writedowns

The Eurozone's banks are continuing to deleverage, with total loan balances to euro area residents now at the lowest level in 5 years. What makes the situation even more troubling is that many Eurozone banks banks are repeating the Japanese…

Spain and Italy reported today that the share of bad loans have continued to rise. There is nothing to suggest that this is the peak. In fact, further deterioration is likely.

Europe has been postponing the recapitalisation of its banking sector. This column argues that it has been doing so for far too long. Without such a recapitalisation, the danger is that economic stagnation will continue for a long period,…

Editor's note: The following press release was issued by the FDIC last week regarding bank accounting gains in the quarter through 31 March.

Just to follow up on the last post, which was relatively optimistic about the eurozone, I want to show you this chart of non-performing loans in the periphery. I believe it tells a story of debt deflation and explain why the contraction in…

When I see the chart for Euro zone NPLs and look at the numbers, I think debt deflation. And this is exactly the problem with the euro zone's policy mix.

The key to Spain's turning the corner as 2013 begins is the housing market. This takes on increasing importance given the reprieve in crisis interest rates. House prices are still falling and the economy is contracting despite the…

The banks are slowly admitting losses, but Bloomberg's summary is of a slow recognition. Even so, writedowns have left the banks stranded: unable to make loans. Up until now, it appears, the banks and the government were able to carry the…

A study of European banks by the consultancy Price Waterhouse Coopers is making the rounds in the German-language press. I haven't seen the study itself but it is communicated by PwC in Frankfurt earlier today. Hence the interest in…

I don’t want to be too glib here. I recognize that policymakers are in an extremely difficult position and that there is no longer any easy solution, but railing at the markets rather than trying to understand why they are doing what they…