Roubini Highlights
On the occasion of Dr. Nouriel Roubini’s participation in Bloomberg Businessweek’s ‘Interview Issue’, a look back at some of the economist’s sharpest words from the last year.
Bloomberg video below.
Remember China?
Yes, sometimes the economy matters.
White Shanghai index, green industrial production YoY.
Courtesy Macrobusiness.
ECB’s Discreet Help for Greece
It has been a truly “inverse” European summer with the Eurostoxx ripping higher. With the EUphoria one almost tends to forget about Greece and the situation developing there. Some takes via Spiegel.
“There is no time to lose,” Jean-Claude Juncker warned just a few days ago. Leaders must use “all means at their disposal” to save the currency union, the head of the Euro Group said. But one thing is becoming clear: Politicians are increasingly pushing the dirty work on to the European Central Bank (ECB).
Take Greece, for example, where liquidity is becoming scarce. The government in Athens needs to repay a maturing bond worth €3 billion ($3.7 billion) to the ECB by Aug. 20. The solution to that problem seems paradoxical: The ECB itself is pumping money into Greece, so that the country can in turn repay the ECB.
It’s a controversial plan, because the central bank is prohibited from financing governments directly. As a result, no one is talking openly about the absurd flows of money. The ECB has only hinted that it will extend a helping hand to Greece.
Japan Update
Guest post by Marc Chandler.
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