Tag Archives: Germany

Mish/ Mike Shedlock – European Crisis Summit Score 0-18 With Another Coming up June 28; Is Merkel Misinterpreted? Will The FOMC Move Decisively? – 20 June 2012

 Steen Jakobsen, chief economist of Saxo Bank in Denmark, asks via email: “Is Merkel Misinterpreted? Will the FOMC Move Decisively?”

The misunderstood Chancellor.

The market clearly believes Ms. Merkel will, ultimately, not withstand the pressure – and she will end up collateralizing rising debt. I remain extremely skeptical. I even dusted off my school German to read Der Spiegel and Focus, two major German weeklies, which give you a very different perspective. Continue reading

Mish/ Mike Shedlock – Throwing Bones To Greece; A Victory For Europe ( Or A Victory For French And German Banks)? – 18 June 2012

Throwing Bones to Greece

In the wake of New Democracy eking out a victory over Syriza in the Greek elections, the nannycrats are willing to toss a few bones to Greece.

For example this headline on Bloomberg says Euro Chiefs Signal Greek Austerity Softening as Summit Looms. Continue reading

Mish/ Mike Shedlock – German Vote On ESM Fails; Still Not Ratified By Germany, Austria, Belgium, Estonia, Slovakia, Netherlands; Political Football Over Financial Transaction Tax – 14 June 2012

The Wall Street Journal reports European Economics Commissioner Olli Rehn expressed concern Monday that Germany, Austria, Belgium, Estonia, Slovakia, and the Netherlands were dragging their feet in ratifying the ESM.

In the meantime, the Journal reports Spain May Tap EFSF.

The article states “Power broker Germany has yet to complete the process but is expected to do so soon.” Continue reading

The Telegraph UK Headlines, 13th June 2012 – 14 June 2012

Debt crisis: Germany signals shift on €2.3 trillion redemption fund

The German government has begun opening the door to shared debts for the first time in a profound change of policy, agreeing to explore proposals for a €2.3 trillion (£1.9 trillion) stabilization fund in order to stop the eurozone’s crisis escalating out of control.

Spain could be cut to junk within three months

Spain could be downgraded to ‘junk’ within three months, rating agency Moody’s warned on Wednesday night, as it slashed the country’s credit rating by three notches. Continue reading

John Ward – Crash 2 : Berlin Reverses Its Millimetre Of Movement On Eurobonds – 6 June 2012

The Earth may be turning, but the economy is at Dead Stop

‘Germany has not moved one inch towards fiscal union of any kind’ writes Ambrose Evans-Pritchard in today’s Telegraph.

And I’m afraid he’s right. Merkel is a crafty minx, and no mistake: she appeared to have buckled yesterday, but now she’s upped and said “Oooo nein, you misunderstood me”. This isn’t playing well in either Washington (where Geithner is tearing his hair out by the roots) and back in Bankfurt, where – I’m told – even Draghi looked exasperated after taking a phone-call from the Ostikanzler yesterday late afternoon. Continue reading

Mish/ Mike Shedlock – German Finance Minister Pressures Spain To Accept Bailout;Germany Says €50 Billion To €90 Billion Needed; More Doublespeak – 3 June 2012

Germany and Spain are both digging in their heels. Courtesy of el Economista and Google Translate, please consider Germany pressed for Spain to resort to bailout fund.

German Finance Minister, Wolfgang Schäuble, have pressured the Spanish owner of Economy, Luis de Guindos, for Spain to resort to European rescue fund, fearing that fails to stay afloat on its own. Continue reading

Mish/ Mike Shedlock – Spain’s Prime Minister Begs For European Fiscal Nannyzone And Banking Union; Obama Seeks End To “Crisis Cloud”; Merkel Immediately Rejects Proposal; Cloud? What Cloud? – 2 June 2012

On Saturday, Spain’s prime minister Mariano Rajoy Asked For a Eurozone Fiscal Authority, in effect the “Fiscal Nannyzone” that I have spoken about on numerous occasions.

Spain on Saturday proposed the set up a new fiscal authority in the euro zone which would control and harmonize national budgets and manage the European debts. Continue reading

Mish/ Mike Shedlock – Spain’s Plans To Recapitalize Bankia Will Put Germany, ECB At Risk; When Does The Ponzi Scheme Collapse? – 28 May 2012

Inquiring minds are interested in the recapitalization plans for the Bankia. Please consider this chain of posts.

ABC News reports Spain’s Bankia set for massive bailout.

Spain’s fourth-biggest bank Bankia says it is certain of securing the 19 billion euros ($24 billion) in state aid it is seeking in the largest bank bailout in the country’s history. Continue reading

Mish/ Mike Shedlock – “ECB Will Be Insolvent And Costs May Exceed 1 Trillion Euros” Says IIF Director; If The ECB Prints, Would Germany Exit The Euro? – 26 May 2012

According to IIF director Charles Dallara in a Bloomberg interview, “ECB will be insolvent if Greece were to exit the euro. Europe would have to first and foremost recapitalize its central bank.”

Excuse me for asking but how would they attempt to do that? Print Euros?

Please consider Dallara Says Greek Euro Exit May Exceed 1 Trillion Euros

The cost of Greece exiting the euro would be unmanageable and probably exceed the 1 trillion euros ($1.25 trillion) previously estimated by the Institute of International Finance, the group’s managing director said. Continue reading

John Ward – Greece Breaking : Athens Caretaker Government Forced To Raid Recapitalisation Budget To Keep Going – 25 May 2012

The Slog has learned that Greece’s Accounting Office produced an internal briefing paper this week warning that tax revenues are likely to miss hoped-for targets by some €1.35 billion. While some of what follows has been reported in the newspaper Kathimerini, the real rate of decline in tax receipts has been understated. Continue reading