For a long time now I have been saying that there would be no exit strategy and no bank reform. Now lest you think I just say these things randomly I want to point out where we are in with this. Today the financial class stuck a double blow against any notion they should be …
We know who is most exposed to Greek debt. That’s France – who are massively, suicidally exposed, followed by Germany. One if not two French banks would be unlikely to survive if Greece defaulted. What would happen to France itself is anyone’s guess. But it would not be pretty. France would have to push for …
The facts on East European/Balkan debt – who owes who. Read More »
Well according to the news ALL the bond issues in Europe went really, really well. Italy, Spain and before them Portugal all sshrugged off previously failed auctions and this week, sold the max amount in well over-subscribed auctions (ie tremendous bid to cover ratios) at low rates – and for the Spanish auction, at least, …
Don’t underestimate how significant the strikes currently going on in China are going to be. I think we will see them developing into front page news. The Honda strike that had supposedly ‘settled’ is on again. And it is spreading to other Honda plants. The real significance is that the claim it was settled was …
China strikes – don’t underestimate their importance Read More »
Here is a thought for you – I wonder if the flash point in Europe will come not from the Euro but the dollar? Or at least if the Dollar denominated debt is going to be as much of a problem for European banks as the EUro denominated debts? I think it could. Here’s why. …
We have been assured for two years this is a crisis of liquidity. It is not and never has been. But here is how those who claim it is come to their conclusion. The model of growth I tried, possibly rather badly, to lay out in the post below “Cash, Debt and the Magic of …
We, the people of GB now need to be very careful. The advice our govenment is having pressed upon them, and which they seems very eager to implement is as disasterously wrong as the advice the same financial experts, gave two years ago to our previous governemtn. Both times the advice was given as what …
In the world of finance there are roughly three things you can have. Cash, Assets or Debt. Love doesn’t appear anywhere – sorry. They run on a spectrum marked in increments of risk and return. I want to tell you this because it relates to posts I want to write later. Cash is the most …
The Swiss National Bank has for the last month or so been buying up Euros as fast as it could in an effort to stop its own currency appreciating too far. It’s interventions in the FX (Foreign Exchange) markets have been spectacular. Their buying doubled to around €230 Billion in the last month or so. …
Swiss frank going to force Eastern European defaults. Read More »
I am often rather scathing about economists, economics and finance in general. So I thought I should come clean and explain. Economics, to my mind, is much like theology and economists are alarmingly like medieval theologians. Economics and Theology are both systems of thought whose adherents have an unshakable faith that their theology embodies unalterable truths about …
