After the fanfare of last week's G20 meeting - which by general consensus was a big disappointment - the Financial Times is reporting there could be another summit before Christmas. Last week's meeting in Cannes ended on Friday with no decisions taken to expand the size of the eurozone bail-out fund, either by involving the International Monetary Fund or by expanding the role of the European Central Bank. The FT says this morning that a deal failed because Germany's central bank vetoed one element of a proposed rescue package. The plan under discussion involved IMF nations paying more into the fund, and an increase in liquidity which eurozone nations could have used to expand the bail-out fund. If the Bundesbank can be persuaded to back this plan, then a meeting of G20 finance minsters could be called either this month or next, the newspaper said. The G20 is not due to meet again until February, which many leaders regard as too far away when markets are so uncertain. Back to Armageddon, the European Financial Stability Facility, the eurozone rescue fund, has raised €3bn via a bond sale, but had to pay more than expected and met modest interest, banking sources told AFP. Demand was only slightly more than the €3bn on offer and the effective rate or return paid to buyers of the bonds was 3.59pc, higher than anticipated, the sources said. Italy was dragged deeper into Europe's debt crisis on Monday as its borrowing costs soared to their highest level since the euro was created. The yield, or interest rate, on 10-year Italian bonds leapt to 6.66% on Monday, as Silvio Berlusconi's government prepared for a key vote on the country's public finances on Tuesday. Analysts warned that Italian yields were now approaching the "danger area" where a bailout looks a real risk. Stock markets around Europe fell sharply, amid concern that the debt deal hammered out in Brussels less than two weeks ago will not fix the crisis. "The current feeling is that Italy is too large to bail out with the current mechanisms in place, should Greek-like turmoil spread to Italy," warned Peter O'Flanagan of Clear Currency. The FTSE 100 was down 1.6%, at 5,435. Banks bore the brunt of the falls – with Lloyds Banking Group down 4.7%, Barclays down 3.4% and Royal Bank of Scotland down 3.2%.The French CAC and the German DAX also fell, by 2.1% and 1.9% respectively.
6 comments:
Freddie Mac receiving $6 billion of tax payers money every quarter as well as tens of billions in previous bailouts to stay afloat.
Result: $4 Million severance package
I get the feeling that there is an unholy scramble by the ultra-rich to get as much into their offshore tax havens before the system collapses.
But then what would these people do? They seem to exist for one reason only and that is to just become even more wealthy. Greed, is a very strange bed partner.
Just as a matter of interest (sorry!) what's the downside to the following cunning plan ... Jan 1st 2012 - all interest on all debt ceases to be an obligation on the borrower (Sharia style by the way). I mean ALL - personal, corporate and sovereign alike. The legal obligation would be simply to repay the capital borrowed over time.
Of course nobody would lend their money to anybody thereafter.
Good. We would all have to live on what we earn for a change. It's called work and reward, folks
Italian borrowing costs hit new record in debt crisis”
It is really time now for the public to wake up. Don’t get side tracked by the theatrical displays by the opposing political parties; they are there to distract the public from what is really going on. The bankers run the global economy, and it truly is the very few elite, indeed much less than the 1% quoted. Many people think that the term “New World Order” is a terminology used by the conspiracy theorists; I personally believe the N.W.O is becoming a reality. Just look at what has been going on in the Middle East, how long will it be before Iran is attacked? The elite have been able to manipulate the masses in the past, it is known as the Hegelian Dialectic (problem, reaction, solution). The problem quite simply is that the western economies are in a position of unsustainable debt that was caused by the introduction of derivatives. The derivatives were unregulated and therefore enabled the very few to make an absolute fortune. Unfortunately the very many, you and I, have been paying for their greed through stagflation, as extra money was pumped into the system (quantitative easing). Simply put QE is adding to our debt and not resolving the fundamentals, make no mistake at all, the bailouts will only buy us time and make the problem much worse down the road. Okay that’s the problem highlighted. The elite need to manipulate a reaction to this problem, therefore they try to create a bogyman and highlight through the media there perceived concerns such as Iran is developing nuclear power to attack other nations, umm like Saddam Hussein having weapons of mass destruction or maybe Colonel Gadhafi being such a tyrant to his people. Okay that’s the reaction sorted out, the solution, which has always been predetermined, is to invade the countries to reduce the threat of war, or to liberate the people, well so they tell us, but I guess the more educated people know otherwise.
The debt based monetary system that has been going strong since 1971 (When Richard Nixon took the dollar of the gold standard) is going to collapse big style, nothing will prevent it, the problem should have been sorted many years ago, but no politician had the strength of character to stand up to the ruling elite. I truly believe that the greedy irresponsible bankers should be jailed, instead of them continuing to award themselves obscene bonuses. I certainly am not anti-capitalism, just anti corrupt crony capitalism. The occupy Wall Street movement have been called anti-capitalist, they are not, they just want to see a move away from crony capitalism.
Just as a matter of interest (sorry!) what's the downside to the following cunning plan ... Jan 1st 2012 - all interest on all debt ceases to be an obligation on the borrower (Sharia style by the way). I mean ALL - personal, corporate and sovereign alike. The legal obligation would be simply to repay the capital borrowed over time.
Of course nobody would lend their money to anybody thereafter.
Good. We would all have to live on what we earn for a change. It's called work and reward, folks!
LONDON—The euro zone's bailout fund managed to sell its latest bond amid dour market sentiment Monday after postponing it last week, although demand from investors was just enough to cover the €3 billion amount.
The European Financial Stability Facility's 10-year bond attracted just over €3 billion in orders, nowhere near the blockbuster turnout for the first bond it issued in January, when orders totaled €44.5 billion for a €5 billion, five-year bond
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