Global Financial Crisis (4 Viewers)
- Thread starter Dostoevsky
- Start date
This is one of the best posts I have ever seen. It is a retort to the jackass Keynesian economist Paul Krugman who wrote a blog on Greece.
http://krugman.blogs.nytimes.com/2010/05/12/are-we-greece/
I've personally come to the conclusion that Krugman wants to destroy the United States. That's the only way his economics make any fucking sense.
http://krugman.blogs.nytimes.com/2010/05/12/are-we-greece/
I've personally come to the conclusion that Krugman wants to destroy the United States. That's the only way his economics make any fucking sense.
Sarkozy threatens to pull France out of Euro currency group
SAPA-AFP Published: 2010/05/14 11:04:22 AM
French President Nicolas Sarkozy threatened to pull his country out of the euro currency group to force Germany to help Greece with its debt crisis, El Pais newspaper reported Friday, quoting Spanish Prime Minister Jose Luis Rodriguez Zapatero.
Sarkozy made the threat at a Brussels summit of EU leaders last Friday that sealed a rescue package, Zapatero told a meeting with leaders of his Socialist Party on Wednesday, the newspaper reported.
Germany, Europe’s biggest economy, has been the most reluctant euro nation to help the Greek government.
However the French president demanded “a commitment by everyone, for everyone to help Greece, each according to his means or France would reexamine its situation in the euro,” Zapatero was quoted as saying.
The Brussels summit finally agreed a 110-billion-euro (140-billion-dollar) three-year package of loans and credit guarantees for Greece, which had risked defaulting on its huge debts.
“France, Italy and Spain put up a common front against Germany and Sarkozy went so far as to threaten to break the traditional Franco-German axis,” according to another person at the meeting. France and Germany are traditionally considered the central motor of EU initiatives.
Spain and Portugal also face major debt problems and Zapatero announced new austerity measures on Wednesday.
El Pais said the Spanish leader has used increasingly dramatic rhetoric in recent days to convince his party of the gravity of the crisis facing the euro.
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Might as well end the EU right now.
SAPA-AFP Published: 2010/05/14 11:04:22 AM
French President Nicolas Sarkozy threatened to pull his country out of the euro currency group to force Germany to help Greece with its debt crisis, El Pais newspaper reported Friday, quoting Spanish Prime Minister Jose Luis Rodriguez Zapatero.
Sarkozy made the threat at a Brussels summit of EU leaders last Friday that sealed a rescue package, Zapatero told a meeting with leaders of his Socialist Party on Wednesday, the newspaper reported.
Germany, Europe’s biggest economy, has been the most reluctant euro nation to help the Greek government.
However the French president demanded “a commitment by everyone, for everyone to help Greece, each according to his means or France would reexamine its situation in the euro,” Zapatero was quoted as saying.
The Brussels summit finally agreed a 110-billion-euro (140-billion-dollar) three-year package of loans and credit guarantees for Greece, which had risked defaulting on its huge debts.
“France, Italy and Spain put up a common front against Germany and Sarkozy went so far as to threaten to break the traditional Franco-German axis,” according to another person at the meeting. France and Germany are traditionally considered the central motor of EU initiatives.
Spain and Portugal also face major debt problems and Zapatero announced new austerity measures on Wednesday.
El Pais said the Spanish leader has used increasingly dramatic rhetoric in recent days to convince his party of the gravity of the crisis facing the euro.
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Might as well end the EU right now.
Greece should NOT be bailed out, and neither should the Eurozone bankers. But Greece IS NOT going to be bailed out, but rather the Eurozone bankers will be, at the expense of us.
All of these bailouts need to stop as they DO NOT WORK AND NEVER HAVE.
After all the jawboning about defending the Euro through opening swap lines and dishing out bailouts, the currency only appreciated in value for 12 HOURS, then continued on with its slip-n-slide down against other currencies.
Just 12 hours of support? The market figured out this shit will not work even quicker than expected. And that's really bad news for the EU.
All of these bailouts need to stop as they DO NOT WORK AND NEVER HAVE.
After all the jawboning about defending the Euro through opening swap lines and dishing out bailouts, the currency only appreciated in value for 12 HOURS, then continued on with its slip-n-slide down against other currencies.
Just 12 hours of support? The market figured out this shit will not work even quicker than expected. And that's really bad news for the EU.
Huge cuts in welfare spending are being proposed in California as the state struggles with a budget deficit of $19bn.
Governor Arnold Schwarzenegger said the state had no choice but to eliminate spending programmes that help more than one million poor people.
The governor and his Republican colleagues refuse to raise taxes.
Democrats say they will not agree to a budget that protects tax breaks for business at the expense of child care.
'Shaking the tree'
Just as governments in countries hit by recession have been cutting welfare spending, so California's governor has proposed the same for a state with the 8th largest economy in the world and a looming budget deficit of $19bn.
Some social programmes have already been cut.
Now Mr Schwarzenegger wants to eliminate a scheme that helps more than a million people looking or training for work.
With unemployment still above the US average and tax revenues last month $3bn lower than hoped, he said California had no choice.
The Republicans argue that raising taxes would stifle private sector job creation and slow any economic recovery.
Mr Schwarzenegger said: "California no longer has low-hanging fruit. As a matter of fact, we don't have any medium-hanging fruit. We also don't have high-hanging fruit.
"We literally have to take the ladder from the tree and shake the whole tree."
