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Euro Plunging As Trichet Says Greek Bailout Blows And Is "Evidently Very, Very Bad"
Dollar surging, euro plunging as Trichet says Greek bailout involving IMF is a very bad idea. Next up: Merkel-Trichet at ten paces. So much for a unified Europe backing Greece. And now with China also a net importer, a surging dollar will do miracles for US manufacturing.
From Reuters:
The International Monetary Fund
or any other body must not assume the responsibilities of euro
zone governments in dealing with economic problems, European
Central Bank President Jean-Claude Trichet said on Thursday.
Speaking to French Public Senat television, Trichet said
that members of the 16-nation euro zone needed to remain
faithful to responsibilities laid out in the Maastricht Treaty,
which incorporates stability and growth goals.
"Everything going in the direction of euro zone members
shying away from responsibilities is bad in our eyes," he said.
"If the IMF or some other body exercises the responsibility
in lieu of the Eurogroup or instead of governments, it is
evidently very, very bad," he said.
Trichet pointed to Greece as an example of a country that
had shown negligence on budget issues.
"We see the result of past negligence. This said, it was
negligence on the part of surveillance and also negligence on
the part of the Greeks," he said.
"The Greeks provided wrong figures, something that is
absolutely unforgivable and must never be repeated," he added
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Greek bancruptcy is good for the Euro long term- Jim Rogers
The faster the Euro purges this trash the sooner it will recover. Is Greece handing out IOUs yet ?
"Is Greece handing out IOUs yet?"
Get in line behind California, New Jersey, New York, Florida, Nevada etc.
Is the IMF standing reading to provide assistance to California?
Nope, that's Uncle Ben's domain. Which is the only reason anyone would accept state IOUs.
BTW do you personally draw those great comics on your site or are you holding some out-of-work GM automobile stylist hostage in your basement? :>)
A sovereign nation lying? I'm shocked!
Think big, think positive, never show any sign of weakness. Buy low, sell high.
Fear?
That's the other guy's problem. Nothing you have ever experienced will prepare you for the unlimited carnage you are about to witness.
Superbowl, World Series -- they don't know what pressure is!
In this building, it's either kill or be killed. You make no friends in the pits and you take no prisoners. One moment you're up half a mil in EUROS and the next, boom, your kids don't go to college and they've repossessed your Bentley.
This as he defecates on himself and the EU via the collateral window
To Merkel's credit she did say only as a" last resort".
...not that it will do any good...Headline on NYTimes.com "Germany and France Said to Agree on Plan for Greece"
See, it's all over. No problems. Go back to buying.
wrong figures? that's terrible..i'm sure that's never happened before. shame on them.
US Manufacturing? LOL what is that?
We make loads of stuff! Missiles, guns, aircraft, and all manner of implements for death and destruction. One of my first jobs out of high school was in a machine shop. Most of our orders were from military contractors for parts for missile systems. Town I live in now, one of the most important employers is company that makes weapons and weapons tech for Uncle Sugar. Now outside of implements of murder we really don't make all to much anymore, or at least not without gov handouts, I'm looking at you GM!
Killing is my business... and business is good.
it's um...John Deere.... and...GE..and shitty automakers. Legacy of "bigger is better".
Looks like Europe is getting a blessing by GOD who gives them the much needed inflation because of the dropping euro and as a gift their exports will go up, chinese imports go down, american imports go down, foreign investments go up and when the investors cash them in and invest in their own union, inflation will go up even more.
My European vacation this summer will be cheaper than last summer.
France:
Clark Griswold: There's the left bank kids. I bet you can't guess what bank is on the right.
Rusty Griswold: The Bank of America.
________________________
Germany:
Clark Griswold: Hello, my family and I were looking for sex.
German Neighbor: Schweinhund!
And nowhere is Lord Blankfein mentioned or Goldman Sucks?? And their pivotal role in the take down of the PIIGS?
Why do they get not even honorable mention?
Who says GS is behind this? Why not germany itself? They are the largest, the benifit the most. A small sacrifice to benifit the big.
