terminological-and-taxonomic-proposal/

http://blogs.ft.com/maverecon/2009/01/quantitative-and-qualitative-easing-again/

The latter also has this interesting line:  “This glaring hole in the construction of the ECB/Eurosystem – the absence of a clear, credible fiscal back-up for the ECB/Eurosystem – must be plugged forthwith.”

Qualitative Easing:

http://www.ritholtz.com/blog/2009/02/federal-reserve-off-balance-sheet-lending/

http://www.ritholtz.com/blog/2009/02/ecb-boe-assets/