The Watering Hole: Wednesday, June 20, 2012: Does it really Matter?

Ok, so for the next few months, if you’re in a “swing” State, you’ll be inundated with SuperPAC commercials designed to get you to vote against your own best interests. We will also be systematically bombarded with messages from the Mainstream Media designed to influence our thinking.

IT’S ALL A SHOW. IT REALLY DOESN’T MATTER.

If the Powers That Be really want Obama out, all they have to do is raise gas prices to about $5.00/gallon. Instead, gas prices are going down, heading into the summer vacation season. That’s not to say they won’t go up between now and the election – but they are an accurate predictor of where our economy will head. So, pay attention to the pump, not the talking heads.

Ok, that’s my $0.0199 cents. And you?

OPEN THREAD
JUST REMEMBER
EVERYTHING I SAID
DOESN’T REALLY MATTER

 

By Jove!

Reuters:

 

(Reuters) – The leaders of France and Germany scrambled on Tuesday to limit damage after Prime Minister George Papandreou decided to let Greeks vote on a bailout package — a move that stunned markets and threw Greece’s euro zone membership into question.

European politicians complained Athens was trying to wriggle out of the 130 billion-euro rescue deal agreed at a summit only last week, concerned not so much about the fate of Greece as the possibly dire consequences for the entire currency union of the referendum. (read all)

BIG OUCH!!!

Check for Market Updates here.

The Watering Hole: Tuesday, September 13 – Republican Election Machine

The Debate is over. Nothing new, except for Ron Paul being even more callous than I thought possible. Isn’t he a doctor by profession? Wasn’t there a thing called the hypocratic oath? (ht: peteIngh)

This is our Open Thread. Give us your take on yesterday’s, today’s or tomorrow’s news.

All cartoons are posted with the artists’ express permission to TPZoo.
Matt Davies
CTNews

The Watering Hole: Friday July 15, 2011 – Srsly?

The already shaky European economists are staring in disbelief, but fascinated, too, at the slowly unfolding trainwreck in Washington. Let us see what they say:

The Economist

“WE HAVE a system of government in which everybody has to give a little bit.” So said Barack Obama at the start of this week. But parse that sentence. Does the president mean that America already has a system in which everybody has to give a little bit? Or does he mean only that it ought to have such a system? It is not too much to say that the country’s economic well-being hangs on the answer. (read more)

More here and here and here

The Guardian

Move over Nero: legislators on both sides of the Atlantic seem as if they can hardly summon up the energy to fiddle while their economies burn. In Europe, a chronic lack of co-ordinated action early in the financial crisis means the very survival of the euro is now in serious doubt. In the US, the crisis is potentially more serious: if Republicans and Democrats cannot agree on a deficit reduction plan by the 2 August deadline for raising the debt ceiling, the world’s largest economy will be in default.(read more)

The Independent

Washington’s rancorous deficit-reduction talks resumed yesterday amid dire warnings from Wall Street and open rifts in the Republican leadership – but with no sign of a deal to raise the government debt ceiling and avert an unprecedented and potentially disastrous default by the United States government.(read more)

and

A dangerous game is being played by politicians in America. Republican negotiators are refusing to raise the cap set by Congress on the amount of debt the government in Washington can legally borrow. The United States hit its $14.3 trillion “debt ceiling” in May and the Obama administration has been juggling the finances since to continue to pay the daily bills. But on 2 August it will run out of room to do that. America will have to default on some of its due payments.(read more)

Meanwhile we Europeans have our own problems. So has Rupert Murdoch 😀

This is our Open Thread, What do you think and what else is on today?

The Watering Hole: May 11, Europhoria is over

add to del.icio.us : Add to Blinkslist : add to furl : add to ma.gnolia : Stumble It! : add to simpy : seed the vine : : : TailRank : post to facebook

The Europhoria in the markets on the 1 trillion safety net for the Euro is already over. Stock Markets from Japan to Europe close in the red and shed some of yesterday’s gains. I am only really surprised that they fell for it in the first place. As a real optimist, who thinks everything will work out just fine in the end, I panicked after the news of the Euro deal broke. WTF were they doing with our money? But, as always, there are people out there in the web, who are so much better, when it comes to putting what matters into words:

Eurointelligence:

The euphoria is evaporating. Market commentators have taken a closer second look at the package, and they start not to like it. In our view the sentiment was best expressed by  what Kevin Gaynor chief markets economist of RBS who called the EU’s strategy “Bailouts rather than integration”. They are not solving the problem, they are throwing money at it. Another appropriate comment came from Marek Belke, the EU head at the IMF, who compared the rescue package to a dose of morphine with the purpose to stabilise the patient.(read more)

And on the futility of it all:

Credit Writedowns says wait for May 19th!

Nouriel Roubini warns in an interview with Der Spiegel, that there is more to come:

Today the markets are very worried about Greece, but that’s only the tip of the iceberg. Increasingly, bond market vigilantes have woken up in places like the UK and Ireland. Even the US and Japan will have problems because of their huge budget deficits. Maybe not this year, but they will eventually. In the US, states like California, Nevada, Arizona, New York and Florida have immense fiscal problems. The growing budget deficits and the huge government debts are really what worry me most. (read whole interview)

And looking away from “irresponsible” spendthrift Europe into your own back yard:

American conservatives, particularly the fiscal variety, tend to hold up the European Union as a model of irresponsible, big-spending economic policy. But consider this: According to E.U. rules, member countries cannot maintain budget deficits above 3 percent of gross domestic product; nor can their total debt rise above 60 percent of GDP. As Veronique de Rugy points out in this issue, the U.S. budget deficit in 2009 was three times the E.U.’s limit, and total debt will zoom past the 60 percent threshold sometime this year. Washington makes Paris look frugal. (read more)

You can find more useful links on this and other subjects at nakedcapitalism, which has turned into one of my favourite sites. Outside TheZoo, that is.

