DAVOS - Hopes that Germany might crumble, and agree to the sort of things that would help resolve the crisis – a bigger firewall, some form of debt Maturalization, bolder central bank intervention – have been further dashed here. Angela Merkel, the German Chancellor, has been as defiant as ever. Of course, any kid with an O level in economics will know that if you lend countries money so that they can buy from you, sooner, or later, you will come unstuck. And the euro and Germany is coming unstuck big time. So much so, the last I heard was that no German banks were lending to any country other than Germany - nice!Therefore, why Germany is refusing to accept the inevitable outcome of its failed economic practices is beyond any reasonable comprehension. I guess, the only reason could be that, if it agrees the countries can't pay back their debt and the troikas are not that stupid to bailout Germany's debtors so that they can pay their debts to Germany giving it an unfair advantage over us (who are also owed), then Germany itself will have to give one hell of a Barber of Seville haircut to its euro zone debtors - basically all the euro (and non-euro) using EU member states which were all practically bankrupt when they were admitted to the suicide pact called the EU.
The question we have to ask is what happens after Greece defaults, it's never going to be able to pay off it's loans no matter how many times the money markets threaten to break someone's legs. There will come a point where people will turn around and say no and then those put in power by the money markets will be run out of town.It also doesn't make a whole bit of difference if the whole of EuroZone is rated below AAA by Standard and Poor. The crisis is too deep and will be too long lasting for any of the measures now being talked about to effective. I am wondering what will their approach be after Obama is re elected, probably more of the same I expect. As this recession continues into a long term depression I am wondering how long it will take for Joe public to realize they have been had over all the deficit, debt reduction bull. Because any QE here or in the US doesn't kick start the economy but goes into the pockets of the very people who caused the crisis in the first place.
Headlines ...lies and stupid "IDIOTS" like Rehn blowing wind !
• Spanish unemployment reaches 5.3m, or 22.8%, raising the prospect that Spain could ask Brussels for a softening of its deficit targets
• EU commissioner Ollie Rehn says a Greece deal is 'very close' with another meeting of the Greeks and creditors tonight
• A sharp fall in business lending in the eurozone has increased fears of a second credit crunch
• Portuguese bond yields have continued to rise on fears that the indebted country may need a second international bailout
• EU commissioner Ollie Rehn says a Greece deal is 'very close' with another meeting of the Greeks and creditors tonight
• A sharp fall in business lending in the eurozone has increased fears of a second credit crunch
• Portuguese bond yields have continued to rise on fears that the indebted country may need a second international bailout
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DAVOS, Switzerland—After receiving nearly half a trillion euros in cheap loans from the European Central Bank last month, the Continent's banks face a dilemma: to invest the money in lucrative but potentially risky government bonds or hoard the cash at a loss.
The choice reflects the uncertainty surrounding Europe's financial system at a time when dark clouds continue to hover over the euro-zone economy and its common currency. Regardless of whether banks use the money to buy bonds or simply stash it at the central bank for safekeeping, consumers and businesses are unlikely to see much of the funds pumped ...
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