This page has been archived and commenting is disabled.
Euro Hit By Two-Headline Punch
Yesterday it was headlines from Bini-Smaghi and Weidmann punching the lights out for the Euro (which as we have been saying all along, needs to be lower not higher to promote some glimmer of hope for Europe). Moments ago it was two new headlines, which if not market crushing on their own, show how increasingly precarious Europe is.
- ITALY PARLIAMENT FAILS TO ELECT PRESIDENT IN FIRST BALLOT
- MERKEL FALLS SHORT OF COALITION MAJORITY ON CYPRUS VOTE
In other words, despite hopes that the Italian political chaos would stabilize following a compromise presidential candidate (which we noted earlier today we would believe when we saw), Italy continues to be an ungovernable chaos. As for Germany, Merkel was forced to rely on opposition votes to pass the critical Cyprus rescue package on which she has literally bet the future of Germany and her political career. While not unexpected, this portends poorly for the Chancellor's September reelection chances, especially if the German anti-Euro party continues its recent surge in popularity in the past few weeks.
Bloomberg has the breakdown:
- Chancellor Merkel gained 303 votes from her own coalition lawmakers in a vote today to approve aid for Cyprus, fewer than needed to secure their own simple majority in the 620-seat lower house of parliament, the chamber’s press office said in an e-mailed statement.
- 220 CDU-CSU lawmakers backed the aid program of EU9b while 10 rejected the packge; 83 FDP lawmakers backed the move and 8 rejected it, meaning Merkel depended on opposition parties to get the package approved
EUR reaction is swift, although it may be discounting the amount of "political capital" invested...
»
- 7376 reads
- Printer-friendly version
- Send to friend
- advertisements -
Didn't Schaeuble say the worst of the Euro crisis is 'behind us'?
Always means the opposite of what they "say".
He has changed his name. Formerly he was known as "Dr. Strangelove" ...
note that "the worst is behind us" from Dr. Strangelove is not the same as "europe is fixed" from some unknown-to-me US financial pundit
"despite hopes that the Italian political chaos would stabilize following a compromise presidential candidate (which we noted earlier today we would believe when we saw), Italy continues to be an ungovernable chaos"
well, I would have found it strange that the Italian lawmakers would choose their President in the first ballot - since it requires a two-thirds majority
and yet Italy is on "auto-pilot", Monti is in charge of the caretaker government and Italians usually don't feel the urge to have a vigorous, empowered administration that is seen as a precondition to life elsewhere
of course, markets love, love, love strong governments and there is this strong interest in getting the EUR down - as long as no additional printing is necessary to push it below the "hurt" levels
This graph is really missleading. It's back to where it was only 3 hours ago.
Down goes Frazier!!!
http://www.youtube.com/watch?v=JZEIMQ42-oU
He was correct, assuming he was rolling backwards.
No comrade Barroso said that!
I don;t like the idea of Schnauble, or any other Germanic shirt-lifter, being behind me...
I never could have seen this coming. /sarcasm.
Can this thing just explode already!?
Poor choice of words for this week.
Touché
When do they trot out the European equivalent of Baghdad Bob?
Vee see nothing!
http://www.youtube.com/watch?v=8105U1WY9ro
Herman van Rompoy is Baghdad Bob. In fact, he is an even better clown.
Who needs a Baghdad Bob, if one has Dieselboom?
"ITALY PARLIAMENT FAILS TO ELECT PRESIDENT"
Yeah, not a lot of 'takers' for that job,are there?
oh, Berlusconi would love to get it - it's the ultimate "get out of prison" card
Somebody call Lloyd Blankfein & find out who is left on the "Goldman Sachs Alumni Listing' who would like to relocate to Europe? The position comes with two (2) assistants at the position's beck & call....Rompuy & Barrosso....
Well,
Looks like their not gonna be happy till they're hanging from trees folks.
Keep pushing boyo's, keep it up.
they will keep voting till they get the correct outcome
Compensation in Europe has been going to all the wrong people for far too long. Fuck em, time to "take it to the mattresses".
"Hey, Paulie,Yous know any good places on the East side?
Social unrest in Greece :http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_18/04/2013_494423
As I have been saying for nearly 2 years now.
The physical economic structure of Italy is breaking down.
Politics in that country merely reflects the facts on the ground.
http://www.youtube.com/watch?v=er2luQJtefw
No large country can take such a huge loss of energy density especially if it does not have a national currency which can help to substitute goods & services.
I hope this shuts up the "Don't worry, the Germans will revolt and stop this!" crowd. There are no "Germans" (Or "French", Belgians", Spaniards", etc. etc., ad nauseum) anymore, just "Europeans". Among the elite in charge, of course. While the Cypriots may be allowed ot vote on this, they'll have to keep voting until they approve their own rape.
Merkel, check your pants 4 chicken poop.
Grazie a Dio! Gli italiani stanno meglio senza governo che con un governo pro-Torika por-Euro!