Don’t judge this book by its cover, this is still our open thread. Don’t hold back!

Across The Pond: Elections, Euros, Emotions

This is going to be a long weekend for Angela Merkel. First of all she and her fellow European leaders had to get the Eurozone under some kind of control until Asian stock markets open late tonight, our time.Their solution: Add another € 70 bn to defend the Euro, and the Germans are already supposed to sign the fattest check in history:

EU leaders have agreed a financial defence plan in an attempt to protect the eurozone countries from speculative attacks in the wake of the Greek debt crisis.

The German chancellor, Angela Merkel, and the French president, Nicolas Sarkozy, said today that an “intervention unit” designed to preserve financial stability in the 16 eurozone countries would be in place by Monday when the markets reopen. (read more)

The Euro-Crisis can be followed at nakedcapitalism, they have a couple of interesting posts on that.

Secondly, she is facing the voters’ wrath in North Rine Westphalia the biggest of Germany’s states, where state elections will not be going good for her, that much is certain.

The UK has been so immersed in political fever that another highly significant election has gone almost unnoticed. When Germans go to the polls in state elections today, at stake will be not only the future of Angela Merkel’s ruling coalition in Berlin, but also the direction of Europe’s biggest economy. (read more)

THE voters in Düsseldorf’s central square were waiting patiently in the rain for Angela Merkel to appear last Friday when the loudspeakers suddenly announced that she was too busy dealing with Greece’s financial crisis to join them.

Their spirits already dampened, many were clearly in a mood to punish the chancellor for her contribution of more than £19 billion to the Greek bailout. They had gathered to hear Merkel make her pitch for the Christian Democratic Union (CDU) in today’s state election in North Rhine Westphalia, Germany’s industrial powerhouse with a population of 18m. (read more)

A detailed article on the state election can be found at the International section of Der Spiegel.

But it’s not a good day for Gordon Brown either, he has lost his elections already and will lose his post, because even if the Liberal democrats should opt for supporting Labour, I very much doubt they will do it if  Brown’s at the helm.

And opt for Labour they still could, because the Tories are adamant when it comes to electoral reform. Big NO.

Nick Clegg was urged by senior figures in his party last night to back a “traffic light coalition” with Labour, Green and smaller parties amid signs that David Cameron’s proposed deal to the Liberal Democrats has triggered an angry backlash among Tory and Lib Dem MPs.

The Lib Dem and Conservative leaders met last night for “constructive” face-to-face talks to try to reach a deal before markets open tomorrow morning. Earier, after a crucial meeting with his party in Westminster to gauge reaction to a Lib-Con coalition, Mr Clegg addressed a 1,000-strong crowd protesting in favour of electoral reform to insist that proportional representation was still key to the talks. (read more)

I am not really surprised that the “senior bankers” are already putting pressure on the parties:

FEARS of a market slump mounted this weekend after British politicians failed to form a government and senior bankers warned that the eurozone crisis might cause bank lending to seize up. (read more)

This is blatant blackmail. The banks don’t want electoral reform, they like the status quo just fine. Electoral reform would only serve to give the great unwashed more say, and we can’t have that, can we?

And finally, here’s the New Mr Switzerland, what an emotional moment, which I didn’t watch and will never regret not having watched.

Have a good Sunday and especially a Happy Mother’s Day to all the moms out there. I’ll head back now to my boys and spend a little quality time with my family.

add to del.icio.us : Add to Blinkslist : add to furl : add to ma.gnolia : Stumble It! : add to simpy : seed the vine : : : TailRank : post to facebook

A Greek Tragedy, revisited.

Greece - Ruins

So taxpayers are asked to foot the bill again. European governments have decided on a bailout for Greece, so they can stay in the EMU (European Monetary Union), where they should not have been accepted in the first place.

It was Goldman Sachs, who else, who helped Greece to cook the books in order to make the 3% of GDP debt-threshold the EMU prerequisited for entering the EUROzone. Fully aware of their doings they, at the end of last year started to lay their bets on a default of Greek debts. This sent Greek bonds yields spiralling out of control, the latest was a 18% yield, a percentage Greece cannot afford to pay to borrow money to run their country. And all banks were busily selling Greek bonds to their customers, who in turn very much appreciated a (then) 5% yield to the almost nothing in interest you get on your money from your local bank.

Now what? Will the bonds default and leave the investors out in the cold? Will there be write-offs, so Greece can draw a little breath and get their debt situation sorted?

Fat chance. Deutsche Bank boss Ackermann has already issued one of his famous warnings of impending financial apocalypse if Greece wasn’t bailed out and should default on their debt. So, this knight in shining armour is saving the Eurozone’s economy from armageddon? Or is he helping the investors who bought the bonds from Deutsche Bank and by this saving the Banks reputation, their business and his bonus?

Not only Goldman sucks.

And: Portugal is next.