The € EURO thread

[Toro]

JOHN TAYLOR: The ECB Is Taking On Massive Risks That Would Make Even Ben Bernanke Blush

 

[Trajan]

Let's put aside the above concerns for a minute. When all is said and done, I am still amazed that the outcome of this summit is being described as a move toward fiscal union. It is not that - it is commitment to unified fiscal austerity, nothing more. Consider just a strict enforcement of the 3% deficit ceiling in light of actual deficits in the EU. Via NPR:

Just on the surface, it is tough to see any commitment to fiscal austerity as credible. Germany itself exceeded the targets in 7 out of the past 11 years. Talk about the pot calling the kettle black. France missed 6 in the past 11 years. And Italy 8 times. Thus, in addition to the periphery nations, the biggest economies in the Eurozone will all need to increase government saving to meet these targets.

Such saving will be attempted in the context of a recession in which the private sector also will be increasing savings as well. In other words, the public sector will be engaging in massive pro-cyclical fiscal policy as the recession intensifies. You have to imagine the end result is a substantial deflationary environment.

A Mixed Bag From Europe - Tim Duy's Fed Watch

and in GOOD times, Italy , since 2000 never got above 2% a year, so, no growth then. Now? without it? the walking dead.

 

[PeteEU]

Printing presses are now running full time to keep the EU a-float until they get a working united governmental budget structure with teeth in place. This will likely take them 2 years. There will be an awful lot of printing going on until then. The Euro-zone will now become a successive string of bailouts. It started with EFSF then global coordination of central bankers & next the ESM. The Euro-zone economies will weaken in-spite of the devalued Euro. Negative GDP for some EU countries.

What planet are you on because it is certainly not on planet Earth. The Euro printing presses are not running full time.. would be nice, but they aint.

 

[Ringel05]

Printing presses are now running full time to keep the EU a-float until they get a working united governmental budget structure with teeth in place. This will likely take them 2 years. There will be an awful lot of printing going on until then. The Euro-zone will now become a successive string of bailouts. It started with EFSF then global coordination of central bankers & next the ESM. The Euro-zone economies will weaken in-spite of the devalued Euro. Negative GDP for some EU countries.

What planet are you on because it is certainly not on planet Earth. The Euro printing presses are not running full time.. would be nice, but they aint.

It's a euphemism for rampant or potentially rampant inflation.

 

[Zander]

Question: A Greek, an Italian and a Spaniard walk into a bar. Who picks up the tab?

Answer: The Americans.

 

[Dr Grump]

Question: A Greek, an Italian and a Spaniard walk into a bar. Who picks up the tab?

Answer: The Americans.

The correct answer is Germans or French...

 

[Munin]

Question: A Greek, an Italian and a Spaniard walk into a bar. Who picks up the tab?

Answer: The Americans.

Hahaha, you must be dreaming that the Americans can pay the tab. In the real world it is the Germans that pay the biggest price for the European mess.


And who pays the bill when 3 American capitalists walk into a bar?

Answer: A Chinese communist

 

[Trajan]

from the ministry of fantabulous psychopathy;


"Calls have been mounting for the ECB to act as a lender of last resort to crisis-hit euro-zone sovereign states. The ECB must boost financial stability without weakening its credibility, Mr. Draghi added as a reason for the ECB rejecting large-scale government bond buys."

who in the hell is he kidding?

ECB Will Provide Unlimited Liquidity to Banks, Draghi Says - WSJ.com

 

[Zander]

Question: A Greek, an Italian and a Spaniard walk into a bar. Who picks up the tab?

Answer: The Americans.

The correct answer is Germans or French...

not really...
Fed Bails Out European Banks
Federal Reserve Bails Out Europe. | Elliott Wave Market Service

 

[JimBowie1958]

Question: A Greek, an Italian and a Spaniard walk into a bar. Who picks up the tab?

Answer: The Americans.

The correct answer is Germans or French...

not really...
Fed Bails Out European Banks
Federal Reserve Bails Out Europe. | Elliott Wave Market Service

The Italian banks have more than $2 TRILLION in bad debt, and Spain over $1.2 TRILLION.

The ECB has only $150 BILLION and about $50 BILLION is pledged by Spain and Italy.

No one is fixing this situation. The best solution is put as much distance between you and the crash when it comes, unless you know how to surf that Mother of all financial Tidal Waves.

 

[Zander]

We are not in a recovery. We are in the early stages of a global depression. Europe is just the first domino.....wake me up in 2016.

 

[Trajan]

We are not in a recovery. We are in the early stages of a global depression. Europe is just the first domino.....wake me up in 2016.

