Archive for February 16th, 2012

Deeper Analysis

Oil Price Posing a Risk at a Vulnerable Time

February 16, 2012

The possibility of a disorderly Greek sovereign debt default leads just about everyone’s list of economic growth risks.  Greece constitutes a small element in the European and global economies, but the potential danger is magnified by scope for speculative attacks on other vulnerable member countries including Italy and on Greece’s main creditors, a who’s who […] More

Central Bank Watch

Swedish Riksbank Repo Rate Cut to 1.5%

February 16, 2012

For the second straight meeting, Swedish monetary policy has been eased.  The benchmark repo rate had been reduced in late December to 1.75% from 2.0% in the first cut since July 2009, and it was reduced again today by a 4-2 vote to 1.5%.  Today’s result was correctly anticipated by analysts.  Both dissenters wanted to […] More

New Overnight Developments Abroad - Daily Update

Letting Greece Default Next Month Now Seen as Acceptable Gamble by Many

February 16, 2012

The once unthinkable possibility of a Greek default is now being discussed openly and is preferred by many inside and outside of Greece.  The passage of time is largely responsible for this transformation.  Contagion to other euro area members is considered less likely because of greater resources to resist such and the view that Greece’s […] More