pachapapa Posted December 4, 2011 Share Posted December 4, 2011 Italian pensioners will face more difficult terms in the future.In a press conference to announce the measures to be adopted the Welfare Minister dealing with pensions was so moved by the gravity of the measures that she was reduced to tears. The Italian government will await, after announcing the austerity package and accepting the "mea culpa" of bringing down the finances of the eurozone, the reaction of the population and markets on monday.http://www.youtube.com/watch?v=aTq0nJWrWcA&feature=player_embedded#! Link to comment Share on other sites More sharing options...
pachapapa Posted December 5, 2011 Share Posted December 5, 2011 An interesting recent diagram from Credit Suisse; note the continued rise of the EM FX Reserves during the crunch period evolution.[:(]http://av.r.ftdata.co.uk/files/2011/12/CSChart-e1323046428726.jpg Link to comment Share on other sites More sharing options...
Frederick Posted December 5, 2011 Share Posted December 5, 2011 Looks like any Italian protest march is going to be a slow one ....if Zimmer frame users are at the front Link to comment Share on other sites More sharing options...
Alan Zoff Posted December 5, 2011 Share Posted December 5, 2011 The final paragraph of Robert Peston's piece today (on the dodgy outlook for the UK should the Eurozone recover) reminds me of the inevitable disclaimer included by stockbrokers whenever they make dramatic predictions:"Although, for the avoidance of doubt, that does not on its own prove that the chancellor's decision to opt for more austerity is right or wrong." Link to comment Share on other sites More sharing options...
Quillan Posted December 5, 2011 Share Posted December 5, 2011 Funny really, I have been reading a BBC book about the 20th century and am currently in 1920's. Reading about the problems, both social and economical, it could be now. It seems nothing changes except back then we didn't have the Euro to blame. Link to comment Share on other sites More sharing options...
pachapapa Posted December 5, 2011 Share Posted December 5, 2011 There are probably similarities but the euro gives an extra dimension to the equation with 17 sovereign nations with disparate economies. Most were easily tempted into getting into serious debt presuming that rolling over their maturing obligations would always be available without serious variations in yields. But there was one singular exception to this weakness for the easy life. Germany! The germans continued to do what germans are good at, adding value to their economic activities. Whilst the other 16 inexorably got themselves deeper and deeper in the mire. Cunning baskets these huns leading the rest along like rabbits. Nice little number recently when the world looked on with glee at the news that the german central bank had failed to cover a bond sale; the pundits rejoiced that the germans were finally in the same boat as the greeks and would have problems with their deficit. Not true the yield was intentionally set low, under 2%, nevertheless some 60% was covered. This left some 40% for the german repo market, allowing an adequate if not plentiful supply of credit to german commerce, finance and industry at reasonable rates of interest. Although widely publicised for geo-political reasons on that occasion, there have been other times when the bund offering has not been covered.Today monday, the yield was 0.001%, fast approaching negative territory where we will have to buy bonds at a discount for the privilege of the germans looking after our quality assets.She, who pays the piper, calls the tune.http://av.r.ftdata.co.uk/files/2011/12/bubill-auction.jpg Link to comment Share on other sites More sharing options...
mint Posted December 5, 2011 Share Posted December 5, 2011 "Must do better"......sounds like one of my school reports.http://www.telegraph.co.uk/finance/financialcrisis/8937113/Debt-crisis-all-17-eurozone-countries-face-losing-AAA-credit-status.html Link to comment Share on other sites More sharing options...
pachapapa Posted December 6, 2011 Share Posted December 6, 2011 Further to the thoughts on the eurozone GC comparisons viz germany to greece, etc; an article in Bloomberg this morning informs from an "anonymous" source that the 2010 Basel III is getting a rethink on the defining of risk-free collateral with particular consideration of sovereign government bonds. An earlier post on this thread compared unfavourably a recent placing by Tescos and a eurozone government.http://www.businessweek.com/news/2011-12-06/basel-rules-face-change-with-no-risk-sovereign-debt-major-focus.html Link to comment Share on other sites More sharing options...
