( Read more... )

The sovereign debt crisis is claiming yet another casualty as EU leaders try to manage fears that this next leg in the ongoing global financial crisis is spiraling out of control.

ItalyRates on Italian bonds hit a new all-time EU high on Friday, with the yield on the 6 month auction coming in at 6.5%, nearly double the 3.35% seen at the end of ( Read more... )

Start the countdown clock to another leg down in the ongoing Global Financial Crisis

• Merkel: Time to design a "New Europe"
• Markets: Contagion spreading beyond control
• Eurozone: No plans to rescue Italy
• Think Tank: 65% Chance of severe banking crisis by month's end

CNBC
Market Selloff: 'Contagion Spreading; They've Got to Stop This'
Fears that Italy, the ( Read more... )

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Apologies in advance for the large numbers of posts this week - obviously, this has been an extraordinary month so far - on par with the crisis months of 2008, in fact.

CNBC/NYT
Contagion - Why Problems in Italy Should Scare US Banks

In early 2010, top officials at the Federal Reserve began to wonder: how would United States banks hold up through ( Read more... )

by Gaius Publius on 1/14/2011 02:34:00 PM



Paul Krugman has an excellent, major magazine piece at the Times on the prospects for Europe and the euro, as both climb out of crisis, painfully and slowly. Its title is "Can Europe Be Saved?" and the title is apt. The answer is not necessarily Yes.

Almost everyone knows something about ( Read more... )

Worst Global Recession Since Depression Deepened in Q1

Bloomberg:
German, Italy Economies Shrank at Record Pace in First QuarterThe German and Italian economies contracted more than forecast in the first quarter, slumping the most on record after the global financial crisis crippled exports and investment across Europe ( Read more... )