Posts Tagged ‘Jean-Claude Trichet’

Notes From Underground: Greece, Again? Or Is It Germany Versus France?

July 12, 2015

As discussed ad nauseam, politics is trumping the economics of the Greek drama as the European finance ministers are trying to cut and paste a “bailout” solution that satisfies all parties. In what is being reported as terse discussions taking place in Brussels, the Financial Times reported that German Chancellor Merkel said, “There’s not going to be an agreement at any cost.” This Merkel comment is in direct contravention to Mario Draghi’s famous pledge in July 2012, “Whatever It Take” and no taboos.

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Notes From Underground: When Irish Eyes Are Smiling, It Must Mean the World’s Focus Is Elsewhere

January 30, 2012

Greece is balking at surrendering its sovereignty as the Merkel-led European elite is shouting for more austerity from the “profligates” in an effort to insure the large continental banks against the ravages of default. As one reader e-mailed today, IT IS AS IF THE GERMANS ARE PLACING THE ENTIRE NATION OF GREECE INTO DEBTORS PRISON. Life was much easier when a country could send in its gunboats to collect its loans.

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Notes From Underground: Sarkozy Has Overplayed a Bad Hand and It Has Cost Europe

November 16, 2011

It has been the best of times. It has been the worst of times. President Sarkozy began the year with such high hopes and aspirations as he desired to raise his stature on the world stage. He won his early skirmishes against Chancellor Angela Merkel by first defeating Germany’s desire for Axel Weber to attain the ECB Presidency and then forcing the German Chancellor’s hand for a larger pool of capital for the European Financial Stability Facility. But the taste of victory has now faded as the FRENCH BOND MARKET is suffering under the weight of its deeply troubled banks and the GERMAN/FRENCH  10-YEAR BOND SPREAD CONTINUES TO WIDEN. France is deemed to be very vulnerable for its banks own so much EURO SOVEREIGN DEBT that of course is deemed to be riskless and require no haircut or capital to support it.

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Notes From Underground: No Surprises From Bernanke but Trichet and Lagarde Fail to Impress

August 28, 2011

The Fed Chairman’s remarks at Jackson Hole left those hoping for QE3 disappointed. The Wall Street crowd who have grown addicted to the “Greenspan Put” and its help in sustaining the BULL in equities were aghast that Ben failed to maintain the monetary injection. Mr. Bernanke backed off of aggressive new policy and did not mention wealth effect of the PORTFOLIO BALANCE CHANNEL. While in the serene surroundings of the Grand Tetons, it seems the FED Chairman has learned that the Fed cannot be held hostage to the daily machinations of Wall Street and the markets and fiscal policy stewards are going to have to be patient in regards to further monetary support.

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