Quillan Posted December 6, 2011 Share Posted December 6, 2011 Yes but the "The Basel Committee on Banking Supervision" is only an advisory body, it does not set the rules. All the members have to agree and not all, by far, of them come from within the Euro zone. Link to comment Share on other sites More sharing options...
Devon Posted December 9, 2011 Author Share Posted December 9, 2011 Well today's Euro summit has been a shocker. I don't think today was about a Camaron/UK veto of Europe: it was a European veto of Camaron/UK. France and Germany simply set out conditions they knew would be unacceptable to Camaron and got shot of him/UK from the European club.Europe has had enough of Britain not wanting to be a player in the creation of a European state but trying to influence and block its formation. Also, the rest of Europe are sick of the City and the massive frauds it commits on the world. Parts of the City are indeed world class and worthwhile (insurance, money exchange etc) but a huge part of it simply uses the UK as a money laundering vehicle for its over leveraged and criminally liable ponzi schemes.Ultimately, none of this matters if the euro crashes and takes the West's corrupt, bankrupt financial system with it. What now for Britain and what now for the Euro? Interesting times. Link to comment Share on other sites More sharing options...
woolybanana Posted December 9, 2011 Share Posted December 9, 2011 Nah, it is all a ploy by France to get the world's financial centre to Paris. Link to comment Share on other sites More sharing options...
Alan Zoff Posted December 9, 2011 Share Posted December 9, 2011 Frankfurt property could be a good investment. Link to comment Share on other sites More sharing options...
Polremy Posted December 9, 2011 Share Posted December 9, 2011 "Frankfurter sandwiches, frankfurter sandwiches, all night long!!"Someone please tell me why this keeps going through my head. Link to comment Share on other sites More sharing options...
pachapapa Posted December 9, 2011 Share Posted December 9, 2011 [quote user="Devon"]Well today's Euro summit has been a shocker. I don't think today was about a Camaron/UK veto of Europe: it was a European veto of Camaron/UK. France and Germany simply set out conditions they knew would be unacceptable to Camaron and got shot of him/UK from the European club.Europe has had enough of Britain not wanting to be a player in the creation of a European state but trying to influence and block its formation. Also, the rest of Europe are sick of the City and the massive frauds it commits on the world. Parts of the City are indeed world class and worthwhile (insurance, money exchange etc) but a huge part of it simply uses the UK as a money laundering vehicle for its over leveraged and criminally liable ponzi schemes.Ultimately, none of this matters if the euro crashes and takes the West's corrupt, bankrupt financial system with it. What now for Britain and what now for the Euro? Interesting times. [/quote]Cameroon a puppet on a string but not the sandie shaw version. Link to comment Share on other sites More sharing options...
Bugsy Posted December 10, 2011 Share Posted December 10, 2011 [quote user="sweet 17"]"Must do better"......sounds like one of my school reports.http://www.telegraph.co.uk/finance/financialcrisis/8937113/Debt-crisis-all-17-eurozone-countries-face-losing-AAA-credit-status.html[/quote]That's rich coming from organisations that have profited massively from this crisis. I really had no idea that you could actually pay the credit-rating companies to improve your own rating. That, in any other walk of life, would be deemed criminal and result in long jail sentences.. Link to comment Share on other sites More sharing options...
John Brown Posted December 10, 2011 Share Posted December 10, 2011 Link to comment Share on other sites More sharing options...
pachapapa Posted December 11, 2011 Share Posted December 11, 2011 Once upon a time the Chinese Cabinet were curious as to sub-prime mortgages and wondered whether the chinese should participate.Chinese government financial advisers arranged an explanation.A large mirror was placed in front of the Premier and then a card bearing " sub-prime mortgages" was held behind his back.He was asked how many he could see.The Premier replied ONE.Then a second large mirror was placed behind his back and the question repeated.Moral the chinese desisted from participation.Next week there may be a re-run of the plot.[:)] Link to comment Share on other sites More sharing options...
pachapapa Posted December 12, 2011 Share Posted December 12, 2011 After days of tenterhooks...will I, wont I...change before or after the Merkozic Summons.Finally deposited 4 checks in USD at the green oseudo insolvent combo on saturday, enough to cover bills till end of february.Transaction will hit the Poitou-Charente counting house at saintes on tuesday.....hoping for FX under 1.32.[:)] Link to comment Share on other sites More sharing options...
