• Bank bankruptcy or bailout? 1 Apr 2008
• Last bankruptcy tonight: America West Bank 1 May 2009
• Bankruptcy expert says ‘not at all’ possible for quick Chrysler bankruptcy 30 Apr 2009

• Fitch: US Money Fund Exposure to European Banks Remains Significant 24 Jun 2011
• Regionals have CRE and Construction exposure 29 May 2008
• Santander: US, Spanish and UK mortgage exposure 28 Apr 2008

• On QE’s Effect on Gold, Emerging Markets and Other Links 4 Nov 2010
• The Fed, Gold, and Gold Stocks 6 Nov 2010

• Stephen Colbert: The Word – Honor Bound 19 Jan 2010
• News Links: Corzine Rebuffed Internal Warnings on Risks at MF Global 6 Dec 2011

• Bill Black: To rob a country, own a bank 30 Mar 2010
• Bill Black: Hijacking protests for political gain 18 Oct 2011
• Black: Stress tests and the Big Lie 9 May 2009

• Market Still Facing Major Risks 10 Dec 2010
• Greece risks financial Armageddon while Ireland makes cuts 13 Dec 2009
• Davos leaves Nouriel Roubini downbeat about policy coordination and Egypt contagion risks 31 Jan 2011

• American Casino: How foreclosures breed mosquitoes 10 Sep 2009
• FDIC Friday Night Special: American Sterling Bank 17 Apr 2009
• FDIC Friday Night Special: American Southern Bank 24 Apr 2009

• Spanish local governments struggling with bust 19 May 2008
• More on the S&P bear market and the central bank liquidity train 4 Oct 2011
• Full Text: G7 Finance Ministers’ and Central Bank Governors Statement on Financial Markets 7 Aug 2011

• Auerback: In Europe, national solvency first, then aggregate demand 11 Nov 2011
• The European problem 19 Feb 2009
• Europe’s Other Bank Problem 13 Oct 2011

• Bankrupt global financial institutions 9 Jul 2008
• PIMCO’s El-Erian on the global shake-up and the European sovereign debt crisis 28 May 2010
• Global asset re-pricing 10 Oct 2008

• BofA carrying loans on books for $44 billion above fair value 27 Feb 2009

• Chart of the day: Italian bonds back over 6% 20 Oct 2011
• Why Investors will buy Italian bonds after ECB monetisation 6 Nov 2011
• Italian yields now well above 6% 31 Oct 2011

• BofA is nuts: still going to acquire Countrywide 11 Jun 2008
• More reason BofA is crazy to take on Countrywide 25 Jun 2008
• Bankruptcy expert says ‘not at all’ possible for quick Chrysler bankruptcy 30 Apr 2009

• Euro, US Equities Prove Unable To Sustain Bounce 9 Jun 2010
• Issing: Greek 50% haircut, euro zone exit; euro bond fans ‘gravediggers of stable euro’ 28 Sep 2011
• The Correlation between Currencies and Equities 18 May 2011

• No Mr. President, Larry Summers Did Not Resolve the Financial Crisis for a Pittance, He Just Papered Over the Problem 29 Oct 2010
• Danish banking crisis the worst in Europe 24 Sep 2008
• The problem with comprehensive banking crisis solutions 24 Nov 2008

• Bear market is far from over 19 Aug 2011
• The US is officially in bear market territory 4 Oct 2011
• How This Bear Market Compares 13 Oct 2008

• Making Money from Municipal Waste 10 Sep 2010
• The Exponentiality of Municipal Costs (and Some Advice for Endowments and Foundations) 14 Mar 2011
• Buyers Beware: Municipal Bond Prices Don’t Reflect Financial Stress 13 Jun 2010

• Sheila Bair blames the Fed for the credit crisis 14 Jan 2010
• Sheila Bair explains FDIC strategy to Bartiromo 16 Sep 2009
• Sheila Bair speaks out to CNBC 28 Apr 2009

