Posts Tagged ‘Dexia’

Notes From Underground: Rumor Has It DEXIA BANK RESCUE IS FALLIN APART

November 22, 2011

The market is rife with rumors about the previous agreement to bail out the bank and insurance firm DEXIA is coming apart as the Belgians are balking at the cost. Something that needs to be considered is that the French are probably putting pressure on the deal to force the Germans to agree an EBC-sponsored bailout so as to get a major infusion of capital. Dexia is already a problem for Europe so by getting the Belgians to pull the plug on the deal the French can force the Germans to immediately step up and agree to a large role for the ECB.

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Notes From Underground: Spanish Election Provides No Surprise

November 20, 2011

As the polls expected, the Spanish election offered no surprises as the Center Right Popular Party appears to have attained an outright majority and the socialist party has been trounced. The markets appear to want to believe that this outcome is EURO POSITIVE AND SPANISH AND ITALIAN DEBT POSITIVE BUT I WARN THAT IT AIN’T NECESSARILY SO. Did the PP win a historic election so that they can deliver MORE AUSTERITY TO THE SPANISH PEOPLE? HOW MUCH ECONOMIC CONCESSIONS ARE THE SPANISH PEOPLE WILLING TO MAKE? IF THE ANSWER IS VERY LITTLE, THEN WHAT NEXT FOR THE EUROPEAN UNION?

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Notes From Underground: Sarkozy will borrow Trichet’s Mask and go as Marshal Petain for Halloween

October 30, 2011

The more things in Europe are reported as “calming,” the stranger the news stories that emanate from the various European capitols. In the weekend Financial Times it was reported that President Sarkozy told his citizens that they needed to act more like Germans. If France is to avoid slipping into a terrible sovereign DEBT CRISIS the French are going to have to adopt German-style frugality and a better work ethic. Sarkozy believes that the 35-hour work week must change for as France worked less, the Germans invoked the HARTZ IV program of structural changes to its labor force. Under the leadership of Gerhard Schroeder, the German unions voted for labor austerity in exchange for business not exporting jobs to lower-cost regions in Eastern Europe.

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Notes From Underground: Sarkozy and Merkel Place Europe On Double Secret Probation

October 10, 2011

It is now official: EUROPE UNDER THE GUIDANCE OF THE TWO DEANS OF PSY-OPS HAVE A PLAN FOR RECAPITALIZING THE BANKS AND BOLSTERING THE EUROPEAN FINANCIAL SYSTEM. The world heaved a sigh of relief that the Sunday meeting in Berlin resulted in a PLAN. The intricacies of what the plan entails are a secret, but for today the markets reacted positively, grasping for any sense of hope. The world’s equity markets reacted as if EURO’s were being air dropped all over the continent. The BUNDS were sold as the reallocation trade sent money exiting the havens in search of risk and the possibility of higher returns … at least for a day.

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