Posts Tagged ‘European’

Notes From Underground: Europe is Scaring The Financial Markets and the World (Obama)

September 27, 2011

In a speech today, President Obama proclaimed that European inaction on its debt crisis was scaring the world, implying that the EUROCRATS were causing global growth to slow by raising fears of the a major credit debacle. It seems that the G-20 was entirely dedicated to bashing the European financial policymakers about the foot-dragging and infighting that is delaying action on the dual problems of sovereign debt and the newly discovered bank solvency issues. Rumors arose Sunday night that a package had been crafted to leverage the EFSF to almost 2 trillion euro from 440 billion euro. However, failure to verify the rumors left the markets moving up and down as confirmation was not forthcoming from European authorities.

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Notes From Underground: THE BANK OF THE UNITED STATES (THE FED) … That is the REAL Jackson’s HOLE

August 21, 2011

The week ahead will be waiting for the words of wisdom from Ben Bernanke and his take on where the U.S. is at and where the economy is possibly going. THERE WILL BE NO QE3. IT IS NOT BECAUSE OF RICK PERRY BUT BECAUSE QE2 IS A FAILURE BY ANY METRIC. THE YIELD CURVE IS FLATTER; UNEMPLOYMENT HASN’T IMPROVED; AND THE BELOVED PORTFOLIO BALANCE CHANNEL IS A NON-EVENT– AS MEASURED BY THE S&P/BOND RATIO–FOR THAT BELOVED INDICATOR IS BACK TO WHERE IT WAS AT LAST YEAR’S BERNANKE BLOCKBUSTER SPEECH. What did we get for the $600 BILLION in asset purchases. I know things would’ve been much worse. The FED has locked itself in to a two-year zero rate policy so it makes Bernanke’s task very difficult as the FED has expended a great deal of good will and has very little to show for its effort.

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Notes From Underground: When Spanish Bonds are smiling, Bernanke visits Frankfurt in search of clues

November 18, 2010

The Spanish government sold $2.5 billion (€3.65) 10-YEAR NOTES at auction and Dr.Pangloss said it went well, as the average yield was 4.615 percent. Finance Minister Elena Salgado said she saw “absolutely no reason” to compare Spain’s situation with that of Ireland or Portugal. Well Madam Finance Minister, all is not well as you have 20 percent unemployment and an exploding deficit as tax revenues implode and expenditures increase. Spanish DEBT is yielding 210 basis points more than Germany. The Spanish economy is struggling and German growth is buoyant, and yet, Spain is paying more for long-term financing, there is definitely a problem. The Irish situation remained in limbo as EUROPEAN demands are being met with resistance by the politicians of the Emerald Isle. Deputy  Prime Minister Mary Coughlan said the Irish corporate tax rate was “non-negotiable.”

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