*sigh*..

ECB lends banks $639 billion over 3 years

FRANKFURT, Germany (AP) — The European Central Bank flipped its credit tap wide open Wednesday to help Europe's troubled banking system, allowing hundreds of nervous banks to take out a record euro489 billion ($639 billion) in loans.

The move was the biggest ECB infusion of credit into the banking system in the 13-year history of the shared euro currency. It aimed to keep the Europe's debt crisis from choking off credit to businesses — since a credit crunch could cause a continent-wide recession that would make the debt loads hanging over the 17 nations that use the euro even harder to pay.

Many European banks are also having trouble borrowing normally from other banks — everyone is afraid they won't get paid back because the banks they are lending to may have large amounts of risky European government bonds.

The ECB loans to 523 banks surpassed the euro442 billion ($578 billion) in one-year loans from June 2009, when the global financial system was reeling from the collapse of the U.S. investment bank Lehman Brothers.

More at-

ECB lends banks $639 billion over 3 years - Yahoo! News


a lot of those banks had also passed stress tests back in late April early summer. this is all such BS. What is the ECB demanding as collateral backing these loans? Sovereign debt?

 

[Wiseacre]

Kicking that can. I don't see any good news coming for the EU, as far as their economy is concerned. Even if all the countries sign up for more stringent fiscal rules, they can't or won't be able to live up to whatever the new agreement is.

 

[Colin]

Hans, a middle-aged German tourist on his first visit to Orlando, Florida, finds the red light district and enters a large brothel. The madam asks him to be seated and sends over a young lady to entertain him.

They sit and talk, frolic a little, giggle a bit, drink a bit, and she sits on his lap. He whispers in her ear and she gasps and runs away! Seeing this, the madam sends over a more experienced lady to entertain the gentleman.

They sit and talk, frolic a little, giggle a bit, drink a bit, and she sits on his lap. He whispers in her ear, and she too screams, "No!" and walks quickly away.

The madam is surprised that this ordinary looking man has asked for something so outrageous that her two girls will have nothing to do with him. She decides that only her most experienced lady, Lola, will do. Lola has never said no, and it's not likely anything would surprise her. So the madam sends her over to Hans. The sit and talk, frolic a little, giggle a bit, drink a bit, and she sits on his lap. He whispers in her ear and she screams, "NO WAY, BUDDY!" and smacks him as hard as she can and leaves.

Madam is by now absolutely intrigued, having seen nothing like this in all her years of operating a brothel. She hasn't done the bedroom work herself for a long time, but she's sure she has said yes to everything a man could possibly ask for. She just has to find out what this man wants that has made her girls so angry. Besides she sees a chance to teach her employees a lesson.

So she goes over to Hans and says that she's the best in the house and is available. She sits and talks with him. They frolic, giggle, drink and then she sits in his lap.

Hans leans forwards and whispers in her ear, "Can I pay in Euros?"

 

[Jos]

Yet you can pay with paper and green ink....for now?

 

[JStone]

Yet you can pay with paper and green ink....for now?

Posting, again, during your 18-hour daily siesta, puta?

 

[Trajan]

a one stop shoppe for Britain's debt picture.....its a pretty graphic and pretty friggin awful. 400% of gdp? wow, simply wow.

the forum shrunk the image, see the original and entirely legible graphic here-

http://www.borrowmoneyonline.co.uk/images/uk-debt-infographic.jpg

 

[Trajan]

Yet you can pay with paper and green ink....for now?

Posting, again, during your 18-hour daily siesta, puta?

this is an acrimony free thread, please leave that elsewhere, thx much.

 

[Wiseacre]

From what I read, Germany is about to enter a recession or is about to. Maybe not a nasty one, but things ain't looking real good right now over there.

http://www.bloomberg.com/news/2012-...-sovereign-debt-crisis-weighs-on-exports.html

 

[Trajan]

From what I read, Germany is about to enter a recession or is about to. Maybe not a nasty one, but things ain't looking real good right now over there.

Germany on Brink of Recession as Euro Debt Crisis Damps Exports: Economy - Bloomberg

the whole joint is going down...France and Germany underwrote insurance for aprox. 240 Billion euros of sovereign debt last year, which they are going to have to cough up in the next 6 months, Italy alone has approx 1.5 TRILLION euros in debt to roll over. Spain, new election meant totally new party in power, here comes the austerity, no growth there.........Germany exports, great well, they won't be exporting much to the rest of the EU and china is slowing and will hit a real nice size speed bump here in oh 4-6 months....gonna be another long year.