The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

FX comment: The drums of doom

“And it’s a hard, it’s a hard, it’s a hard, and it’s a hard It's a hard rain’s a-gonna fall” - Bob Dylan

Apocalyptic commentators have always struck me as trying to have a free option – when they’re wrong you forget it and when they’re right, we call them sages. Speaking of which, both George Soros and Warren Buffet (“We’ve just entered act two” and “We could be standing on the brink of the next financial crisis”, respectively) are banging the drum of doom. I don’t know what data they’re looking at but I can see a few things that could cause big problems if they all happen together.

Club Med sovereign debt yields are moving north again, Greek CDS are at all-time highs, Spain is still denying it needs an aid package – and maybe it doesn’t – but continental newspapers are predicting that an application is imminent.

Banks in those Club Med nations are the biggest borrowers of funds from the ECB. As Reuters put it early in the week: “Banks in Greece, Portugal, Ireland and Spain account for more than two-thirds of the increase in lending to eurozone financial institutions by the ECB since the summer of 2008”.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree