Sunday, July 29, 2012

Libor scandal: European developments

Eurozoneremarks - Libor compilation

Dear reader,

there has been some reporting on the Libor. Here are some of those developments:

Oct 2nd 2012
NL Dutch Justice dept examines Rabobank's role in Libor: report (
Jul 26th 2012 * Belgium Dexia and Belfius considering [legal] steps against Libor scandal []
Jul 26th 2012 * Belgium Dexia hopes to get money from Libor fraudsters [de Standaard]
Jul 24th 2012
EU Libor Fixers May Face Jail In Future Under EU Markets Plan
Jul 25th 2012
EU EU Commission pushes for clampdown on Libor-style rigging
Jul 24th 2012
Germany Deutsche Bank's own Libor probe clears board-sources
Jul 20th 2012 * Germany 'Internal investigation at Deutsche Bank on Libor' [De tijd]
Jul 28th 2012
UK Britain to flesh out framework for Libor review
Jul 27th 2012
NL Dutch Central Bank DNB investigates Rabobank

* = Dutch, # = German, % = French language

Jul 4th 2012
Opinion: Worry about idiocy not inflation (part5-II) Undetected risk - Humans

note: as usual there will be some updates during the next couple of weeks

Saturday, July 14, 2012

Germany: Economists and public divided (ESM debate)

Eurozoneremarks - German ESM debate

Dear reader,

The German constitutional court was addressed by some plaintiffs recently who wanted the court to declare German ESM participation unconstitutional (and thus void). The ESM is now very much in the focus of German public and economists alike. The publication by 170+ economists led by professor Sinn sparked a heated debate in Gerrmany. In order to stay informed here are some of the most important newspaper articles and blog entries contributing to this debate:

Jul 5th 2012 #
Should the debate on the euro crisis get broader (Blicklog) [also containing a compilation of links]

Jul 28th 2012 #
Schaeuble accuses Ifo-helm of using „thumb calculations“ (FAZ)
Jul 25th 2012 #
Krämer wants peace (Handelsblatt)
Jul 25th 2012 #
Economists' debate about euro crisis escalates (t-online)
Jul 19th 2012 *
Peter Bofinger and Lex Hoogduin discuss euro crisis solutions (University of Amsterdam public event)
Jul 17th 2012
Spiegel: Is German Economist Exacerbating Euro Crisis?
Jul 15th 2012
Guardian Is Europe ready to give up national autonomy for the sake of the euro?
Jul 14th 2012

German court must decide on rescue fund by Sept: Juncker
Jul 14th 2012 #
Regling²:'States have no liability for bank rescues' (FAZ) ²= current EFSF and future ESM chief
Jul 14th 2012 #
Direct help for banks: future ESM chief contradicts Schäuble (Die Welt)
Jul 14th 2012 #
Economist debate: 'Germany worsened the downturn' (Die Welt)
Jul 14th 2012

Germany’s government: On the home front
Jul 14th 2012 #
HW Sinn: crisis states should be able to leave the eurozone temporarily (Die Welt)
Jul 13th 2012
Audio: Paul de Grauwe (Interview): Trust between Eurozone leaders can create self-fulfilling positive outcomes
Jul 11th 2012 # Austria Economist Felderer views ESM skepticly (Der Standard)
Jul 11th 2012
CNBC: A 10-Hour Day in a German Court, Boring? Think Again
Jul 11th 2012 #
Professor Paul Kirchhoff: We are playing with fire (FAZ)
Jul 11th 2012
Telegraph: Ambrose Evans-Pritchard: Merkel breaks German law on ESM rescue
Jul 11th 2012
WSJ: Euro Rescue in Limbo: German Constitutional Court Wants to Help Berlin
Jul 11th 2012

