Eurozone

Formally established in 1993, the eurozone, often referred to as the “European Union,” is a political and economic union established after the ratification of the Maastricht Treaty by members of the European Community. It has since expanded to include some Central and Eastern European nations. The establishment of the eurozone provided for the creation of a central European bank and the adoption of a common currency: the euro. The idea behind the eurozone is to create a single geographical market where goods, services, and money can be exchanged freely.


Wall Street opened slightly higher on Thursday, July 2nd, as job growth slowed down in June, lowering the probability that the Federal Reserve will raise the interest rate this year. European stock markets traded lower and the mood was one…

The staying power of the Greek tragedy that has been unfolding in Greece is amazing. While this may have pleased Homer, it may also be what causes the start of the great crash of 2015. The ongoing drama in Greece,…

Greece is hours away from defaulting on its debt obligations to creditors, threatening a global stock market crash and possible eurozone economic collapse in 2015. European Union authorities are scrambling to patch together a last-minute deal to prevent a Greek…

Wall Street opened higher after suffering from the worst day of the year on Monday, June 29th. Eurozone stocks recovered after a devastating day on Tuesday but remained cautious as Greece moves towards default on a debt payment to the…

Instead of focusing on a possible interest rate hike from the Federal Reserve, investors should be worried about a eurozone economic collapse in 2015. At least that is according to Marc Faber, the editor of the popular Doom, Boom, and…

Former Chief Executive Officer of Pacific Investment Management Co. (Pimco) Mohamed El-Erian predicts there is an 85% chance that Greece will leave the eurozone within the next few weeks. This would possibly spark a period of extreme market volatility. (Source:…

On Monday June 22nd, Greece extended an olive branch to its European creditors by proposing structural reforms to its welfare state. European markets took a dive last week when negotiations stalled over how to best reform Greece’s pensions system. International…

Negotiations between Greece and its European creditors fell apart on Sunday as delegates came to an impasse over spending cuts. To fund the interest payments on its debt to the International Monetary Fund (IMF), Greece must find a resolution before…

On Tuesday June 2, 2015, Eurostat, the European Union’s statistics office, released the eurozone area’s inflation data for May, which is at an annualized rate of 0.3%. (Source: Eurostat, June 2, 2015.) All Components Increased Except for Energy The positive…

Greece’s government officials and representatives of the International Monetary Fund (IMF), European Central Bank (ECB), and European Commission met on Thursday, May 28, 2015 to discuss Greece’s debt situation. When the meeting finally began, there was no start on drafting…

On Wednesday, May 6, Greece made a 200-million-euro (US$220 million) repayment to the International Monetary Fund (IMF). Although Greece managed to find enough cash for this interest payment, it’s far from time to relax. The country owes a 750-million-euro payment…

Irrationality prevails in global stock markets and I believe it’s because of the actions of central banks. What’s happening with central banks and their involvement with equity markets not only is unprecedented, but it also will not end well. Japanese…

The stock market has shifted its focus to the first-quarter earnings season. Based on early expectations, it will be an ugly quarter for U.S. companies, specifically the multinationals. Expect Continued Disappointment for Rest of First-Quarter Earnings Season A few weeks…

Greece’s Anti-Austerity Platform Reimagined What happens if Greece exits the eurozone? We’ll have to wait until the end of June to find out. Or at least be subject to four more months of pundits explaining what could happen. That’s because…

For the next little while, I am watching three events—I’ll call them developments—very closely. These developments could impact gold prices and cause sharp movements to the upside in a very short time. What are these developments? Talks of Greece’s potential…

Greece, one the most troubled nations in the eurozone, has elected a radical left-wing political party named the Syriza that’s against the austerity measures placed on Greece by the “troika”—that’s the European Central Bank (ECB), the European Union (EU), and…