Remember how French President Hollande was saying a month ago that the euro crisis is over? Well, he was wrong. Today Portugal's yields on 10-year paper vaulted to as high as 7.9% before settling back down again. Just two months ago, yields were at 5.23% and Portugal was going to market with a 10-year bond offering.
The Socialist opposition leader is saying that the country needs to abandon austerity as unemployment, business bankruptcies and non-performing loans skyrocket. Meanwhile the government is following the dictates of the Troika by pursuing an aggressive and front-loaded austerity campaign with the hopes of qualifying Portugal for an OMT-style exit from the current bailout program. It's not working.
I never believed this approach would work but events on the ground had been prov...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.