A brief peek into euro land debt might give a picture of what to expect in the next few months. Everyone keeps talking about how Germany will/must/can bail out Greece – oh and France as well of course. I think before we feel the solution is at hand if only Germany would grasp it, we …
A couple of days ago in ‘Europe’s non-linear moment, I mentioned how Italy suddenly had a very nearly failed debt auction. Only just enough buyers to cover the debt. Failed auctions are bad news. At this time seriously bad news. Today Italy had another auction. It was, as one ‘strategist’ was quoted as saying, “… …
Miraculous or suspicious – Italian bond sales and market rallies. Read More »
China recently introduced new restrictions and prohibitions on banks lending for THIRD homes. So no property bubble there then. A week or so later , earlier this week the Australian government said it was tightening rules on foreign nationals buying properties in Australia. The Prime minister, who was the one who relaxed the rules a …
Everyone was taken by surprise by the Spanish downgrade. No one more so than the Spanish. But I believe the reasons for the downgrade do lend suport to what I was arguing in “Peering over the Cliff”. There I argued that the big indebted banks in every country would not survive by seeking profit in …
S&P downgrades Spain. Obama is said to be concerned about the European situation and the media are trumpeting how ‘we’ have already made a profit on our bail out of the banks. These things are related. Spain is downgraded. Why? Spain has less debt than Greece and more earning power than Portugal. But it has …
I know Greece is the main story today. But for that reason it is being covered by all the main outlets. What can I add? I don’t have their contacts or man power. So I think I can best help by looking ahead a little. While Greece and Germany are locked together in an unhappy …
So Greek sovereign debt is now junk. Which means they not only can’t borrow on the markets, but also can’t now borrow from the ECB. EBC won’t accept junk bonds. So with the Greek National bank unable to borrow, Greece’s banking and financial sector is also unable to borrow. Which is at least part of …
Despite all the assurances from the IMF and the EU that ‘Everything is fine, Greece is going to be bailed-out, reprimanded, forced to make cuts that would make your gonads shrivel and made to write out 64 Billion times, ‘I shall not lie about my debt”, despite all that, today the yield (the interest rate …
Sometimes its good to think back to the way we were. Just to see how far we’ve come. Let’s go back to March 08. Seems like another era – because it was. Back then Trichet, head of the ECB said, the ECB did not approve of the FED’s policy of accepting rather dubious mortgage backed …
So far the Greek melodrama is playing out almost exactly to script. And all the players are playing their stereotypes to a tee. The latest this morning is that there is no deal until Greece spells out details of its austerity cuts not only for this year but next as well. Why spell it out? …
