A year after Greece received a €110 billion ($158 billion) bailout package from the European Union (EU) and IMF, the resurgence of the European debt crisis serves to illustrate that you can not cure debt with more debt. Greek debt is on its way to reach 157.7% of GDP this year, and will climb to 16…
Morningstar director of economic analysis Bob Johnson addresses recent sluggishness in the economy and makes the case for better growth in the second half of the year.
While liquidity may provide temporary relief, only debt reduction--and a creditor haircut--will put Europe back on the road to growth, says TCW's Komal Sri-Kumar.
Germany is hitting negative sovereign yields, while Spanish regions and banks seek financial assistance from their parent country, which needs a bailout of its own.