Capitalism is like a pure glass of water. Then govt drips the sewage of socialism into the pure water until it becomes toxic, and then they blame the capitalism for the toxic outcome. Hours after an all-night summit of euro governments ended, flaws began to emerge in a package that was billed as a “grand and comprehensive” solution to the European debt crisis. The concerns were led by Germany’s powerful central bank, which expressed fears that a plan to leverage a €440 billion eurozone rescue fund to amass a “fire power” of €1 trillion, or £880 billion, resembled the risky finance methods that triggered the crisis in 2008. EU leaders are expected to sanction the establishment of a so-called special purpose investment vehicle, or SPIV, to be set up in the coming weeks. It is aimed at attracting investment from countries such as China and Brazil. Jens Weidmann, the president of the Bundesbank and a member of the European Central Bank, sounded the alarm over the plan to “leverage” the fund by a factor of four to five times without putting any new money into the pot. He warned that the scheme could be hit by market turbulence with taxpayers left holding the bill for risky investments in Italian and Spanish bonds. The important thing to remember is that we get what we deserve, we wanted our houses to increase in value, we wanted to make out we were middle class, we were fed lies so others could gain, like little children we were taken advantage of, but do you know that 90% of you wont want to see that, with heads in sand you will lie to yourselves till the end, you are lambs to the slaughter. The problem is the same one you have suffered from for 1000's of years, usury(interest) many times though history you have been told, but like the thick monkeys you are you cant work it out, look it is easy 1+1 = 2 and not 1+1 = 2.2, now until you can work that one out I suggest you give up money and go back to bartering. “Their priority is that we pay back our loans.”" WOW! Who' "da thunk"? Novel concept. Why is it the Left thinks the world owes them a living? Why is it even when the bondholders are willing to take a haircut at 50%, the Socialists still whine? It sucks when socialists run out of other peoples money. Socialism will bankrupt a country in time. You can only rob Peter to pay Paul so many times until Peter is broke too. The underlying cause of our global economic mess is government socialism interfering in the markets like when the US Congress, via social(ist) engineering, forced banks to make loans to people who should have never gotten the loans in the first place & government buying votes through excessive spending for everyone with a handout.
Access Investments-Building Awareness - European Union-ROMANIA
Friday, October 28, 2011
Capitalism is like a pure glass of water. Then govt drips the sewage of socialism into the pure water until it becomes toxic, and then they blame the capitalism for the toxic outcome. Hours after an all-night summit of euro governments ended, flaws began to emerge in a package that was billed as a “grand and comprehensive” solution to the European debt crisis. The concerns were led by Germany’s powerful central bank, which expressed fears that a plan to leverage a €440 billion eurozone rescue fund to amass a “fire power” of €1 trillion, or £880 billion, resembled the risky finance methods that triggered the crisis in 2008. EU leaders are expected to sanction the establishment of a so-called special purpose investment vehicle, or SPIV, to be set up in the coming weeks. It is aimed at attracting investment from countries such as China and Brazil. Jens Weidmann, the president of the Bundesbank and a member of the European Central Bank, sounded the alarm over the plan to “leverage” the fund by a factor of four to five times without putting any new money into the pot. He warned that the scheme could be hit by market turbulence with taxpayers left holding the bill for risky investments in Italian and Spanish bonds. The important thing to remember is that we get what we deserve, we wanted our houses to increase in value, we wanted to make out we were middle class, we were fed lies so others could gain, like little children we were taken advantage of, but do you know that 90% of you wont want to see that, with heads in sand you will lie to yourselves till the end, you are lambs to the slaughter. The problem is the same one you have suffered from for 1000's of years, usury(interest) many times though history you have been told, but like the thick monkeys you are you cant work it out, look it is easy 1+1 = 2 and not 1+1 = 2.2, now until you can work that one out I suggest you give up money and go back to bartering. “Their priority is that we pay back our loans.”" WOW! Who' "da thunk"? Novel concept. Why is it the Left thinks the world owes them a living? Why is it even when the bondholders are willing to take a haircut at 50%, the Socialists still whine? It sucks when socialists run out of other peoples money. Socialism will bankrupt a country in time. You can only rob Peter to pay Paul so many times until Peter is broke too. The underlying cause of our global economic mess is government socialism interfering in the markets like when the US Congress, via social(ist) engineering, forced banks to make loans to people who should have never gotten the loans in the first place & government buying votes through excessive spending for everyone with a handout.
