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This sounds eerily similar to informal talks IMF was having with Greece before its full-blown supposed bailout. Hungary is hungry for dollars like most of eurozone, Iran, Tom Brady's wife etc.
and of course Germany itself had to pull an auction of its debt quite recently as well. Hmmm. How long before "the Adolph Eichmann of Finance" known as the IMF throws Bavaria under the bus? Indeed I think the IMF may have been "out of ammo" for quite some time now. It certainly goes a long way towards explaining why this so called "crisis" (20% percent rates in Greece is a crisis? Can hardly wait to hear what they think is actually bad!) keeps churnin' and burnin'. Welcome to what they called in the Cold War "the Domino Theory"--only we're talking "the capitalist version" this time. There appears to be a "flaw" in the "programming" although why anyone should be surprised is beyond me. Karl Marx said it best: "there's a contradiction." He just didn't point to the right one.
they have some gold left to unload before they run completely out
The world is drowning in debt.
Don't they pay attention to the "pickup truck indicator" over in Hungary? What is wrong with them?
I missed that one. Please enlighten me?
Good find Tyler...
And I thought today was going to be boring.
chug-a-chug-a-chug-a chug.....I hear the money a-printin'!
No need to worry people, just take it easy..The IMF is going to open an SDR line of credit shortly and all will be well this evening..
Don't know about Hungary but a majority of the outstanding corporate bonds in the east are denominated in Euros. Look for Austrian banks blowing up soon.
whoa Hoeing just said he pushing for the rates to be jacked to 1% by end of summer.
"WASHINGTON (MarketWatch) -- Thomas Hoenig, the president of the Kansas City Federal Reserve bank, laid out on Thursday his proposed plan to take short-term interest rates from near-zero to 4.5%. In a speech in Bartlesville, Okla., Hoenig said the country pays a high cost for low interest rates, suggesting that the financial crisis stemmed from the very low interest rates of 2002-2005. Hoenig said the Fed should aim to get the federal funds target rate to 1% by the end of summer and then pause to assess the outlook. This should be followed by moving rates to 3% "reasonably quickly" and then a final stage bringing rates to 4.5%. Hoenig said the most recent economic data hint that the economy may be stronger than expected. He said inflation would likely to remain low for the next year or so, but then drift higher"
Good idea, why don't they just default straight away.
The interest payments would be 200% of tax revenue.
Another CDS scam...next....
@Leo : Bad world we're living in. Maybe Debrahlee's "arguments" need to be regulated ?
It is not the same situation as Greece. Hungary is not part of Eurozone, they can print their own money. The question is - How do you short Forint?
Not really. That's the problem if their corporates have Euro denominated debt. If you print you bankrupt them all.
I see your point. Thank you
I'm not 100%, but all their neighbours have done so, courtesy of Austrian banks.
Let me guess. The IMF will offer the same deal as america got during the last great scam depression. Money in exchange for the ability to tax citizens directly. Although they blew that by not getting it ratified.
Nope just figured it out. Everybody's bond auctions fail. The IMF comes in and collects carbon credit taxes from all the broke countries. Nobody asks a single citizen what they want to do. The citizens form into a unified whole of hatred and disgust and blow up the entire galaxy with our minds.
Having gone to Budapest not long ago, the whole city seemed to be in a general malaise, waiting for something to happen. They are not lazy people but have been at the crossroads of many political and economic influences, including communism, and have not yet recovered fully.
I'd recommend it for its spas and cuisine and while it does have a long history you have to search it out. Of course the Opera House is pretty famous.
things aren't looking great for Hungary at the moment. but expecting it to be Athens mark 2 is a little over the top. seriously.
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