So there were the bankers cruising along in the sunshine admiring themselves when there was a sudden roaring sound and the ship started to list very badly to one side. Turns out some Greek deck hand had left the car-deck doors open and the sea was pouring in. 800 points down at one point! I …
A collapse of Greece is feared more in Paris Frankfurt and Geneva than in Athens. One of the first things that would happen is the AT least one major French bank would be blown out of the water. It would happen by it not being able to borrow AT ALL and the cost of insuring …
Stock markets all over the East fell like stones yesterday. Tokoyo dropped 3.3%, Shanghai dropped 4.1%, Australia lost 2.2% Three things are conspiring. First, worries that China’s growth may slow, either by design (by choking back on all th elending and free money flowing out) or by accident (the credit pull-back precipitates a property and …
The Greek people are doing the right thing. So far no one has AKSED the PEOPLE of Greece if they like the deal being offered them. Why should they just passively agree to be shafted by the IMF, the EU, Greek banks and the wealthy class of Greeks who will pay nothing towards the pain …
So now we come to it – the defining moment for the ECB. The ECB said it would never stoop to buying junk debt/bonds just to bail out an errant nation. This week the markets and the ECB stood toe to toe and looked for weakness; the ECB blinked first and agreed to buy any …
Portugal is on notice for another downgrade. But the real interest is in the reasons why. It’s not because of their over all debt. Its because of what Moody’s calls “its small and slow growing economy.” It’s the slow growing that should catch the eye. Moody’s are signalling that they do not believe in the …
This morning while the IMF was puffing on its announcement that it would meet and agree the plan and loan for Greece the Greeks themselves and the bond market, had other ideas. The Greeks went for the general strike and occupation of the Acropolis option. I think the socialist government is going to fall. For …
I write about China because the financial world relies on two pillars these days. The US and China. One is broke. So it behoves us to take some careful note of the other. Last week the Chinese government outlawed lending for THIRD homes. And from this weird fact comes a train of thought. To have …
Is this dip a real shift in sentiment? Or is it a blip into which a flutter of panic and a selling opportunity conspire to make something larger out of something intrinsically small? Is this when the big boys sell to the bag holders and book their profits? I don’t think so. Not yet. Not …
Europe hammers optimism – double dip or just a blip? Read More »
The ECB surrendered its last vestige of prudence over the weekend and debased its holdings yet further. The ECB agreed to continue indefinitely to accept as collateral Greek bank debt/bonds. What this means is the ECB will loan Greek banks and anyone else’s banks brand new euros in return for almost worthless junk Greek bonds/paper …
