This is what happens when there is structural imbalance for far too many
economies. Unfortunately there are no good economists and consequently nobody
knows how to get the world's economies back into equilibrium. One thing is for
sure though, those with more than their fair share of manufacturing production
and employment, like Germany and China, will need to come to terms with
supporting the other economies. Only then will a softer landing be able to be
negotiated for everyone.... "Unfortunately there are no good economists and
consequently nobody knows how to get the world's economies back into
equilibrium" But the West has gobbled all the Nobel Prizes in Economic year
after year. They can land a hand, can't they? Btw, Paul Klugman is giving advice
free on New York Times daily. Me as an 'economist' without proper training
suggest to the westerners, to start, spending less and save more. The
equilibrium will come, someday and somehow....Well...It would be interesting to
see what the USA would do if the Chinese decided to buy massive amounts of Gold
on comex options and decide they want physical delivery at the end of the
contract period rather than the profit/loss in yet more dollars. The Fed would
not be happy at all that the physical gold gets shipped off to China....They
have in the past made it illegal to own physical gold. I say :...Well...China's
growth bubble is slowing down very quickly. They naturally want to protect
their own industries and investments and are wary of risk now. They have bought
over 2 trillion of European and US debt to prop up those economies and to
encourage world trade supporting Chinese exports worldwide for years. Now the
party may be over....or is it ???..Just wait till they ask for their money
back...
Access Investments-Building Awareness - European Union-ROMANIA
Sunday, September 2, 2012
The Chineese?..Just wait till they ask for their money back...
This is what happens when there is structural imbalance for far too many
economies. Unfortunately there are no good economists and consequently nobody
knows how to get the world's economies back into equilibrium. One thing is for
sure though, those with more than their fair share of manufacturing production
and employment, like Germany and China, will need to come to terms with
supporting the other economies. Only then will a softer landing be able to be
negotiated for everyone.... "Unfortunately there are no good economists and
consequently nobody knows how to get the world's economies back into
equilibrium" But the West has gobbled all the Nobel Prizes in Economic year
after year. They can land a hand, can't they? Btw, Paul Klugman is giving advice
free on New York Times daily. Me as an 'economist' without proper training
suggest to the westerners, to start, spending less and save more. The
equilibrium will come, someday and somehow....Well...It would be interesting to
see what the USA would do if the Chinese decided to buy massive amounts of Gold
on comex options and decide they want physical delivery at the end of the
contract period rather than the profit/loss in yet more dollars. The Fed would
not be happy at all that the physical gold gets shipped off to China....They
have in the past made it illegal to own physical gold. I say :...Well...China's
growth bubble is slowing down very quickly. They naturally want to protect
their own industries and investments and are wary of risk now. They have bought
over 2 trillion of European and US debt to prop up those economies and to
encourage world trade supporting Chinese exports worldwide for years. Now the
party may be over....or is it ???..Just wait till they ask for their money
back...
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Potential foreign buyers of Spain's sovereign debt are likely to wait on the sidelines, however, until the efforts to clean up the financial sector start to show that banks are beginning to lend again to the euro zone's fourth-largest economy, said Jordi Fabregat, a finance professor at Esade Business School in Barcelona.
Additional clarity about European Union countries' willingness to help weaker brethren could also draw investors. Those outcomes could take months or years.
The latest measures show "Spain's determination to comply fully with the requirements" to get financial support from the EU, said European Monetary Affairs Commissioner Olli Rehn.
The government hopes to limit its ownership in the bad bank to 50%, with private investors taking the rest. Finance Ministry officials indicated on Friday that they hoped to take a page from the Irish model for cleaning up the banking sector while avoiding its pitfalls. Many analysts say the Irish government paid too much for the banks' bad assets.
Spain wants to focus on the transfer of land and unfinished buildings that account for half of the €180 billion in problematic property assets held by banks. The government still has to specify potential purchase prices.
Bankia, the ailing lender that is a focal point of Spain's banking crisis, stands to shed a significant amount of toxic property. Spain's fourth-largest bank by assets, Bankia on Friday posted one of the largest losses on record for Spain's financial sector. It posted a loss of €4.45 billion after booking loan losses of about €6.57 billion. The bank said an extensive cleanup of its balance sheet conducted since the government took it over in May spawned total charges of about €7.5 billion. The losses were in line with projections disclosed by the company's management after the government's takeover, Bankia Chairman José Ignacio Goirigolzarri said.
Spain's bank bailout fund plans to inject capital immediately into Bankia before the first tranche of EU aid to the Spanish financial sector is made available, which likely will arrive by November. The bridge funding could be between €4 billion and €5 billion.
Potential foreign buyers of Spain's sovereign debt are likely to wait on the sidelines, however, until the efforts to clean up the financial sector start to show that banks are beginning to lend again to the euro zone's fourth-largest economy, said Jordi Fabregat, a finance professor at Esade Business School in Barcelona.
Additional clarity about European Union countries' willingness to help weaker brethren could also draw investors. Those outcomes could take months or years.
The latest measures show "Spain's determination to comply fully with the requirements" to get financial support from the EU, said European Monetary Affairs Commissioner Olli Rehn.
The government hopes to limit its ownership in the bad bank to 50%, with private investors taking the rest. Finance Ministry officials indicated on Friday that they hoped to take a page from the Irish model for cleaning up the banking sector while avoiding its pitfalls. Many analysts say the Irish government paid too much for the banks' bad assets.
Spain wants to focus on the transfer of land and unfinished buildings that account for half of the €180 billion in problematic property assets held by banks. The government still has to specify potential purchase prices.
Bankia, the ailing lender that is a focal point of Spain's banking crisis, stands to shed a significant amount of toxic property. Spain's fourth-largest bank by assets, Bankia on Friday posted one of the largest losses on record for Spain's financial sector. It posted a loss of €4.45 billion after booking loan losses of about €6.57 billion. The bank said an extensive cleanup of its balance sheet conducted since the government took it over in May spawned total charges of about €7.5 billion. The losses were in line with projections disclosed by the company's management after the government's takeover, Bankia Chairman José Ignacio Goirigolzarri said.
Spain's bank bailout fund plans to inject capital immediately into Bankia before the first tranche of EU aid to the Spanish financial sector is made available, which likely will arrive by November. The bridge funding could be between €4 billion and €5 billion.
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