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More Info On Moral Hazard, Global Edition, Via FT Germany
From the FT's German edition.
The federal government is preparing an aid package for Greece. As the Financial Times
Germany learned from Berlin's coalition parties, both bilateral aid as
well as an internationally coordinated approach at EU level in the
interview. Details about Finance Minister wants to Wolfgang Schäuble (CDU), the head of the Union Group, informed on Wednesday. Because of the debt crisis of Greece, the real fear "a greater fault
than the crisis at Hypo Real Estate," it said in coalition parties. The aim is a European solution. However, it alone is not ruled out of Germany.
For weeks the anxiety driving around in front of a bankrupt state of Greece to the capital market. The risk premiums on government bonds and credit derivatives Hellenic increased rapidly. Athens attempts to connect with an ambitious savings plan's credibility again, so far proved to be unsuccessful. Prime Minister George Papandreou announced that the state deficit press
2010 from the current level of 12.7 to 8.7 percent of gross domestic
product (GDP).
Investors hold a life not ruled out for Greece. On Tuesday, a real rally began,
the euro appreciated against the dollar, stock markets in Southern
Europe, and put the risk premiums have declined. The Itraxx-SovX-western Europe from Markit, the
widergibt the lapels of credit derivatives on 15 European countries,
was of 109.5 to 108 basis points. Spreads on Greece, Portugal and Spain, a narrowed to 30, 11 a.m. to 10 p.m. basis points.
the euro appreciated against the dollar, stock markets in Southern
Europe, and put the risk premiums have declined. The Itraxx-SovX-western Europe from Markit, the
widergibt the lapels of credit derivatives on 15 European countries,
was of 109.5 to 108 basis points. Spreads on Greece, Portugal and Spain, a narrowed to 30, 11 a.m. to 10 p.m. basis points.
Trigger for this was the news that Jean-Claude Trichet, President of
the European Central Bank, the EU will attend the summit on Thursday. This increases the probability of bail-outs, it was said in the trade.
the European Central Bank, the EU will attend the summit on Thursday. This increases the probability of bail-outs, it was said in the trade.
Financial support for Greece in theory could take several forms. The whole EU could put together a loan package or individual countries like Germany or France. As an option is in addition to an emergency loan from the International Monetary Fund (IMF). Also conceivable are guarantees for Greek government bonds or the introduction of a European bonds.
"There is no
permanent relief framework, if an EU country gets in trouble," said
Paul de Grauwe, a professor at the Catholic University of Leuven in
Belgium. "Governments should develop spontaneous solutions." Financial aid is not excluded by the Treaty of Maastricht. De Grauwe, in particular considers loan guarantees for appealing. This path was taken during the Latin American crisis in the 80s. The financial instruments were Brady bonds.
permanent relief framework, if an EU country gets in trouble," said
Paul de Grauwe, a professor at the Catholic University of Leuven in
Belgium. "Governments should develop spontaneous solutions." Financial aid is not excluded by the Treaty of Maastricht. De Grauwe, in particular considers loan guarantees for appealing. This path was taken during the Latin American crisis in the 80s. The financial instruments were Brady bonds.
Der
stellvertretende Fraktionschef der CDU/CSU im Bundestag, Michael
Meister, bestätigte, dass in Berlin an einem Rettungspaket gearbeitet
wird. The deputy leader of the CDU / CSU in the Bundestag, Michael Meister, confirmed that work in Berlin on a rescue package. "Oberste Priorität für die Union hat ein stabiler Euro", sagte Meister FTD.de. "The first priority for the Union has a stable euro," said Master FTD.de. Es gebe allerdings keinen Automatismus, dem Mittelmeerstaat beizuspringen. However, there is nothing automatic beizuspringen, the Mediterranean country. "Wenn
Griechenland Hilfen erhält, dann nur unter strengen Auflagen und wenn
die griechische Regierung den Staat tiefgreifend reformiert", so
Meister. "If Greece receives aid, then only under strict
conditions and if the Greek government radically reformed the state,"
said Meister. Da
Staatshilfen für Griechenland wie etwa Kredite aber auch vom Bundestag
abgesegnet werden müssten, will Schäuble die Abgeordneten frühzeitig
für die Rettungsaktion gewinnen. As state aid for Greece, such
as loans would be sanctioned, but also by the Bundestag, Schäuble wants
to win the vote early for the bailout.
