The Telegraph’s Ambrose Evans-Pritchard has a good article on the risk of renewed troubles for the euro zone. See here.
Ambrose qoutes me:
“The recovery is not gaining any traction. I am really quite worried about another spasm of the debt crisis over the summer,” said Lars Christensen from Markets and Money Advisory.
“Markets are beginning to lose faith that the European Central Bank can deliver stimulus, and we are seeing the return of problems in public finances in Portugal, Spain, and Italy. That is becoming a key story,” he said.
The Market Monetarist 
Christopher Mahoney
/ May 10, 2016I think that a big part of the problem in Europe is that the banking system is broken and is unable to transmit monetary stimulus:
https://research.stlouisfed.org/fred2/graph/?graph_id=306464
stirnerblog
/ May 10, 2016Maybe I am off topic but Mr. Lars can you tell me what is causing the negative interest rates? Is it CB or market uncertainty?
Thnx a lot.
Ps,
great blog and greetings from Croatia!
James Alexander
/ May 11, 2016what’s happening to you Lars? surely you are not endorsing this pseudo-Austrian “economics” claptrap that thinks monetary easing is some sort of drug?
James Alexander
/ May 11, 2016–
Lars Christensen
/ May 11, 2016Certainly not – I am talking about doubts that the ECB is committed to deliver.
James Alexander
/ May 11, 2016The increase in QE and the new TLTRO II are powerful tools. Not the most powerful, we agree NGDP LT is that, but not too bad either.
https://thefaintofheart.wordpress.com/2016/04/12/will-it-be-enough-euro-base-money-continuing-to-grow-to-us-levels/
And Euro base money will actually be much bigger relative to the size of the Euro economy.