The Great Debate UK

What’s next in EMU after Greece deal?

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Jane Foley-Jane Foley is research director at Forex.com. The opinions expressed are her own.-

The European Union has finally agreed that an Economic and Monetary Union member country in serious fiscal difficulties will be able to receive bi-lateral assistance from its Eurozone partners as well as draw support from the International Monetary Fund.

Following weeks of discord, it had become politically important that there be a show of unity on how to deal with fiscally errant members.

In this sense the announcement of an agreement was an important step in the right direction.  The proof of the pudding is in the eating, however.

from MacroScope:

Brit Euro Shock Horror: Part II

A week ago we ran a post on MacroScope noting, in part, that Britons have a strange relationship with the euro, sometimes bordering on disbelief that it exists at all. Some new numbers from the monthly Bank of America Merrill Lynch fund managers poll underline the extent of UK scepticism compared with that of others.

For two months, BofA Merrill has asked fund managers around the world what they think will eventually happen as a result of the Greek debt crisis. Four choices are on offer:

Is Hyde Park for sale?

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Laurence_Copeland- Laurence Copeland is a professor of finance at Cardiff University Business School and a co-author of “Verdict on the Crash” published by the Institute of Economic Affairs. The opinions expressed are his own. -

So Bundestag members have been suggesting Greece sell an island or two, or maybe even the Acropolis, in order to pay off its mountainous debts?

The Greek story is not over yet

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Jane Foley- Jane Foley is research director at Forex.com. The opinions expressed are her own.-

By rushing extra austerity measures through parliament last week and finding very good support for its bond sale Greece last week pulled its way clear of the edge of the abyss.  This is not the end of the story, however, but rather just another chapter in the fledging system which is European Monetary Union.

from MacroScope:

Brit shock horror: euro to survive

Euro brezinys_EC1

Britons have never really got the euro zone. "Its not really going to happen, is it?" was a typical question from a City analyst to Reuters back in the mid-90s. The political drive behind the creation of the monetary union was beyond many in eurosceptic Britain.

So the results of a straw poll at an event sponsored by independent City advisers Lombard Street Research were somewhat suprising.  A hundred or so mainly British investors were asked whether the euro would be around in five years with its current membership. Response was about 80 percent saying yes to 20 percent saying no.

from The Great Debate:

Embrace reality, not fight speculation

Stock up on canned goods, the authorities appear to be opening a new front in the War Against Speculation; this time taking aim at the people who might profit from Greece and its European partners' woes.

Just days after the U.S. Securities and Exchange Commission voted new limits on short selling, Germany is investigating the credit default swap trading of speculators to try to prevent them from profiting from any bailout of Greece.

from Breakingviews:

Goldman Sachs needs to admit it made mistakes

By Chris Hughes

Even the mighty Goldman Sachs makes mistakes. The Wall Street bank's decision to help Greece keep some of its debts hidden from public view in 2001 was one of them.

The transaction allowed the Greek government to present accounts which understated the state's liabilities by 1.6 percent of GDP.

An alternative view of the crisis in Greece

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Mark Bolsom1-150x150.jpg-Mark Bolsom is the Head of the UK Trading Desk at Travelex, the world’s largest non-bank FX payments specialist. The opinions expressed are his own.-

Greece has been dominating the headlines lately with many commentators heavily criticising its burgeoning deficits and perceived threat to eurozone stability. But is such heavy criticism really justified, or are the Greeks simply being made scapegoats for systematic failings? After all, Greece did not cause the current financial crisis, but is instead one of the major victims.

Is a queue forming at the EU’s fiscal soup kitchen?

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copelandl- Laurence Copeland is a professor of finance at Cardiff University Business School and a co-author of “Verdict on the Crash” published by the Institute of Economic Affairs. The opinions expressed are his own. -

Back in the prehistory of the euro zone, I wrote an article in the Times trying to work out how the game currently being played out in Europe would end.

from The Great Debate:

Watch banks for clues on Greece

-- James Saft is a Reuters columnist. The opinions expressed are his own. --

As odd as it sounds, concerns about the effects of a euro zone sovereign crisis on Europe's still poorly capitalized banks may prove to be the tipping point that leads to a swifter bailout of Greece.

While discussion of contagion may seem very 2008, the problems with Greece, which faces a huge fiscal deficit, are becoming tougher for euro zone authorities to leave uninsured.

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