Lawrence McDonald

Article by BBC News Greece faces “uncontrolled chaos” if it fails to agree austerity measures and defaults on its debts, Prime Minister Lucas Papademos has warned. He said ministers who disagreed with the spending cuts could not stay in the coalition government, hours after four ministers resigned over the proposals. Greek leaders are trying to [...]

Article by BBC News The EU’s 27 leaders are discussing how to create jobs and growth amid calls to go beyond enforcing budget discipline. The EU has more than 23 million unemployed people and there are fears that wide-ranging budget cuts will harm enterprise and training. The eurozone crisis is dominating the EU summit in [...]

Article by Austen Sherman and Sara Eisen, Bloomberg Whether or not Greece is able to reach an agreement on the restructuring of its debt, the country is set to “implode” as the economy contracts, according to Johns Hopkins University’s Steve Hanke. “The game is completely over,” Hanke, professor of applied economics, said at the Bloomberg Sovereign Debt Crisis [...]

The play on Europe before next Monday’s review of Greece’s austerity measures, tax collection rates, and private sector involvement, with Larry McDonald, Senior Director at Newedge.

Article By Gabi Thesing, Bloomberg The European Central Bank took a record amount of overnight deposits yesterday as the region’s financial institutions entrusted funds amassed from emergency lending operations. Euro-area banks parked 455.3 billion euros ($582 billion) with the Frankfurt-based ECB, the most since the euro’s introduction in 1999 and up from 443.7 billion euros reported yesterday. [...]

Article By Yalman Onaran, Bloomberg U.S. regulators, required by Congress to remove credit ratings from banking rules, have devised a plan anchored in a Paris-based group’s rankings that assign zero risk to most European government debt. The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency proposed rules last [...]

Article By CNBC via Reuters Italian government bond yields edged higher on Tuesday and were expected to rise further this week with investors growing nervous that thin liquidity may complicate Rome’s plans to sell 8.5 billion euros worth of debt. Ten-year Italian bond yields rose 8 basis points on the day to 7.10 percent, widening the [...]

Article By Masaki Kondo, Bloomberg There’s been no better currency in 2011 than the yen and strategists forecast more gains, even as Japan promises to intervene again in foreign-exchange markets and expands the world’s biggest debt burden. The yen’s advance against every major currency, including a 4.1 percent climb against the dollar, illustrates the anxiety in global [...]

Article By Christos Ziotis, Marcus Bensasson and Jesse Westbrook, Bloomberg Greece’s creditors are resisting pressure from the International Monetary Fund to accept bigger losses on holdings of the indebted nation’s government bonds, said three people with direct knowledge of the discussions. Lenders want the 70 billion euros ($91 billion) of new bonds the government will issue in [...]

Article By Gabi Thesing and Rainer Buergin, Bloomberg The European Central Bank will lend euro-area banks a record amount for three years in its latest attempt to keep credit flowing to the economy during the sovereign debt crisis. The Frankfurt-based ECB awarded 489 billion euros ($645 billion) in 1,134-day loans today, the most ever in a [...]