Dec 3rd, 2011
"If Merkel gets her way, Europe is on the edge of a major deflationary spiral. What this could do to the euro area, the entire EU (Britain is by no means immune), and the US is alarming. If that were to happen alongside the euro disintegrating, we have the most serious crisis in Europe since the Second World War."
-- Andrew Sullivan on the continuing collapse of the Euro and the possible results of Angela Merkel's schemes.
Showing posts with label European markets. Show all posts
Showing posts with label European markets. Show all posts
Saturday, December 3, 2011
The Euro - A Matter Of Days?
Dec 3rd, 2011
The pronouncements and dire warnings are coming at a rapid clip...
England is drawing up "emergency plans" in the event of the currency's collapse while Austria's Finince Minister speaks of "vicious" solutions. All eyes, however, are still on Germany where discussions have coalesced around Chancellor Angela Merkel's insistence that the answer to the Euro question lies in the nearly total sacrifice of member state sovereignty.
The pronouncements and dire warnings are coming at a rapid clip...
England is drawing up "emergency plans" in the event of the currency's collapse while Austria's Finince Minister speaks of "vicious" solutions. All eyes, however, are still on Germany where discussions have coalesced around Chancellor Angela Merkel's insistence that the answer to the Euro question lies in the nearly total sacrifice of member state sovereignty.
Thursday, December 1, 2011
Bailing Out The Euro?
Dec 1st, 2011
It is certainly beginning to look that way. RT reports:
"The Obama administration always denied such speculations. But after a Monday meeting this week with the two top European officials, European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso, US President Barack Obama said the European debt crisis is of“huge importance”to the United States, and that Americais“ready to do our part”in keeping the economy overseas afloat.
No further details of what he meant by"our part"were offered — probably because any attempt by the administration to hand out taxpayers' money to overseas banks would meet furious opposition in Congress and across the country.
But only two days later, the Fed, which is not accountable neither to Congress nor . . . basically anybody else, announced this deal.
Under the agreement, the FED lends dollars to the ECB, which has to transfer the money to European banks. Now it will be two times cheaper: the central banks must now pay the Fed a private-sector overnight lending rate plus 0.5 percentage point; they previously paid plus 1 percentage point. And there's no doubt that European banks that lost money on junk debt obligations of European governments will line up for almost free American cash."
Yes, this seems remarkably bad. That said, we've allowed the globalists to create so interwoven a collection weaknesses that we really might not have a choice.
It is certainly beginning to look that way. RT reports:
"The Obama administration always denied such speculations. But after a Monday meeting this week with the two top European officials, European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso, US President Barack Obama said the European debt crisis is of“huge importance”to the United States, and that Americais“ready to do our part”in keeping the economy overseas afloat.
No further details of what he meant by"our part"were offered — probably because any attempt by the administration to hand out taxpayers' money to overseas banks would meet furious opposition in Congress and across the country.
But only two days later, the Fed, which is not accountable neither to Congress nor . . . basically anybody else, announced this deal.
Under the agreement, the FED lends dollars to the ECB, which has to transfer the money to European banks. Now it will be two times cheaper: the central banks must now pay the Fed a private-sector overnight lending rate plus 0.5 percentage point; they previously paid plus 1 percentage point. And there's no doubt that European banks that lost money on junk debt obligations of European governments will line up for almost free American cash."
Yes, this seems remarkably bad. That said, we've allowed the globalists to create so interwoven a collection weaknesses that we really might not have a choice.
Saturday, November 19, 2011
A Little Liberal Catharsis
Nov 19th, 2011
Hello liberal friends and, well, everyone from Sullivan to Frum to Bartlett, etc... Feeling down? The insane machinations of a mouthbreathing American Republican Party have you in fits? Well, here's your moment to bask in a little cathartic it-could-be-worse-type-stuff. The European Union, that forward thinking body, has struck a blow against corporate speech... there's just one hitch...