stellvertretende Fraktionschef der CDU/CSU im Bundestag, Michael
Meister, bestätigte, dass in Berlin an einem Rettungspaket gearbeitet
wird. The deputy leader of the CDU / CSU in the Bundestag, Michael Meister, confirmed that work in Berlin on a rescue package. "Oberste Priorität für die Union hat ein stabiler Euro", sagte Meister FTD.de. "The first priority for the Union has a stable euro," said Master FTD.de. Es gebe allerdings keinen Automatismus, dem Mittelmeerstaat beizuspringen. However, there is nothing automatic beizuspringen, the Mediterranean country. "Wenn
Griechenland Hilfen erhält, dann nur unter strengen Auflagen und wenn
die griechische Regierung den Staat tiefgreifend reformiert", so
Meister. "If Greece receives aid, then only under strict
conditions and if the Greek government radically reformed the state,"
said Meister. Da
Staatshilfen für Griechenland wie etwa Kredite aber auch vom Bundestag
abgesegnet werden müssten, will Schäuble die Abgeordneten frühzeitig
für die Rettungsaktion gewinnen. As state aid for Greece, such
as loans would be sanctioned, but also by the Bundestag, Schäuble wants
to win the vote early for the bailout.
Zeitdruck entsteht derzeit durch die umfangreichen Wetten gegen den Euro. Time pressure is being built by the large bets against the euro. Am Donnerstag treffen sich die europäischen Regierungschefs zu einem informellen Gipfel in Brüssel. On Thursday, European leaders meet for an informal summit in Brussels. Dort wollen die EU-Staaten über ein abgestimmtes Vorgehen in der Griechenland-Krise beraten. There will advise the EU countries on a coordinated approach in the Greece-crisis.
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We will all live to see PIIGS fly.
If they don't fly high enough, they may hit the BRIC wall.
Hey, the bar is now open again! Free Ouzo today! Germany will pick up the tab.
Every PIIGS, every California, every wallowing pig is going to get a bailout. Courtesy of those who were prudent and saved their money. Silly us. Sucks to be a saver.
But, at some point we will just say no.
The FT Deutschland despite its name is not part of the FT Group, it was sold by the Financial Times owners Pearson some time ago.
oh great so a problem of debt will get cured with a loan ie more debt
this is just insane
how the f*ck is that ever going to work
still the market thinks its good
the market must be made up of complete idiots as well
It's very simply.
Me: Owe people 50 billion dollars
People on my block: They lend me 50 billion dollars after begging in the middle of the street all week. Because they are afraid people passing by will see and not think their homes are worth anything.
Me: Now owes the people on my block 50 Billion dollars.
People on my block: Just through cash in a furnace.
Great news for everyone. Nobody has to pay bills anymore to anybody owed money because someone else will pay them for us. Until..they dont
"the market must be made up of complete idiots as well"
Yep, it is confusing and not understandable to you, so it must be the 'them' that are irrational idiots. It's really that simple, you think the markets should go down and when they don't your brain locks up. Your willful disregard and misunderstanding of macroeconomics and the functioning of markets borders on the ludicrous.
'Stupidity'/'Manipulation'/'Intervention'/etc... are all just broad-brush ways of rationalizing the fact that you really don't know very much about cause and effect with respect to global economics.
Hey, just like every poker game needs a sucker, looks like the market efficiently found another one...
To be honest, I don't understand why the EUR/USD strenghtened on the idea that a bailout was possible. Shouldn't that weaken the EUR/USD?
I just don't understand the major moves... Go ahead and call me an idiot.
Consider this market rally a gift. Time to put your shorts on! I prefer board shorts. But something copper laden or Chinese related would always look nice :)
German govt spokesman says reports about decision on aid for Greece are "unfounded" - Reuters
Ach du meine gute!
