Europe ignores credit dynamics

December 13, 2011

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

Europe‘s rule-based approach to fiscal reform will fall short because it effectively ignores the dynamics of credit markets, which laid the tracks along which this train wreck traveled.

Waiting for deus ex ECB

November 10, 2011

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

It looks as if we will need to see some kind of miracle intervention from the European Central Bank — a Deus ex ECB — or the euro zone is heading for a nasty divorce.

Europe’s three simple problems

November 3, 2011

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

The plan to rescue the euro zone faces only three hurdles; democracy, reality, and supply and demand.If they can overcome those, it is going to work perfectly, and, amazingly, they just might.

Switzerland ties itself to euro mast

September 8, 2011
James Saft is a Reuters columnist. The opinions expressed are his own.

HUNTSVILLE, Ala. – It is clear we are living in a strange world when Switzerland, that most euro-skeptic of nations, has tied its fortunes to the success, in its current fragile form, of the euro zone common currency.

As politics fails, will central banks step back

August 18, 2011
James Saft is a Reuters columnist. The opinions expressed are his own.

HUNTSVILLE, Ala,  – We’ve grown accustomed to central banks swooping to the rescue when events overtake governments’ ability to address economic and market fractures.

ECB set for an error for the ages

March 29, 2011

In a field of endeavor with a long and glorious history of folly, the European Central Bank is preparing to commit an error for the ages: hike interest rates into the face of a crisis of existence for the euro zone.

Good luck hedging against inflation

February 3, 2011

Looking to hedge against a spike in inflation? Equities may not be much help.

Neither, for that matter, will you do all that well over the longer haul with bonds, cash or even commodities, at least on the historical evidence. In short, when it comes to investing, inflation is a real drag.

Waiting for Europe’s QE to sail

December 2, 2010

The good news is that the European Central Bank will probably start a massive additional round of quantitative easing to fight the break-up of the euro zone.