California's constitution requires its budget to be approved by a two-thirds majority of lawmakers.
They are often gridlocked and the state's budget problems mount up.
BBC
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Looks like Kyle has to find a new way to make a living
Governor Arnold Schwarzenegger said the state had no choice but to eliminate spending programmes that help more than one million poor people.
The governor and his Republican colleagues refuse to raise taxes.
Democrats say they will not agree to a budget that protects tax breaks for business at the expense of child care.
'Shaking the tree'
Just as governments in countries hit by recession have been cutting welfare spending, so California's governor has proposed the same for a state with the 8th largest economy in the world and a looming budget deficit of $19bn.
Some social programmes have already been cut.
Now Mr Schwarzenegger wants to eliminate a scheme that helps more than a million people looking or training for work.
With unemployment still above the US average and tax revenues last month $3bn lower than hoped, he said California had no choice.
The Republicans argue that raising taxes would stifle private sector job creation and slow any economic recovery.
Mr Schwarzenegger said: "California no longer has low-hanging fruit. As a matter of fact, we don't have any medium-hanging fruit. We also don't have high-hanging fruit.
"We literally have to take the ladder from the tree and shake the whole tree."
California's constitution requires its budget to be approved by a two-thirds majority of lawmakers.
They are often gridlocked and the state's budget problems mount up.
BBC
---
Looks like Kyle has to find a new way to make a living
Spanish debt auction comes close to failure
By David Oakley
Published: May 18 2010 18:09 | Last updated: May 18 2010 18:09
Spain came close to its first debt auction failure on Tuesday, highlighting the funding problems for weaker eurozone economies.
The government’s difficulties in selling €6.44bn ($7.96bn) in one-year and 18-month bills sparked worries over its 10-year debt auction on Thursday.
Madrid had planned to issue €8bn, but only just attracted that amount of bids, with yields at record highs. This prompted debt managers to reduce the size of the sale by €1.56bn. Normally a government bill auction would be covered at least 1.5 times.
Steven Major, head of fixed income at HSBC, said: “The Spanish auction was very disappointing and does not bode well for further issuance. It’s becoming more apparent just how difficult it is for Spain, which is a big worry so soon after the launch of the international rescue package.
“It suggests the European Central Bank may have to buy a lot more bonds than it first thought to prop up some of the peripheral eurozone bond markets.”
The ECB has so far bought €16.5bn in government bonds, mainly short-dated Greek, Portuguese and Spanish debt. Some analysts say the central bank may have to buy up to €600bn to maintain stability in the markets.
Spain’s problems contrasted with successful auctions of Dutch and Irish bonds. The Dutch sold €5bn of 30-year bonds in one hour. The Irish sold €1.5bn in four-year and 10-year bonds, both more than three times covered.
The Dutch have relatively healthy public finances and are rated triple A while the Irish have convinced the markets they can push through tough austerity measures.
It shows how investors are now differentiating, not just between core eurozone countries, but between the peripheral countries of Greece, Portugal, Spain, Ireland and Italy.
Italy successfully sold five-year and 15-year debt last Thursday with relatively low yields. Most investors remain sanguine about the country’s public finances.
Portugal also successfully sold short-term debt last Wednesday, although this was partly helped by the ECB shoring up the markets early last week.
Financial Times
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Uhhh, that's not close to failure. That IS failure. A failed bond auction. When bids only came in for 80% of the debt they were offering, that is a failed auction.
The EU is cooked.
By David Oakley
Published: May 18 2010 18:09 | Last updated: May 18 2010 18:09
Spain came close to its first debt auction failure on Tuesday, highlighting the funding problems for weaker eurozone economies.
The government’s difficulties in selling €6.44bn ($7.96bn) in one-year and 18-month bills sparked worries over its 10-year debt auction on Thursday.
Madrid had planned to issue €8bn, but only just attracted that amount of bids, with yields at record highs. This prompted debt managers to reduce the size of the sale by €1.56bn. Normally a government bill auction would be covered at least 1.5 times.
Steven Major, head of fixed income at HSBC, said: “The Spanish auction was very disappointing and does not bode well for further issuance. It’s becoming more apparent just how difficult it is for Spain, which is a big worry so soon after the launch of the international rescue package.
“It suggests the European Central Bank may have to buy a lot more bonds than it first thought to prop up some of the peripheral eurozone bond markets.”
The ECB has so far bought €16.5bn in government bonds, mainly short-dated Greek, Portuguese and Spanish debt. Some analysts say the central bank may have to buy up to €600bn to maintain stability in the markets.
Spain’s problems contrasted with successful auctions of Dutch and Irish bonds. The Dutch sold €5bn of 30-year bonds in one hour. The Irish sold €1.5bn in four-year and 10-year bonds, both more than three times covered.
The Dutch have relatively healthy public finances and are rated triple A while the Irish have convinced the markets they can push through tough austerity measures.
It shows how investors are now differentiating, not just between core eurozone countries, but between the peripheral countries of Greece, Portugal, Spain, Ireland and Italy.
Italy successfully sold five-year and 15-year debt last Thursday with relatively low yields. Most investors remain sanguine about the country’s public finances.
Portugal also successfully sold short-term debt last Wednesday, although this was partly helped by the ECB shoring up the markets early last week.
Financial Times
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Uhhh, that's not close to failure. That IS failure. A failed bond auction. When bids only came in for 80% of the debt they were offering, that is a failed auction.
The EU is cooked.