BIG MAC Posted December 12, 2011 Share Posted December 12, 2011 I must confess 'matters international finance' are all Greek to me (intended pun) however...in my very simplistic mind. The 'problems' were all about bad debt particualrly mortgage default and falling property values..Property values aren't dropping through the floor in the UK merely retracting to a sensible level. Britain inherited a lot of debt driven by the outgoing Governments over commitment to the public sector in support of jobs and reciprocal taxation. The eurozone seems to be disappearing up its own bottom (Not sure why other that their debts seem to be even hairier than the UKs) Who the h3ll have they borrowed the money from? is it a Country? (Not America it has its own poison debts) ...The British taxpayer owns a large part of Banks which by virtue of not going down the toilet...must be making profits....What on earth is going on?? and will my pound ever get back to buying me two euros? Link to comment Share on other sites More sharing options...
Oboulez Posted December 12, 2011 Share Posted December 12, 2011 will my pound ever get back to buying me two euros - I have a large amount waiting ready for that moment when I can press the 'transfer' button. Link to comment Share on other sites More sharing options...
mint Posted December 12, 2011 Share Posted December 12, 2011 Well, guys, 1.179 a few seconds ago!Might be a long wait if it's 2 euros you're aiming for..... Link to comment Share on other sites More sharing options...
pachapapa Posted December 12, 2011 Share Posted December 12, 2011 It's all about who has got the balls.[IMG]http://cdn4.spiegel.de/images/image-287703-galleryV9-bcfp.jpg[/IMG] Link to comment Share on other sites More sharing options...
breizh Posted December 12, 2011 Share Posted December 12, 2011 [quote user="BIG MAC"]The eurozone seems to be disappearing up its own bottom (Not sure why other that their debts seem to be even hairier than the UKs) Merkel made probably the bigget economic mistake of the 21st century, when she forced private lenders to take a reduction on Greek debt. Guess what! Now no private lender will lend to any country in EZ, for fear of not getting their money back (that's the simple version). And why hidden away in last weeks EU deal was the guarantee that private lenders will not suffer anymore. Just the taxpayers!Who the h3ll have they borrowed the money from? is it a Country? (Not America it has its own poison debts) ...Money markets. Pension funds to you. Mainly US/UK/CAN/AUS, then much, much smaller, sovereign wealth funds. Note the statement often quoted in the media "The US's biggest overseas creditor is China". Over 75% of the debt is owned by it's own citizens. In EZ the debt tends to be to be banks in the EZ, hence why pretty well all of them are insolvent (simple version)The British taxpayer owns a large part of Banks which by virtue of not going down the toilet...must be making profits....Making big trading profits, but after write-offs, nope.What on earth is going on?? and will my pound ever get back to buying me two euros?Nope.[/quote] Link to comment Share on other sites More sharing options...
just john Posted December 12, 2011 Share Posted December 12, 2011 Emerging Sovereign predict ''2012 is a race to the bottom for euro, with a lehmanesque moment til probable par with the dollar . . .'' Link to comment Share on other sites More sharing options...
BIG MAC Posted December 12, 2011 Share Posted December 12, 2011 Thanks Breizh for your simplified version, which still seems complex to me...but lets see if I can summarise your summary...Jerries rule the Euro roost and a bad Jerry decision has led to a lack of confidence from 'Private lenders' and among these private lenders are UK Pension funds ...looking for a return when things get better etcThe UK has financial problems it is resolving by lending money it hasn't got into a currency in melt down.....The US is sitting pretty despite being the prime contributor to the problems ..riding a UKesque property boom which did go phuttt...The US is resolving its problems by lending money which its printing against bonds into a currency in melt downThe currency in melt down which I think should be worth less in comparison to my £ isn't because my £ has been lent carelessly by Bankers into the currency in meltdown and my taxes go up to bail out the Bankers who are causing the problem..I continue to pay my taxes and bills until the redundancy money runs out ...The Banks continue to cork up (completely outwith my control..... albeit I am an unconsulted investor / stakeholder)Ahhh I understand now....where is the gas oven.... Link to comment Share on other sites More sharing options...
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