A total of £36.2bn was wiped off the UK's biggest companies on Monday as the FTSE 100 dropped 2.6pc. European markets lost more. The Stoxx Europe 600 index fell 3.2pc; the French CAC and German Dax sank 3.4pc each; Italy's MIB dropped 4.7pc and Spain's Ibex fell 3.5pc. US markets also fell, with the deadlock on plans to cut America's debt driving the declines. The costs of insuring Spanish, Italy and French debt rose. The International Monetary Fund (IMF) said global growth was "slowing down". Min Zhu, IMF's deputy managing director, said: "Last year the world had 5pc GDP growth rates by IMF PPP measures, we forecast this year 4.4pc, with the downgrade in October it became 4pc. And I can tell you even that number becomes too optimistic. If we further adjust that, it can only go down, particularly for the advanced economies."Investors were shocked by the rapid downward revision of the Bundesbank's prediction: five months ago, the central bank forecast growth of 1.8pc in 2012. On Monday in its monthly bulletin it said Europe's powerhouse economy could suffer "pronounced" weakness if the euro zone debt crisis continued. The Bundesbank sharply lowered Germany's growth forecast for next year to 0.5pc - savagely knocking confidence in Berlin's ability to solve the rapidly intensifying crisis. Meanwhile there were fears that France would succumb to spiraling borrowing costs as Moody's warned that the country could lose its cherished AAA rating. The doubts pounded confidence in Europe's fragile rescue mechanisms. The ability of the European Financial Stability Facility (EFSF) to raise debt would be seriously damaged if France lost its credit rating. The bail-out fund - designed as Europe's €1trillion "big bazooka" - has already struggled in the bond markets while leaders deliberate over the funds structure. How many times do we have to say it. We will not print money. Every German knows the history of the Weimar Republic. A better solution is an expanded EFSF combined with austerity. The markets need to give us time to adjust our constitutional constraints to allow for a further commitment to the facility.
Access Investments-Building Awareness - European Union-ROMANIA
Tuesday, November 22, 2011
"If you want a vision of the future, imagine a german boot stamping
A total of £36.2bn was wiped off the UK's biggest companies on Monday as the FTSE 100 dropped 2.6pc. European markets lost more. The Stoxx Europe 600 index fell 3.2pc; the French CAC and German Dax sank 3.4pc each; Italy's MIB dropped 4.7pc and Spain's Ibex fell 3.5pc. US markets also fell, with the deadlock on plans to cut America's debt driving the declines. The costs of insuring Spanish, Italy and French debt rose. The International Monetary Fund (IMF) said global growth was "slowing down". Min Zhu, IMF's deputy managing director, said: "Last year the world had 5pc GDP growth rates by IMF PPP measures, we forecast this year 4.4pc, with the downgrade in October it became 4pc. And I can tell you even that number becomes too optimistic. If we further adjust that, it can only go down, particularly for the advanced economies."Investors were shocked by the rapid downward revision of the Bundesbank's prediction: five months ago, the central bank forecast growth of 1.8pc in 2012. On Monday in its monthly bulletin it said Europe's powerhouse economy could suffer "pronounced" weakness if the euro zone debt crisis continued. The Bundesbank sharply lowered Germany's growth forecast for next year to 0.5pc - savagely knocking confidence in Berlin's ability to solve the rapidly intensifying crisis. Meanwhile there were fears that France would succumb to spiraling borrowing costs as Moody's warned that the country could lose its cherished AAA rating. The doubts pounded confidence in Europe's fragile rescue mechanisms. The ability of the European Financial Stability Facility (EFSF) to raise debt would be seriously damaged if France lost its credit rating. The bail-out fund - designed as Europe's €1trillion "big bazooka" - has already struggled in the bond markets while leaders deliberate over the funds structure. How many times do we have to say it. We will not print money. Every German knows the history of the Weimar Republic. A better solution is an expanded EFSF combined with austerity. The markets need to give us time to adjust our constitutional constraints to allow for a further commitment to the facility.
Subscribe to:
Post Comments (Atom)
4 comments:
Look at Egypt, Syria, London, Greece. The riots are only the beginning.
Just wait till the brunt of the real economic crisis hits us with its full force - just wait till the futility of the money printing and stimulus is realized - and the entire financial system collapses.
These minor skirmishes are going to cascade into full blown anarchy. No jobs - no food - no hope. The desperate will turn on venal governments that offer no solutions - and just as in Germany in the 30s' - demagogues will emerge with platforms and 'solutions' that appeal to the basest instincts of man - and these fascists will be welcomed with open arms - and hard fought freedoms happily thrown aside in exchange for the hope of structure, for a bowl of cold gruel, anything that offers a glimpse of something better than the cold cement of a winter sidewalk.
"The Bundesbank sharply lowered Germany's growth forecast for next year to
0.5pc" --- hang on a minute! That is a sight better than a country without much industry and only managing to stave off a recession by yet more quantative easing.
0,5 per cent of quite a big figure, and it is an even bigger figure than Britain could manage with its industries, however big they might be.
Well, it's better than nothing, right? That and the inflation isn't out of control either. Thankfully!!
Oh, and the markets will go up tomorrow when they realize that the figure wasn't -5% because they found their reading glasses and could focus on the screen.
Well done on entirely missing the point. Oh and of course finding another excuse to be rude about Britain. Your precious Germany is in deep trouble. Giving dodgy loans to your own consumers to buy your own products is just as bad as bundling up aaa rated financial instruments. of course you don't understand that yet, but I would say definitely within two years you will see what it is, probably much sooner.
Our two faced lying politicians have landed us in this shite. Nobody is blaming the EU for our problems - it's the enforced membership of the corrupt and unaccountable EU that is causing us problems - not the EU itself. We could find a whole lot of useful things to do with the friggin £45 million a day we hand over. And some imbecile in this fascist institution had the effrontery to tell us we were free loading the other day.
Yeah - like the people here have a choice - we'd be out quicker than you can say F U Cameron. I wish.
Post a Comment