Word is that France may be next for a case of euro indigestion...
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IMO its only a matter of time before the whole lot goes the same way. How confident will the markets be that France and Germany can support the whole Eurozone? The French will be going on strike soon as they'll have to implement austerity measures to bail out the others, then Germany..
How confident will the markets be
And there in lies the problem, we are letting the markets run our economies, unfortunately all the markets are interested in is quick profits they aren't concerned with the long term financial sustainability.
they aren't concerned with the long term financial sustainability.
bollox.
Thats exactly what the markets are doing - pricing according to evidence that these economies are not sustainable in the long term. The bond yields move out precisely because of the risk of that unsustainability leading to a higher risk of default.
If Italy goes bust, or more bust than it is now, then it will be a much cheaper place to go mountain biking for UK residents.
I don't get why the Germans haven't just told everyone to eff off already. If I were a German voter I'd be getting pretty sick of paying for Southern Europes daily siestas and tapas
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I don't get why the Germans haven't just told everyone to eff off already.
Because the EU is as much a political project as an economic one, though there is talk of a smaller group of 'hard' euro countries with even greater integration the truth is that if the euro splits so does the EU political project.
Because the Germans are trapped by thier export lead economy.
They have to support the southerns so that the greek, italians etc can buy nice new mercs to use as taxis.
Also some might say that all this political s0dding about is part of a currency war. It's possibly a ploy by the Germans to devalue the euro and therefore make them more competative.
I don't get why the Germans haven't just told everyone to eff off already. If I were a German voter I'd be getting pretty sick of paying for Southern Europes daily siestas and tapas
[url= http://www.bbc.co.uk/news/15676704 ]Some thoughts on that here.[/url]
Thats exactly what the markets are doing - pricing according to evidence that these economies are not sustainable in the long term. The bond yields move out precisely because of the risk of that unsustainability leading to a higher risk of default.
Now that is bollox, the markets are taking as much profit as possible from the situation, the markets are deepening the crisis in order to maximise current profits, lack of regulation and political control has given financial control od economies away to the city wide boys.
"political control" is exactly what is making all this MUCH worse.
Markets have never been more uncertain due to one politian saying something for then another to say the opposite.
How can business invest in these extremely uncertain times.
markets are taking as much profit as possible
No-ones taking any profits while the yields are going out! It means investors are selling their bonds for less than they bought them for (or valued them at). Bond holders are taking losses. There will probably be some minor intermediary profit taking as the bond moves out but that's from one bond holder to the next, not the issuer taking a loss.
And the bonds are going out, because politains decided that a greek haircut of 50% is not a default... madness... so that meant CDSs havent paid out and in a nutshell that means you can't insure against loss on bonds except for selling them. Which is exactly whats happened to italian, spanish and french bond.
And just so you know... the market isn't us city wide boys.... its the whole wide world's collective thoughts, wants and needs....mine, stoners, yours and every person with a bank account, pension or insurance policy.
so that meant CDSs havent paid out
shhhhhhhh! I think for now we'll accept that as a good thing....who do you reckon is carrying all those CDSs? 😉
They should drop this false rate of the Euro to start getting things moving through out Europe.
Now that is bollox, the markets are taking as much profit as possible from the situation, the markets are deepening the crisis in order to maximise current profits, lack of regulation and political control has given financial control od economies away to the city wide boys.
this is bollox...
given full information so the markets could work properly would have mean't that the true value of these economies would have been apparent for a while and things would have adjusted accordingly.
Trouble is that there is so much bu11sh1t from politicians that the full facts weren't available.