• Dollar Broadly Firmer As Contagion Spreads To Spain In Europe 16 Jun 2011
• Stress and Contagion Return To Europe 5 Nov 2010
• Links: 2010-04-28 Greece Goldman Greed (and Fear) 28 Apr 2010

• The $50 Billion Myth – Facebook and Goldman Sachs 17 Jan 2011
• The FDIC to get credit from banks even while banks restrict lending 22 Sep 2009
• So what are banks for, anyway? 15 Jan 2010

• Euro Testing May 10 High, Helped By Strong Euro Zone Sentiment Survey 29 Jul 2010
• Satyajit Das: Defaults Are Needed in Euro Zone 3 Mar 2011
• The Irish stress tests and euro zone options: monetisation, default, or break-up 31 Mar 2011

The claims about “unsustainable deficits” gained new urgency this week as S&P warned that it was downgrading US federal government debt from stable to negative (see here for recent debate).

This appeared to be a blatantly political move, designed to influence the debate in Washington, adding fuel to the fire to cut budget deficits.

The deficit hysteria has nothing to do with economics, government solvency, or involuntary default. A sovereign government can always make payments as they come due by crediting bank accounts—something recognized by Chairman Bernanke when he said the Fed spends by marking up the size of the reserve accounts of banks.

• Next Stop: US sovereign debt downgrade 16 Jul 2008
• US government discusses Fannie and Freddie bankruptcy 9 Jul 2008
• Citigroup talks with US Government as bankruptcy looms 22 Nov 2008

• Pushing on a string and similar notions on monetary policy ineffectiveness 2 Dec 2008
• Depression in Japan 2 Feb 2009
• Notes on Japan 8 Mar 2011

• One Step Forward in the Euro Zone? 16 Jan 2011
• Three options for the euro zone: monetisation, default, or break-up 29 Nov 2010
• Slovakia first euro-zone nation to reject Greek aid package 4 May 2010

• How to tackle systemic malaise 25 Sep 2008
• Janet Tavakoli on the Foreclosure Crisis and Systemic Fraud Issues 14 Nov 2010
• Video: Geithner calls for single agency to oversee systemic risks 26 Mar 2009

• Are NATO expansion plans smart? 8 Aug 2008
• Greek bailout news 1 Feb 2010
• The Greek Tragedy Continues 23 Apr 2010

• GM headed for bankruptcy 27 May 2009
• Estonia and Latvia: headed for the rails 13 Aug 2008
• George Soros: Europe is headed for recession 11 Sep 2008

• Quick thoughts on Irish sovereign debt crisis 23 Sep 2010
• Irish sovereign debt interest rate spreads 31 Oct 2008
• Ireland nationalizes Anglo Irish bank 15 Jan 2009

• Ambac may file bankruptcy soon 10 Nov 2009
• The Tribune files for bankruptcy 8 Dec 2008
• Ambac is going to zero fast 2 Jul 2008

• Stat of the Day: Ireland now fifth for highest government default probabilities in the world 23 Sep 2010
• Stat of the Day: California now in top ten for highest government default probabilities in the world 12 May 2010
• Stat of the day: Highest default probabilities are Greece, Venezuela, Argentina 5 May 2010

• Large bank loses $7.9 billion: CDS involved 20 Jul 2009
• Abu Dhabi sovereign wealth fund loses $125 billion 15 Jan 2009
• Goldman loses $2.1 in the third quarter 16 Dec 2008

• All bubbles are equal, but some bubbles are more equal than others 10 Nov 2009
• Why the euro gets weaker when national governments deficit spend 23 Jan 2010
• Poll: Will Greece default? 27 Apr 2010

• News from 1930: Closing of Bank of United States 13 Dec 2009
• A few thoughts about the banking crisis response in the United States 17 Mar 2009
• Seven more bank failures brings total to 64 24 Jul 2009