Where will the land slip start? US housing again? Euro sovereign debt? Or will it be China – the great growth engine? US Housing is certainly still a multi-trillion dollar nightmare. Both Freddie and Fannie are still haemorrhaging money. Fannie just lost another $11B this last quarter and is asking for another $8B tax-payer bail …
Money talks. Politicians know this. But what they seem to have overlooked is that when you owe it, it insists. That is where we are now. So far this morning. Strauss/Kahn head of the IMF has said the EU needs to be economically integrated with a central fiscal power. What is important is not whether …
Let’s think back over what our governments have done for us in the last two years. Have governments been able to deliver on Bank reforms? No.On deceasing bank leverage? No.Setting limits to bonuses? No.On breaking up too-large-to-fail banks? No.On limiting their size in any way at all? No.On setting up a fund for use when …
Sunday I wrote Chain reaction, Yesterday the EU hawked up two of the largest gobbetts of bail out (one for Greece one for the rest) in history and the FED opened its dollar swap lines again. All whisper of exit strategies and prudent withdrawal of liquidity were shown for what they always were – empty …
Melt down postponed but not cancelled. Bail-out failure Read More »
Do you know what you can buy with 750 Billion Euros? You can buy an immediate 4.5% rise on the ftse and an immediate 4% rise on the Dow. You can get 29 of 30 stock on the Dow to go up, MarketWatch breathlessly informs us. Hurrah all is saved! Or is it. Take a …
Many years ago when I lived in London I was walking by the Thames one morning, when I came across a gentleman who had obviously fallen down on his luck. To make his morning worse, he had obviously also, fallen over. He had a large bloody bruise right in the middle of his forehead. This …
The possible scenario that I pondered in ‘Chain Reaction’ obviously is not going to happen. . Our Dear Leaders have seen to that. So I feel an apology is in order The Dear Leaders made ‘good’ on Friday’s rumour of the total bail out solution. So no melt down. Maybe you should all go and …
First off thanks to Lars. For those of you who haven’t had had a chance to read his contribution under ‘Things to Consider Next Week’ I think its worth a read or read the Guardian original under ‘EU Financial Crisis – live blog’. Second – The point is two fold – the dangers of short …
The EU/ECB ‘rescue’ package is on its way to a melt down today. First shot – The UK at today’s emergency meeting of finance ministers, has said it won’t be part of the proposed EU stability fund. That leaves a hole in the finances but a much bigger one in the political credibility. Second shot …
From now on, whether the issue is economic, financial or political, it is no longer a matter of agreements but of enforcement. The Greek government has agreed to accept the dictates of the IMF and Germany/EU. But can they enforce this agreement on their people for five weeks, five months or the five YEARS it …
