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http://www.telegraph.co.uk/finance/e...ndholders.html
Ah...........like Gererd Ford/New York in the 70's all over again.
mike
Ah...........like Gererd Ford/New York in the 70's all over again.
mike
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Re: Germany tells the PIIGS (& those whom bank rolled them) to DROP DEAD!
for once, German proposal seems reasonable. Let bondholders, that´s to say creditors share responsablity for lending money to states that gave it to their elites. That´s the same as saying for the banks, which create such debt in the first place, and then pass the risk on to worldwide retirees to be more careful in the future.
And countries have an opportunity to hold down payments that are choking them.
Of cours, the devil is in the details. -
Re: Germany tells the PIIGS (& those whom bank rolled them) to DROP DEAD!
I just love the quote "The debt crisis in the eurozone periphery has not been sorted out. These countries need markets to keep buying the bonds, but investors are going to stay away if you open the door to private sector pain,"
Really?? Since when do countries need markets to buy their debt. Maybe he should go study the flow of funds from the Fed and back again just to understand how any country with a fiat currency and a decent amount of currency demand can effectively print money by ensuring that an auction never comes up short via primary and secondary dealer recirculation.
Besides, bond-holders should always understand that there is risk for a reason and with risk comes potential losses.Comment
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Re: Germany tells the PIIGS (& those whom bank rolled them) to DROP DEAD!
No need for anyone in Europe to study the Fed...they can observe the same thing much closer to home...Originally posted by lomaxzoltor View Post
At last check the ECB had something over €63 billion of sovereign Eurozone country bonds on its balance sheet in that ever elusive "maintaining confidence" Central Banker goal...
ECB's Trichet Rejects Weber's Call to End Bond Purchase Program
By Christian Vits - Oct 17, 2010 3:00 PM PT
European Central Bank President Jean-Claude Trichet rejected Bundesbank President Axel Weber’s call to end the bond purchase program that has provided a lifeline for European governments and banks trying to shore up their finances.
“This is not the position of the Governing Council, with an overwhelming majority,” Trichet said when asked to respond to Weber’s Oct. 13 call for an end to the program, according to a transcript of an interview published yesterday in Italian newspaper La Stampa...
...The ECB started buying government bonds in May after agreeing to support the EU-led package of 110 billion euros of emergency loans for Greece. The purchases were part of the EU- wide push to rescue the euro, which fell to a four-year low on June 7, after the Greek crisis threatened to undermine the 16- nation currency bloc...
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Re: Germany tells the PIIGS (& those whom bank rolled them) to DROP DEAD!
And...
Irish, Spanish Banks Failing to Kick ECB Habit: Euro Credit
Oct 28, 2010 4:01 PM PT
Greek, Irish and Spanish banks are falling behind their counterparts across Europe in reducing their dependence on emergency central bank funding because they can’t find investors willing to buy their bonds.
Lenders from those three nations took 61 percent of the loans supplied by the European Central Bank at the end of September, up from 51 percent the previous month, data from their respective central banks show...
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Re: Germany tells the PIIGS (& those whom bank rolled them) to DROP DEAD!
This is the first plan to 'fix' the Euro sovereign bond crisis that has sounded reasonable to me. Up until now, Europe has been pretending that the PIIGS can dig out of their hole entirely through fiscal austerity measures, when everyone knows they're in too deep, and badly need some form of debt restructuring or default. This maps out a path for an orderly default/restructuring that doesn't involve breaking up EMU. Yes, there will be a negative impact on the market for bonds from the PIIGS... like that wasn't going to happen anyway. I'll take a realistic plan with some pain over wishful thinking any day.Comment
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Re: Germany tells the PIIGS (& those whom bank rolled them) to DROP DEAD!
Couldn't agree more.Originally posted by ASH View Post
Central banks are doing everything to manipulate and "convince" the markets that various sovereign bond risks are lower than they actually are. And the only way to sustain that is to put a permanent "put" under those bonds to "protect" the private capital that they have enticed into those markets. Even that "paragon of Central Bank virtue", the ECB, has been co-opted.
Enough already!Comment
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Re: Germany tells the PIIGS (& those whom bank rolled them) to DROP DEAD!
Well that is there game isn't it? Think about it, the bankers need the sovereign debt to hold in order to control all of us. Without debt, you cannot control people. In this case if the people that own the Sovereign debt lose faith in it and begin to dump it, those that owe the debt will not be controllable. "Ordo Ad Chao"Originally posted by GRG55 View Post
I am glad that you had enough already, maybe some silent but define action may be in order? Like getting your own group together and putting into effect an alternative currency or medium of exchange.
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