Despite the unprecedented increase in the ECB’s asset purchase program, the spread of Southern Europe sovereign bonds versus German ones is rising.
The ECB balance sheet has soared to more than 42% of the eurozone’s GDP, compared to the Fed 27% vs U.S. GDP. However, at the same time, excess liquidity has ballooned to more than 2.1 trillion euros.
Continue reading The ECB Cannot Disguise Risk Much LongerThe recent jobless claims figures show how difficult it will be for the U.S. recovery to be as quick and strong as initially expected.
Continue reading U.S. Depression? The V-Shaped Recovery Fades AwayThe pace at which emerging market economies are losing FX reserves is staggering. In March, emerging economies lost around $1.5 billion in foreign exchange reserves per day, according to Bloomberg.
The Eurozone economy is expected to collapse in 2020. In countries like Spain and Italy, the decline, more than 9%, will likely be much larger then emerging market economies. However, the key is to understand how and when will the eurozone economies recover.
Continue reading Three Reasons Why The Eurozone Recovery Will Be Poor