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TGregg
Moderator*
Registered: Jan 2002
Posts: 7085 |
10-07-11 12:54 PM
BOE Loses Faith in Europe, Announces Stimulus
Bank of England Governor Mervyn King has lost faith in European governments’ ability to resolve the region’s debt crisis.
The central bank yesterday announced its biggest stimulus since the depths of the recession, citing “vulnerabilities” related to the euro-area turmoil. King said the move, the first loosening of U.K. monetary policy since 2009, was a response to what may be the worst financial crisis ever.
“It’s pretty much a vote of no confidence in European officials,” said Richard Barwell, an economist at Royal Bank of Scotland Group Plc and a former Bank of England official. “Either the virus is already in the U.K. so they had to respond, or they don’t believe the problem will be sorted out. I lean toward the second because of how much they’ve done.”
Read the rest at . . .
http://www.bloomberg.com/news/2011-...n-s-virus-.html
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TGregg
Moderator*
Registered: Jan 2002
Posts: 7085 |
10-13-11 02:58 PM
How can anyone (with fundamental economic knowledge, of course) read this and not bust out in gales of laughter?
After months of being "behind the curve," European policymakers are "finally aware" of the acute nature of the crisis, says Martin Wolf, chief economics commentator at The Financial Times. "They are coming under enormous pressure...to do something big."
Generally speaking, traders seem to believe European policymakers have gotten the message from German Chancellor Angela Merkel and French President Nicolas Sarkozy, who last week pledged "to deliver a response that is sustainable and comprehensive" by the G20 meeting in early November.
This "could conceivably be the end of the beginning" of the European crisis, Wolf says, borrowing from Winston Churchill.
http://finance.yahoo.com/blogs/dail...-190147088.html
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Ed Breen
Registered: Jan 2010
Posts: 484 |
10-18-11 02:38 PM
We are reaching the point where there has to be admission that the money is lost and is not going to be repaid under any plan. The issue has shifted to who is going to take the hit and how the hit (writedown) is going to be structured to control collateral damage.
The candidates are the Banks, the EU taxpayers with a concentration in the larger weathier Northern EU members (France, Ger), the IMF with participation from wealthy BRICs. Or stated differently, do we stick the loss with the banks that loaned the money because we asked them to, do we absorb the loss to the taxpayers, including those that have little to do with Greece, or can we get the whole world to share the hit.
The news in the past few weeks has been about trial baloons for each of these general strategies.
The meeting starting this week will be about how to take the hit within in EU because the banks can't afford the hit and the ROW will not join in. Ger banks sold a lot of their Greek debt months ago and are better positioned to take the hit with some Gov. support. So, Ger does not want to bail out everyone elses banks. This meeting is going to be about trying to get Germany to subsidize the whole EU banking system far outside its national liability. They will of course try to disguise this in complex garbage of details but if you look through its all about who takes the it.
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TGregg
Moderator*
Registered: Jan 2002
Posts: 7085 |
10-19-11 07:00 PM
Sarkozy says euro zone talks stuck, flies to Germany
PARIS/FRANKFURT (Reuters) - Plans to tackle the euro zone debt crisis have stalled with Paris and Berlin at odds over how to increase the firepower of the region's bailout fund, French President Nicolas Sarkozy said on Wednesday.
Sarkozy told French parliamentarians the dispute was holding up negotiations. He then flew to Frankfurt to talk with German Chancellor Angela Merkel in an attempt to break the deadlock ahead of a make-or-break European leaders' summit on Sunday.
http://finance.yahoo.com/news/Sarko...6&asset=&ccode=
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