So what will the bailout for the US states look like for the dollar? Or are we just going to do it quietly and have Zimbabwe Ben buy up all those bonds?
By that time I am afraid Americans will be more than happy to accept bailouts in the form of Kraft Mac & Cheese, Marlboros & Stun Guns.
All great items!
Hell swap out the stun guns for real guns and you would have described my family experience growing up! Toss in some Jack Daniels and it turns into a party :)
heard this is all smoke and mirrors. germany is just stalling to get the euro down to where it wants it (lower). equal to the dollar or something? so they do better with their exports?
Honestly I don't know. I know this is blown out of proportion though. Greece is tiny and even a Greece default is not that big a deal. Italy and Spain are the scary balance sheets facing the Euro. However the states in the USA are facing a similar situation to the EU member states but are in FAR more trouble. The deficits in the US among the states are nothing short of epic (some 40%+ spending over revenues) and blow the EU states out of the water. Like the EU the states cannot print their way out.
My personal belief is Germany would like a weaker Euro to keep employment up but cannot issue bailouts because of the people (Like in China it's an employment and therefore social cohesion issue). Also I'm guessing the USA wants a weaker Euro as it makes the dollar look stronger and we have not been concerned with exports for decades now. A stronger dollar makes our debt look better an allows us greater purchasing power to keep the people pacified. Imagine what would happen if the dollar was getting torched, goods and oil prices going up and no job growth (infrastructure for exporting takes time to build and far to many regs to lure people in). The world has an interest in a strong dollar at least in the short to medium term. Like a junkie they know they should quit but the quiting process is painful.
Ilargi over @ automatic earth writes brilliantly on all this. he is from europe but lives in ottawa now. he travels a lot to europe to speck. he use to be with the oil drum blog? euro-beggar-thy-currency
http://theautomaticearth.blogspot.com/2010/03/march-23-2010-euro-beggar-...
http://theautomaticearth.blogspot.com/
Germany is an oddity in the Western world, they are a developed economy that rests heavily on it's manufacturing sector. Look at the other western economies and you will see either service economies, or resource economies or mixes (Japan being hte other standout, but can be argued if they are "Western"). They have some manufacturing but not as much as Germany or in the developing world. I think they are better positioned in the crisis because they can still build real things and don't need to rely on services. I think commodities will do well but they are dependant on the manufacturing nations. And the manufacturing nations will face problems because all of them have done vendor financing. The manufacturing nations are savers and that savings has financed the selling of goods to the service economies.
I'll have to take a look at that blog. Would be interesting to see more turmoil in the EU since the whole point was to keep Germany and France at peace.
Dont forget Germany was the #1 exporter until China claimed that spot recently. It would behold Germany to have a weak Euro.
Europe wants cheap vacations! They flock to Greece in August. Germans are the biggest tourist group I think.
yeah true, they love vacationing in the desert southwest in the summer. hoards of them at grand canyon, canyonlands and arches. where it is usually 106°
EURO UNDERTOW WARNING:
http://williambanzai7.blogspot.com/2010/03/euro-undertow-warning.html
A European view: there is no bail-out, French
press is saying that Germany and France to fork out 22 billions
euros, the amount the Greek have to refinance
in April and May, bs, bs
When they start using the miracle word. You know the 'we're fucked' is sinking in.
"The Greeks provided wrong figures, something that is absolutely unforgivable and must never be repeated," he added
That one is definitely coming back for a long hard bite on the ass.
But once the euro goes lower then 1.26 I'm going long on the euro because after that, America will counter a strong dollar.
It would be very short sighted if the European banks did not profit from this decline in the EURO.
Looks like JCT and BB could tag team to shear sheeps ... the case for Greece, shear lambs
JCT is going to do some back door Clearstream shit.
You just can't stop them.
Trichet's little toy has been taken away by the bad, evil IMF
The EU, 80,000+ bureaucrats in Brussels, frozen in meetings to make a decision.
Makes the old Soviet system look efficient.
Communism is very efficient. Not very effective, however, since it efficiently does the wrong things.
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