EIR: German Economists Mobilize Against ESM
Jul 10th 2012 #
Sinn takes on Merkel: (
Jul 10th 2012 #
Bundesbank president doubts the ESM rules (FAZ)
Jul 10th 2012
WSJ: Why Germany's Court Won't Kill the Bailout Fund
Jul 10th 2012
DW: German court may take its time over European Stability Mechanism
Jul 10th 2012
Spiegel: Bigger Delay to ESM: Court May Take Longer to Rule on Euro Measures
Jul 10th 2012 * NL: Schäuble:'Delay of ESM could cause more unrest' (RTLZ)
Jul 10th 2012
VoxEU EU banking union disunites German economists
Jul 10th 2012 * NL: Karlsruhe' judges upon ESM (NOS)
Jul 10th 2012

FT Alphaville: Whose recap is it anyway?
Jul 9th 2012
Reuters: Analysis - Euro zone fragmenting faster than EU can act
Jul 9th 2012
NYTimes Paul Krugman: Sinners, Repent !
Jul 9th 2012 #
[German parliament president] Lammert critizes economists' debate (Focus)
Jul 9th 2012 #
Eichengreen vs Sinn: German appeal outrages star economist (FTD)
Jul 9th 2012
VoxEU In support of a European banking union, done properly: A manifesto by economists in Germany, Austria and Switzerland
Jul 8th 2012 * NL: War of economists in Germany (BNR)
Jul 8th 2012 #
Crisis policy: Gauck¹ demands more clearity from Merkel (Die Zeit) ¹=German president

Telegraph: Angela Merkel is wrong, say 172 economists
Jul 7th 2012 # Switzerland The Euro can't be saved with money (Tagesanzeiger)
Jul 6th 2012 #
Heated debate about banking union: Schäuble calls it 'horror reports' (FAZ)
Jul 5th 2012
WSJ: German Economists to Launch Protest Against Latest EU Agreements
Jul 5th 2012 #
Economists defend Merkel's course (Der Spiegel)
Jul 4th 2012 * NL: ESM: a political lie ? (DFT)
Jul 2nd 2012
Spiegel: Decision on July 10: German Court Could Issue Injunction against ESM
Jun 19th 2012 #
German constitutional court: The price of democracy (FAZ)
Jun 18th 2012 #
The ESM: savior fund or bad bank ? (FAZ)

# = German , *= Dutch language

note: as usual there will be some updates in the upcoming days, weeks, months

last updated: July 29h 2012 13:00 CET

Some comments found on Twitter:

@pdegrauwe: (via Twitter)
Jul 7th 2012
1.23 pm In 2008 German public money was used to bailout German banks. 160 German economists did not protest. Now they do: banks are not German
Jul 6th 2012
11.25 am It's very sad how so many German economists are carried away by collective mood of nationalism and stir nationalism in Germany
Jul 6th 2012
10.18 am 150 German economists protest against European bailout of European banks. How many of them protested against German bailout of German banks?

Tuesday, July 3, 2012

The great euro swindle - when everybody is cheating (video/ger)

Dear reader,

this documentary is just like those masterpieces by Robert Peston BBC on the Euro. There are many interviews with leading figures responsible to start the common European currency going back to the first agreements between President Chirac and Chancellor Kohl. Some people interviewed: Jean-Claude Juncker (Lux) , Ottmar Issing (Bundesbank, Ger), Hans Tietmeyer (Bundesbank) Hans Eichel (germ. finance minister), Theo Waigel (Germ. finance minister), Greek helm of public debt management agency, Greek finance minister etc etc.

It shows how politics not economics played a major role in letting most of the countries in trouble now into the euro area. It shows how not only Greece cooked their books but also Germany fiddled its numbers, how German politicians put pressure on the Bundesbank to turn a blind eye. And how everyone was wondering about Greek data from its office of statistics.

45 mins, german, streaming video: 1st public German TV network ARD  
                                                       alternative server (flash required) 

Yannos Papantoniou: I Brought the Euro to Greece (Foreign Affairs, Apr 25th 2013)