Today, ECB President Draghi spoke to the Frankfurt Chamber of Commerce and proclaimed that the DARKEST CLOUDS OVER THE EUROZONE HAVE PASSED. Yes, since the July 26 pronouncement that the ECB would do anything to preserve the euro and its financial system–and also there would be “no taboos” on what the ECB could utilize to save the euro. The markets have certainly quieted, as has been reflected in the Italian and Spanish debt markets, as well as the equity markets across the European Union. In my opinion Mr. Draghi should not put away his boots and umbrella as some clouds may have passed but the radar is citing other severe fronts. President Draghi added in the Reuters piece: “But there is simply no alternative to the path of reform. Despite the good progress so far showing that adjustment is happening, reform efforts need to be sustained …. Countries need competitiveness to sustain growth.”
Posts Tagged ‘David Cameron’
In a BLOOMBERG article published today, “Bernanke Doubling Down on Housing Bet Asks Government to Help,” it appears that the Obama administration and the FED are in sync that something needs to be done to lift the moribund residential real estate market. This is certainly not a new development but it shows how the FED is at a loss to explain how the ultra-low interest rate policy for the last three years has FAILED to stem the decline in housing prices and ultimately foreclosures. The FED and others don’t want to admit that this IS A BALANCE SHEET RECESSION.
Almost 67 years ago, U.S. General McAuliffe told the German command that the U.S. forces at Bastogne would not surrender and actually said it in a one-word response: NUTS. In a parallel response to German/Franco demands that all European nations surrender their sovereignty by succumbing to a “FISCAL COMPACT”, British Prime Minister David Cameron basically said the same as the U.K. moved to cast a veto vote on the proposals that resulted from the European Summit.
The acrimony at the G-20 is more than even I expected after the preliminary round in late October. Political leaders are trying to assuage feelings and massage the message but even U.K. Prime Minister David Cameron has said this is not the G-20′s finest hour. Heated words were/are being exchanged about how to resolve global imbalances and restructure the entire global economy to prevent future imbalances from wreaking havoc on economic growth. Secretary Geithner even went to the airwaves to criticize Alan Greenspan for suggesting that the U.S. was deliberately depreciating the DOLLAR.