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Bailout

This tag is associated with 4 posts

In just one Word, why Germany Refuses to End the Crisis in the Euro Area: “Leverage”

(Analysis) The drama in the euro area continues with no clear end in sight. Recession, unemployment, and worsening sovereign debt levels – all exacerbated by flawed policies of austerity pursued in weaker performing economies, continue to be reported and forecast into the future. Because the crisis in the euro area directly resulted from the financial … Continue reading

Toxic Asset Shock Impeding Bank Lending to Real Economy

(Analysis) As US banks still remain underwater six years after the onset of the 2007-8 financial crisis, their lending to the real economy – to both business and consumers, is still falling when measured relative to their net assets (see chart. Net assets are total assets minus intangibles like goodwill). This is one very strong … Continue reading

Banks Still Underwater 6 Years Later

(Analysis) There has been a lot of content in different media outlets about how many homeowners are underwater – when the money that they still owe on their mortgage is more than their home’s current market value. Less attention has been paid to a similar phenomenon among banks here in the US: when the money … Continue reading

Europe’s Woes a Lesson for Budget Hawks

(Analysis) At the direct instigation of Germany, many eurozone countries are being forced to swallow a bitter pill: government budget cuts at a time of recession and high unemployment. The remedy of drastic cuts to government spending in order to balance a government’s budget during a recession is being forced again – this time on … Continue reading