Via The Telegraph:
Hello liberal friends and, well, everyone from Sullivan to Frum to Bartlett, etc... Feeling down? The insane machinations of a mouthbreathing American Republican Party have you in fits? Well, here's your moment to bask in a little cathartic it-could-be-worse-type-stuff. The European Union, that forward thinking body, has struck a blow against corporate speech... there's just one hitch...
 |
| Actual headline from a real place in the "civilized West" |
Via The Telegraph:
"EU officials concluded that, following a three-year investigation, there was no evidence to prove the previously undisputed fact.
Producers of bottled water are now forbidden by law from making the claim and will face a two-year jail sentence if they defy the edict, which comes into force in the UK next month.
Last night, critics claimed the EU was at odds with both science and common sense. Conservative MEP Roger Helmer said: "This is stupidity writ large.
"The euro is burning, the EU is falling apart and yet here they are: highly-paid, highly-pensioned officials worrying about the obvious qualities of water and trying to deny us the right to say what is patently true.
"If ever there were an episode which demonstrates the folly of the great European project then this is it."
Producers of bottled water are now forbidden by law from making the claim and will face a two-year jail sentence if they defy the edict, which comes into force in the UK next month.
Last night, critics claimed the EU was at odds with both science and common sense. Conservative MEP Roger Helmer said: "This is stupidity writ large.
"The euro is burning, the EU is falling apart and yet here they are: highly-paid, highly-pensioned officials worrying about the obvious qualities of water and trying to deny us the right to say what is patently true.
"If ever there were an episode which demonstrates the folly of the great European project then this is it."
We shit you not. Water, as officially designated by the EU, does not, repeat, does not prevent dehydration. Sleep tight.
Next on their docket? Gravity, the pernicious rumor that things "fall."
Tuesday, August 9, 2011
Cycling Decline
Aug 9th, 2011
The European markets have declined further as we are minutes away from the NY opening bell.
The European markets have declined further as we are minutes away from the NY opening bell.
Unregulated Freefall
Aug 9th, 2011
Does anybody still think we actually need less transactional regulation in the markets? Unfortunately, they probably do. However, Zachary Karabell notes:
"None of the reforms passed in the wake of the financial crisis create any breakers against synchronous global financial panic. Yes, there is less leverage and more capital in financial institutions, which is a vital difference between now and then and augurs against a repeat of what happened two years ago, but there are no circuit breakers that prevent the rolling flash-crash of the past week."
In particular, we have to roll back the "reforms" from 2006 that are allowing massive, computerized short-sells.
Does anybody still think we actually need less transactional regulation in the markets? Unfortunately, they probably do. However, Zachary Karabell notes:
"None of the reforms passed in the wake of the financial crisis create any breakers against synchronous global financial panic. Yes, there is less leverage and more capital in financial institutions, which is a vital difference between now and then and augurs against a repeat of what happened two years ago, but there are no circuit breakers that prevent the rolling flash-crash of the past week."
In particular, we have to roll back the "reforms" from 2006 that are allowing massive, computerized short-sells.
Monday, August 8, 2011
Another Black Monday? ctd...
Aug 8th, 2011
Not necessarily... but it's going to be a volatile day. AP is reporting that the Asian drops were actually expected to be worse and shines a light on some countervailing forces that might lessen the blows. With just over 4 hours to go before the opening bell in NY, its a nail-biter.
Via AP:
"Most European markets rose and Spain and Italy's borrowing costs dipped to more manageable levels on Monday after the European Central Bank said it would buy the two countries' bonds in order to help them avoid devastating defaults.
Asian markets traded lower but their retreat was not as bad as many had feared over the weekend after a downgrade of U.S. debt. Japan's Nikkei 225 stock average closed 2.2 percent lower at 9,097.56."
Not necessarily... but it's going to be a volatile day. AP is reporting that the Asian drops were actually expected to be worse and shines a light on some countervailing forces that might lessen the blows. With just over 4 hours to go before the opening bell in NY, its a nail-biter.
Via AP:
"Most European markets rose and Spain and Italy's borrowing costs dipped to more manageable levels on Monday after the European Central Bank said it would buy the two countries' bonds in order to help them avoid devastating defaults.
Asian markets traded lower but their retreat was not as bad as many had feared over the weekend after a downgrade of U.S. debt. Japan's Nikkei 225 stock average closed 2.2 percent lower at 9,097.56."
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