Posts Tagged ‘Eurozone’

Shirt Losing Eurozone Style

Tuesday, March 6th, 2012

Well the bondholders sure aren’t happy!

But there’s little they can do, other than finish the Eurozone off for good!

A trillion dollars in bad debts is a lot of money, but not enough to tank the enterprise.

It’s apparent the ECB will try to to keep European banks from crash landing.

But until there’s a clear declaration that the ECB will be the lender of last resort, coupled with a German decision to start printing money and promoting domestic consumption on a big scale, the contagion and the threat to the world economy will continue to be real.

Gorilla says: “Small beer down Merkel’s back, but the deluge is coming!”


Out Of Control

Wednesday, February 15th, 2012

The Eurozone that is, as it’s clear Greece will default, it’s likely Portugal will default, and sooner or later contagion will spread to France, Italy, and Spain.

What’s desperately needed is what’s been needed all along: a clear statement by the ECB that it will serve as the lender of last resort for all Eurozone members.

What’s also needed is serious leadership by a German government whose entire fiscal and monetary policy is an amoral pack of lies foisted upon the German people.

Gorilla says: “It’s not 1923, it’s more like 1933!”


When The Same Idiots Stay In Charge

Friday, January 13th, 2012

Housing bubbles are missed, the Eurozone faces contagion, and nothing at all is being done about unemployment.

Not that this is anything new, but what’s frustrating is that no one is being held accountable for anything.

The superior officers of urinating marines, Fed governors, Wall Street financiers: you name ’em and they’re getting a free pass.

Gorilla says: “When there’s no punishment for being craven, craven becomes the new normal!”


Solved In One Sentence

Wednesday, November 2nd, 2011

Ending the years of stupidity, Greek referendum or not:

“The ECB will be the lender of last resort for the Eurozone and will defend without limit a floor price for all sovereign debt”.

Gorilla says: “It really is that easy!”


The Non-Wild Bunch

Monday, September 26th, 2011

At the ECB, where the refusal to do anything other than fight non-existent inflation threatens the destruction of the Eurozone!

As Krugman points out, and he’s only a Nobel Laureate, the ECB needs to raise the inflation target substantially, cut interest rates, and get big-time stimulus going. In fact, America should be doing the same, but we too suffer at the hands of a profoundly stupid leadership.

So what does a French ECB board member say to this: “These wild expectations only show that some people have lost the north”.

Gorilla says: “And the east, south, and west, too, if you keep this nonsense up!”


Lots Of Talk, Not Much Action

Friday, September 23rd, 2011

And now the G20 joins the party!

But there’s little word on what’s needed from any of the major players.

Greece should default on its massive debts and leave the euro.

The ECB should be buying up PIIGS debt on a much greater scale, raising the inflation target to 4-5%, and creating Eurobonds.

Eurozone banks need to be recapitalized, there’s a danger they won’t be able to borrow money in the markets to keep going.

And there needs to be large scale, job creating stimulus in the US and Eurozone.

So far, these have all been mooted, but unless something’s done very soon and very seriously the markets will collapse a la 2008.

Gorilla says: “Action this day!”


Heading Off A Bank Run

Thursday, September 15th, 2011

Or at least trying to, as 5 central banks offer 3-month dollar loans

The purpose is to provide liquidity because Eurozone banks are not able to get financing from the US market.

Everyone’s temporarily happy, but the real problem remains unaddressed: these banks are woefully undercapitalized and heavily exposed to PIIGS debt, the latter of which will only grow larger if the austerity idiocy continues.

Gorilla says: “They’ve bought a little time, but contagion will be here long before Christmas!”


Eurozone Contraction Is Contractionary

Thursday, September 1st, 2011

Manufacturing falls for the first time in 2 years!

But the march to contraction continues…

It’s difficult to understand how the developed world could be saddle with such moronic leaders. Cutting deficits means cutting demand, at a time when demand is the problem. Raising interest rates to combat non-existent inflation is the height of stupidity.

Gorilla says:”Same old Eurozone, waiting for leaders and fairies that never arrive!”


A Beginning

Monday, August 8th, 2011

At last, the ECB intervenes to buy Spanish and Italian bonds…

Of course, they’ll need to buy upwards of $2 trillion to solve the problem.

And they’ll need to cut interest rates.

And they’ll need to announce a much higher inflation target.

And they still may need a new currency regime.

Gorilla says: “Time to get serious!”


Extend And Pretend Won’t Work

Tuesday, June 7th, 2011

But what the heck, says the IMF, Greece, let’s have another go!!!

The problem that no one wants to mention is that a default will likely cause a banking crisis throughout the Eurozone. But a default is realisitically the only option open if Greece wants to avoid self-destruction.

This is because so-called leaders like Chancellor Merkel, M. Trichet and President Sarkozy have essentially lied to their publics about what’s going on: Northern European banks and the ECB are on the hook for what looks like a couple of trillion dollars in bad loans to Greece and other peripheral Eurozone countries.

With another round of extend and pretend, coupled with savage budget austerity that guarantees no economic recovery at all for another decade or more, these liars think they can keep the Eurozone going.

Gorilla says: “Good luck with that!”