Some one has to start it, Americas default.

or in Icelands case incompetance
they had a process where they would give the outgoing prime minister the job of head of their central bank, how dumb can you be....
I think they have changed that process now that the world has laughed at them

 

What they are trying to do it make the bomb go off befoe the bomb is too big
What the German polititians have done is just pass it to the next generation

 

We need to watch those Germans, They always wanted Europe for them selves but didnt get it by war-ing n stuff so now they are trying to buy it.

This is how Hitler got in, sneeked in through the back door.

If they first try to take Poland then we know for sure.

 

If Slovakia , out of principle wishes to discipline Greece , they will mortally wound Spain. Spain has responsible public debt ratios and some of the best banking regulation in the world. Spain got hit by the property, construction industry bubble bursting and are now in a liquidity crisis. 25 percent unemployment. The situation is critical, no time for principled stands, time for action.

 

Just reading an interesting article in the paper
Egypt had been left with a 80% debt to gdp ratio ( they are trying to be European but didnt quite qualify LOL) by Mubarak BUT as he wasnt elected so under international law those odious loans belong to him as he didnt represent the public.


Will be interesting to see if the new government washes it hands of that one....
does that mean another bailout for european banks??
followed by

Libya
Algeria
Yemen
joining the queue

 

You only get property / contruction bubble from irresponsible government and banking sector
Spain is another victim of join the EU and we will shower you in cash ..and you will lose control of your economy

Just like Ireland

Get into bed with socialist zealots and..... the next generation will pay for most of their working life

 

Spain couldn't control interest rates...the typical way you discipline exhuberant markets is by making money more expensive.

At present Spain cant print money to restore liquidity. These European issues must be solved to prevent future problems.

 

Thats a point who let Greece in anyway, didnt they ask questions,-- at least like how much money have you got.

They got rid of the debt off the books to make them look good by buying derrivatives of Goldman Sachs.

You gotta love those american --if you wanna do a bit of ducking and diving youlle find an American banker to help you as long as there is a buck in it.

Greece is the end anyway, Europe does not extend into the middle east,--at the moment.

Knock knock --whos that--Turkey--- we want to join the money club,--no fck off,--

Knock knock---- whos there---Saudi Arabia,----- errrrrr

5 years from now.

Knock knock --whos that --America !!!!!!!!!

 

agreed
you took the words out of my mouth and you dont think the new EU club members have not been watching all this for 10+ years
They tend to not have the old time retiree aged polititans who have had a cushy number for years in charge hence the refreshing attitude.
Ask a young person in Italy France or Germany what is happening to them thay all say the ******** (polititians)are doing nothing just passing the buck till they die off and they know full well who will be saddled with the bill

Just look at the average age of an Italian polititian about 70, not sure how it is in Spain

 

Good one!

 

Nepotism, "family" political parties, dinosaurs...that stuff exists everywhere in the world.
Europe is a very complex beast. I say rather than criticize and punish, its far more productive to sit around the table and hammer out policies which will make the system robust and function better in future.

Europe is not going to go away. The Euro is so successful that it will not be abandoned.

If the present financial constipation is allowed to harden the whole world will suffer.

 

Agree 100%- all of those on which everyone is laying blame were present during the recent boom. Were they celebrated then?

This is the real problem.
How did we get here?

I find it too easy to raise a hue and cry over "corrupt" banks and politicians.
Each of us are active participants in the economies which exist in our respective communities. The long evolution of these economies is formed by our behavior.
The current liquidity crisis is the result of changes as individuals and broad markets change their behavior. Bank lending practices and their accompanying vulnerability is one part of this evolution. As clear as the vulnerabilities were in the banking system, they are based on practices which occur in response to market conditions. They do not form them:

http://www.hkimr.org/cms/upload/seminar_app/sem_paper_0_91_hofmann-paper141102.pdf

Of note on trying to absorb the systemic shock of the bust:

"SPANISH banks have been doing their best to shield themselves from the bursting of the country’s property bubble. By buying properties before the loans on them go bad, lenders can mask their worst bets. Restructuring loans has the same effect. Help is now at hand from an unlikely source: the normally sober Bank of Spain. In July the central bank circulated guidance that relaxed provisioning rules on risky mortgages."

"The new accounting guidelines will help Spanish lenders smooth out the effects of the property bust over time."
http://www.economist.com/node/14133692

There was ample warning and knowledge of the risks:

"NEVER before have real house prices risen so fast, for so long, in so many countries. Property markets have been frothing from America, Britain and Australia to France, Spain and China. Rising property prices helped to prop up the world economy after the stockmarket bubble burst in 2000. What if the housing boom now turns to bust?"

"According to estimates by The Economist, the total value of residential property in developed economies rose by more than $30 trillion over the past five years, to over $70 trillion, an increase equivalent to 100% of those countries' combined GDPs. Not only does this dwarf any previous house-price boom, it is larger than the global stockmarket bubble in the late 1990s (an increase over five years of 80% of GDP) or America's stockmarket bubble in the late 1920s (55% of GDP). In other words, it looks like the biggest bubble in history."
http://www.economist.com/node/4079027


It is difficult to curb enthusiasm.
NO ONE likes to have the keg sealed when the beer is flowing.

 

The paradox is that during economic contractions , the proper policy is financial stimulus. Debt

At present , The northern players in the Euro scenario , the paymasters, are digging in there heels and shouting AUSTERITY !!! Spain's 25 percent unemployment could easily turn into seriuos social unrest. Grand bargains need to be negotiated. Spain reforms is labour laws to make its products ,services competitive and in return its granted increased budget deficit approval plus sovereign debt guarantees..

 

Agree- The lack of correct Monetary policy kept AU in crisis far long longer than peers during the recovery from the Great Depression.

I look in some dismay though at blaming the functionaries for creating the crisis and being impotent as it takes its course.
We are experiencing a long stride in the economic cycle- it will take time to resolve itself.

Europe is robust- action to prevent unnecessary loss during the crisis is well advised.
Band aids are fine- they DO stop the bleeding...

 

Hang on a minute, if Spain gets in trouble from spending too much why do you think Spanish banks are in trouble, its not necessarily so.

Ireland was in trouble but it wasnt the banks it was the Irish government.

Sanatander is one of the biggest banks in the world and is the most profitable, it is Spanish and its stocks recently have been stable in not rallying.

Dont confuse a Government with a rotten bank.