The French Bourse has lost half of the gain the ECB spent 750 billion euros buying. Half in a week. 4.5% down today. The Dow has fallen 2% and the Nasdaq almost 3% at the time of writing. The Euro has fallen against the dollar, below any level the market recognises, which means the market …
A news story at MarketWatch, which is the on-line protrusion of the Wall Street Journal, has the reassuring title -“Chinese banks safe for now”. It goes on to claim that even a thirty percent drop in property prices won’t cause the Chinese banks “to break a sweat”. Now, it just so happens that I read …
I believe the bailout has failed. I think we are already ripped from stem to stern and it is just a matter of time. Last week liquidity quite suddenly disappeared from the US stock market. In seconds an unstoppable disintegration swept away 800 points on the DOW, 10% of all value in Paris. In response …
Cuts and Debts – why the bail out may already have failed. Read More »
Every day of the first three months of this year 4 of the big American Banks found a way to making record profits. Greece collapsed. Every single day without exception, the men and women of Goldman Sachs, JPMorgan Chase, Bank of America and Citi, according to their own figures, never lost a cent. Greece, Portugal, …
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 …
