In theory, Friday’s deal means Spanish banks will receive €100bn (£81bn) in funding, first from the European Financial Stability Fund and then its replacement, the European Stability Mechanism (ESM). ESM bonds will also concede seniority over ordinary creditors, addressing another market concern. Italian banks, too, may be eligible for such support - but no one knows for certain. Even that massive issue, though, is dwarfed by other unknowns.
The Brussels proposals, even before they face approval by Germany’s constitutional court and any number of other national parliaments and judicial bodies, are still a long way from being agreed in and of themselves. Euro-area finance chiefs are due to hammer out the details between now and July 9...Bankers and politicians are entwined like poison ivy and a certain Karl Marx predicted all this pretty accurately. The vested interest of the political ruling class cannot be seperated from the "owners of the means of production" in this case the bankers. This is a world wide problem, the insider joke in the city is ´that Goldman Sachs runs the USA and the Bundesbank runs Europe...not actually a joke, it is true......it was the Democrat President Clinton who was persuaded by the banking mafia to relax rules on investment and retail banking being merged ( Glass Steagall ) and in the UK Brown and Blair were in awe of the city.
Cameron and Osborne are so establishment it isn't true...can you imagine the discreet conversations that they have with their banker chums in the Oxfordshire countryside ( not too hard on us old boy, dammed country can't function without us bankers etc ). Meanwhile the non owners of the means of production are getting stuffed right, left and centre. We have grown up offspring having to live with parents at 30 years of age and more....there are very few proper jobs available for this generation ( plenty of fabulous unpaid internships or work experience !! ), and unaffordable houses. Daily life is a breeze... 80 quid to fill up a family saloon with petrol, utility companies fixing pricing in a cartel so that we cannot do a thing about these costs, oil pricing out of our control..university education is now like the USA, leave with huge debts or have rich parents.Those still with jobs are fearful of redundancy and have to work goodness knows how many more hours for the same pay as last year.........so we all hope that this time the banks will be regulated but I would not bet more than a couple of quid on it.
The inter dependence of the political class and their banking chums is too great for radical action. Expect more corruption...
Cameron and Osborne are so establishment it isn't true...can you imagine the discreet conversations that they have with their banker chums in the Oxfordshire countryside ( not too hard on us old boy, dammed country can't function without us bankers etc ). Meanwhile the non owners of the means of production are getting stuffed right, left and centre. We have grown up offspring having to live with parents at 30 years of age and more....there are very few proper jobs available for this generation ( plenty of fabulous unpaid internships or work experience !! ), and unaffordable houses. Daily life is a breeze... 80 quid to fill up a family saloon with petrol, utility companies fixing pricing in a cartel so that we cannot do a thing about these costs, oil pricing out of our control..university education is now like the USA, leave with huge debts or have rich parents.Those still with jobs are fearful of redundancy and have to work goodness knows how many more hours for the same pay as last year.........so we all hope that this time the banks will be regulated but I would not bet more than a couple of quid on it.
The inter dependence of the political class and their banking chums is too great for radical action. Expect more corruption...
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The eurozone manufacturing Purchasing Managers' Index (PMI) published by Markit was 45.1 in June, unchanged from May, which was the lowest level since June 2009. Anything below 50 indicates the sector contracted.
The survey showed factories in Germany were hit as the effects of the eurozone crisis begin to widen. The German PMI fell to a 36-month low of 45.
Manufacturers shed jobs at an accelerated pace in June, with the survey's employment index falling to 46.7 in June, the lowest since January 2010.
"Companies are clearly preparing for worse to come, cutting back on both staff numbers and stocks of raw materials at the fastest rates for two-and-a-half years," said Chris Williamson, chief economist at Markit.
Ireland and Austria were the only eurozone countries to see growth in manufacturing in June. The Ireland PMI rose to a 14-month high of 53, and it was the only country in the region where manufacturing jobs actually increased. Austria's PMI was 50.1.
"Producers' input costs are now falling at the fastest rate for nearly three years, which should help boost profitability and feed through to lower inflation.
"However, their biggest fear at the moment is slumping demand rather than rising prices, with demand in home markets and further afield being hit by heightened uncertainty regarding the economic outlook as the region's economic crisis rolls on."
Output prices fell for the first time since March 2010, because of a lack of demand and strong competition, which restricted manufacturers' ability to raise prices.
The exceptions were the Netherlands, where prices rose, and Ireland, where they held steady.
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