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Running the experiment by cutting off subsidised lending to Greece and seeing what would happen was the obvious thing to do. It had to be avoided by the American banks. For Obama it is enough to put it of till after the election next year. The City incidentally gets protection too.
This costs and it is Merkel who holds the IOUs. She played the political tangents superbly. Germany will be richly rewarded.
Berlusconi controls the EZB so he will decide about the need for printing but no doubt he will consult with she who has just been obeyed.
I'll give the markets 3 weeks to extract the cash and then it'll be business as usual.,,,
The banks get to pay out $16 Billion in bonuses, whilst posting a "Loss" and European superstate politicians won't need to guess how they will pay for Christmas.... until at least 2057.
We on the "pay for it" side will just need to know if we're expected to Gas then, Burn them or scatter their ashes.....
Anyone know a "crooked" electrician?
“It is tied to higher risks of losses and to increased sharing of risks,” said Mr Weidmann. “The way they are constructed, the leveraging instruments are not too different from those which were partly responsible for creating the crisis, because they concealed risks.”
Bill Gross, the founder of Pimco, the world’s largest bond fund, said the eurozone rescue would be a temporary fix for markets and that the fund could pose a high-risk for investors.
“No bazooka but should stabilize markets for now,” he messaged on the Twitter site yesterday. “Watch out if the plan is a giant SIV (structured investment vehicle) with levered risk.”
The plan to increase the European Financial and Stability Facility to €1 trillion on paper was attacked by economists as not enough to “stave off” worsening debt problems in Italy and Spain.
In a survey of economists, 26 of 48 thought the firepower was not enough. A plan for a €2 trillion fund was shelved after German and French opposition.
Doubts also emerged over the lack of detail on a proposal to let Greece help pay its rapidly mounting debt burden by negotiating a voluntary “haircut” that would allow it to write off about half of its debts.
Under the deal, private sector banks agreed to start negotiations on a nominal 50 per cent cut in bond investments to reduce Greece’s debt burden by €100 billion, cutting its debts to 120 per cent of GDP by 2020, from 160 per cent now.
At the same time, the eurozone will offer “credit enhancements” or sweeteners to the private sector of €30 billion.
Senior EU officials were left admitting that there was no agreement on how the deal would translate into a reduction in the Greek debt.
Greek opposition parties to the Left and Right united to condemn the eurozone deal amid mounting social conflict.
Antonis Samaras, the conservative opposition leader, said: “We are not closer to the solution but are faced with nine years of collapse and poverty.”
Dimitris Papadimoulis, a Left-wing MP, said new EU powers in the agreement to impose austerity measures on Greece had a conflict of interest. “Those who monitor us do not have our interests in mind,” he said. “Their priority is that we pay back our loans.”
you put your finger on the nucleus of the poodle. This was about protecting American banks till after the election next year. (The City got protected incidentally also.)
Geithner´s hectoring did not work, so USA´s politicians and bankers tried a different tack.
Merkel (ie Germany) holds the IOUs. She will collect her pounds of flesh on her terms and at her time-table
The UK Prime Minister has been rebuffed by both France and Germany after asking for a guarantee that closer fiscal union between the eurozone's 17 members would not lead to discrimination against Britain and the break–up of the EU's single market. The Government is concerned that legislation could be forced through by a new eurozone bloc and wants to be able to veto decisions if they would damage Britain's economic interests.
A secret diplomatic note seen by The Daily Telegraph disclosed that, at a summit last weekend, Mr Cameron sought to make moves towards tighter union within the eurozone conditional on safeguard guarantees for Britain. "The euro area shall consider and develop concrete and effective mechanisms to ensure that the integrity of the internal market at 27 is fully preserved and that the interests, including essential economic interests, of non–participating member states are fully protected," said the text.
According to European diplomats, Mr Cameron is trying to rally support for the proposal among member states before a December summit that will begin negotiations on "limited treaty change". "He's getting nowhere," said a source. "It is clear that this is Britain's bottom line in negotiations on a new EU treaty but the tide is against him."
Both Nicolas Sarkozy and Angela Merkel oppose the suggestion. The French president said he was "sick" of being told what to do on the euro crisis by the Prime Minister and the German chancellor dismissed the plan as an "all–purpose optout" for Britain.
Bill Cash, the chairman of the Commons European scrutiny committee, warned that a eurozone union would hijack the EU's single market and damage the British economy by imposing regulations that benefit Paris or Frankfurt over the City of London. "The Government has been completely outmanoeuvred," he said.
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