Was is los?
Unfu^%&^$%&ing-glaublich!!
Citizens of Germany have as much say in bailouts as serfs....er, citizens in America do.
Pay your taxes on time, proles. Davos ain't free.
TBTF, bitches.
They will moan and groan about it just like we do, but in the end, they will bend over and take it (just like we do).
There's a silver lining to everything: Prostate Massage.
good
I'd like to say how the german tax payers would react if it is true
Why they don't just kick the kebab boys out of the euro zone is beyond me. surely that would solve the problem and make the euro more stable. job done
The German taxpayer is working overtime at a Greek gloryhole, trying to make a Euro. If things work out, they are taking the show on the road, next stop Portugal.
Meanwhile the Goldman team was seen boarding Air 85 Broad at King Leonidas Airport a few moments ago. Tower says they are headed for Portugal.
GS:Rinse and repeat. We cannot make money long the markets anymore. Time to make a killng on CDS and going short. Whos the next country we can get in the main stream media as a negative catalyst?
And herein lies the problem with allowing a COMPANY TO WAGE ECONOMIC WARFARE.THEY DONT NEED NUKES.
What a rodeo. Germany bails out Greece. No wait, just a rumor. Oh hell, let's rally anyway. It's not like stocks are worth more or less than they were 2 hours ago. I mean stocks are worth almost nothing so a little more than nothing is a terrific reason for a rally.
Totally why the EU is a sham... Germany lowers rates last few years to pump up output -- they make things. Greece borrows and parties -- they don't make things... Greece hits the debt service wall. Germany says why should we hold you up -- we make things you just party... EU Minister "There is no leaving the EU..." I'm sorry but this whole EU structure is by Germany, OF Germany and FOR Germany... AND they actually make things!!!
I am sure there are PTA meetings which have far more order to them than this collective and its discordant press relations... If it can't even manage news how the heck can it manage finances of SIXTEEN INDEPENDENT NATIONS?
See you all at parity for a parity party...
Rodeo http://www.urbandictionary.com/define.php?term=rodeo
A rodeo usually begins at the end of a drunken night in the bar, with a game of "Pull the pig". Once someone wins by attracting the ugliest woman in the bar, the rodeo is on.
You will require at least one friend to beat you home and conceal themselves around the bedroom (under piles of clothes, behind curtains, under the bed, etc).
When you arrive home with your fat ugly trophy you must persuade her to come to bed with you, this is not usually a problem with the fatter more rancid looking catches.
Dispite how ill it might make you, you must engage in sexual intercourse as soon as possible to prevent your friends from getting cramp in their small hiding places...
The main event comes when she approaches orgasm (or before but this way usually gets a better effect). Remember you must be in the doggy position for any of this to work right..
As soon as she begins to climax, yell RODEO!!! at the top of your voice, at which point the room should explode with hidden friends yelling at the top of their lungs (with flashing cameras for best effect) causing your fat assed partner to start rocking and bucking like an angry buffalo trying to escape the flashing cameras and hide her big naked ass. The trick is to stay on her for as long as possible after the initial yell.
"Got a 13 second rodeo on Sarah last night, she won't talk to me now..."
Each time an ideology and/or a religion prevail over simple common sense, an economic collapse and political turmoils are just around a corner.
This time, it is a Pan-European confederation to be preserved & protected. Let us review the players:
- Socialist EU parliament with lots of egos, delusions of grandeur, and an overwhelming lust for power with very little understanding of reality and no concerns for real people (if their European union collapses then EU parliament cease to exist with all these leaders and bureaucrats losing their "wonderful" jobs)
- Political leaders of individual european countries who must appeal to their own voters to be reelected
- Citizenry of these individual countries who care only about themselves and used to live at somebody else expense
- Germans leaders who historically could not do anything geopolitically right
- France suddenly found itself in a position of a European and even world "superpower"
There are so much to fight for and to protect at any cost!
Well, so much egos and so many dreams are falling apart just because it is a time when there are no more suckers to lend you money or pay your bills. Unfortunately for many, one can not fool the Mother Nature
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