Skip to main content

Posts

Showing posts from August 23, 2012

The Eurozone Debt crisis

I may not be a treasury specialist, but with the routine strategic planning on the swaps, forwards, derivatives, you kind of understand the factors that drive a movement in the currency. These may also be termed as the attributes that bring about the volatility in the currencies. Over the last couple of years, euro zone debt crisis has been a much talked about thing and probably it has brought a global change... Let's get into some features of this crisis: 1. What do these crisis spell? - the crisis have created the problem of debt burden to majority of the countries in the europe - rising levels of private and government debt - increasing yields over 6% that spell the concern of poor creditworthiness -economic and trade imbalances 2. How did the crisis get evolved in some of the countries? Broadly the crisis resulted from a blend of different economic factors, the globalization of finance, the easy credit conditions during the last decade, the international trade imbalances, real