they just decided to let HRE go under and not extend the gouvernemt guarantees. This means a very ugly start on monday in ESTX and Dax. Maybe this is the final washout we are waiting for.
according to Deutsche Bank HRE might need up to 100 Billion until end of 2009 and banks tried today to get more guarantees for HRE than the 26.5 Billion Euro German Bund has already offered. But German gouvernment decided not to risc more money. HRE is now trading at a 50% loss compared to Friday in Sunday Evening trading at Lan&Schwarz. Most surprisingly (to me) Dax could recover early losses and is now trading only -0.8% down compared to Friday. If market can recover during monday trading expect a very strong week. Always trade in the direction nobody expects but wait on a good sign. BERLIN (dpa-AFX) - Der Bund wird seine Bürgschaftszusagen für die in Schieflage geratene Hypo Real Estate nach Angaben von Unionsfraktionchef Volker Kauder nicht erhöhen. Damit würde es bei der Zusage des Bundes bleiben, mit 26,5 Milliarden Euro zu bürgen. ´Darüberhinaus ist vom Bund nichts zu erwarten´, sagte Kauder am Sonntag nach der Koalitionsrunde im Kanzleramt. Ohne näheren Hinweis sagte der Unionsfraktionschef ferner, die Privatbanken hätten ihren Beitrag zur Rettung des Immobilienfinanzierers zugesagt. Der ursprüngliche Bürgschaftsbetrag der Privaten Banken betrug 8,5 Milliarden Euro./rt/vr/vs/DP/js
Maybe we can "donate" this 10% in the form of subprime-backed bonds After all, God has an eternity. We only have our lifetime.
3 hours ago it traded 5600 but of course volume in Sunday trading at these brokers is thin. It was below 5500 earlier this afternoon.
Italy has so many political parties that no single party has ever been able to form a government alone, and there are rampant scandals and involvement with the Italian mafia. In the 1980s there were so many killings of judges etc that crime seemed unstoppable, and government corruption was wide spread. The "Mani pulite" (Clean Hands) investigations started in the 1990s. The public's opposition has been pronounced with pornstars elected into office etc. They have had nearly a new government per year... Their national debt is over 100% of GDP, and they have had huge difficulties with budget deficits for decades. Italian mafia is very heavily involved in human trafficking of prostitutes in Europe, and they have a very dominating role - along with Russians, ex-Yugoslavs. Most hookers from Nigeria enter via Italy and are then spread over Europe. Also - enormous scandals like Parmalat, and the distribution of rotten cheese that they reprocessed and sold around Europe... lousy business ethics. But they have some excellent designs - and the most beautiful cars, fashion and boats in the world. That shit is NOT normal for any country... Among other Europeans, the Italians are pretty easy to notice - and not always very well liked. I personally have Italian friends here, and like them - they are emotional, but diverse - and pizza is my favourite food. The Italians which are where I am in Brazil, are mostly invested in tourism - the bad, the good and the ugly. That's why I speak of how Italians are here, however they are the largest immigrant group of Brazil, and most are of course squeaky clean - as good as can be in Brazil. Brazil is one of the most corrupt countries in the world, and there is a joke within the finance environment going as - if all financial infrastructure broke down all over the world, the Brazilians would go on just like nothing happened - because it would truly be business as usual. They are infamously undependable and have their "jeitinho" way of going around any "obstacle", while fleeing from responsibility.
And fight 'rampant global inflation' I'd say inflation risks must still be considered 'pressing', especially with the EUR coming crashing down faster than a drunk hooker. An emergency 0.5% rate hike could help prevent the oh so scary 'imported inflation'. Now the ECB's feels haunted by the ghosts they called upon with all their BS tough talk as they have little flexibility to deal with the current implosion of the EUR zone banking world they were supposed to be immune to.