Mish's Global Economic Trend Analysis |
- Sheer Panic; EU Revives Default, Buyback Ideas; New Strategy Coming "Shortly", No Timeline Set; Here's a clue: They are Clueless
- Recall Madness in Wisconsin: Republicans Run as Democrats; Permanent Election Season Through 2012
- European Government Bond Spreads at Record Highs vs. Germany; 2-Year Spreads: Greece 30.09, Portugal 17.11, Ireland 16.58
- Bond Vigilantes Strike; Crisis in Italy Escalates; Portugal 2-Year Debt Hits 18.36%, Greece 31.34%, Ireland 17.83%; New Record High Spreads
- Invisible Elephant Now Visible; EU Ready to Tell Trichet to "Stuff It"; Help for Italy?
Posted: 11 Jul 2011 08:03 PM PDT Once again the best comedy show anywhere comes from the offices of the ECB and EU. Please consider EU Revives Buyback Idea as Crisis Hits Italy As exploding bond yields in Italy and Spain brought the crisis closer to the heart of the euro area, Europe's search for answers took it back to proposals that were scuttled by Germany earlier this year. After a nine-hour meeting, the 17 euro ministers issued a six-paragraph statement pledging to flesh out details of a new strategy to end the 21-month-old crisis "shortly," without setting a timeline.If that collection of inactivity, unbelievable promises, conflicting strategies, and blame placing does not show panic, what does? Please note the buyback proposal involves German taxpayers. Think that will fly? In a state of panic, who knows what the ECB and EU might consider. However, they sure could not agree to anything in a nine hour meeting other than to agree to announce a plan "shortly". Here's a clue: They are clueless. For additional commentary on Monday's events, please consider
Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recall Madness in Wisconsin: Republicans Run as Democrats; Permanent Election Season Through 2012 Posted: 11 Jul 2011 01:21 PM PDT Wisconsin Democrats, upset by fiscal sanity and common sense legislation that will benefit all Wisconsin have launched a recall campaign against six Republican legislators who sided with Governor Scott Walker on much needed collective bargaining legislation. In response, some Republicans are hoping to win the primary by running as Democrats. The recall Republicans effort is this week. Moreover, Republicans are hoping to recall two Democrat legislators. The Republican primary is July 19. Please consider 'Madness Abounds' as Fake Candidates Confuse Wisconsin Recalls Wisconsin voters will choose among real and fake Democrats this week to challenge six Republican senators in recall elections that may derail the agenda of Governor Scott Walker.Union-Busting is a "Godsend" I comment Governor Walker and everyone who voted for his common-sense proposal. The results are in: Union-Busting is a "Godsend"; Elimination of Collective Bargaining is the Single Best Thing one Can do for School Kids Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Posted: 11 Jul 2011 10:00 AM PDT 10-Year Government Bond Yields and Spreads vs. Germany
2-Year Government Bond Yields and Spreads vs. Germany
Notice those incredible spreads on 2-year yields. Greece 30.09, Portugal 17.11, Ireland 16.58 ECB president Jean-Claude Trichet can scream "no defaults" all he wants but the bond market simply will not go along. For the charts that made up this post, and for additional commentary, please see ...
These numbers likely have Trichet and EU officials ***ting bricks. What are they going to do, up the size of the bailout fund to infinity? Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Posted: 11 Jul 2011 08:34 AM PDT In response to EU Calls Emergency Meeting on Italy; Don't Worry "It's a Coordination, Not a Crisis"; Short Sellers Blamed; Junckeritis Spreads I received an interesting comment from "fedwatcher" The "Bond Vigilantes" are out in force in the European Sovereign Debt markets. What is at risk here is not Italy, rather it is the Euro itself.Portugal 2-Year Government Debt Yield Portugal 10-Year Government Debt Yield Italy 2-Year Government Debt Yield Italy 10-Year Government Debt Yield Spain 2-Year Government Debt Yield Spain 10-Year Government Debt Yield Ireland 2-Year Government Debt Yield Ireland 10-Year Government Debt Yield Greece 2-Year Government Debt Yield Greece 10-Year Government Debt Yield Germany 2-Year Government Debt Yield Germany 10-Year Government Debt Yield For further analysis, please see Invisible Elephant Now Visible; EU Ready to Tell Trichet to "Stuff It"; Help for Italy? Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Invisible Elephant Now Visible; EU Ready to Tell Trichet to "Stuff It"; Help for Italy? Posted: 10 Jul 2011 11:39 PM PDT ECB president Jean-Claude Trichet has been battling Germany, the bond markets, and EU officials over his "No Greek default, not even a soft one" stance. That battle is about ready to come to an inglorious end for Trichet. The Financial Times reports EU stance shifts on Greece default European leaders are for the first time prepared to accept that Athens should default on some of its bonds as part of a new bail-out plan for Greece that would put the country's overall debt levels on a sustainable footing.At long last Trichet is about to find out he is not bigger than the bond market. Help for Italy? Bloomberg reports Euro Falls to Two-Week Low as Leaders to Meet Amid Contagion Concerns The euro dropped against most major peers after Die Welt reported that the European Central Bank is seeking to expand a fund to include help for Italy, following a coordinated rescue for Greece by the European Union and International Monetary Fund.Invisible Elephant Now Visible On January 7 I posted Italy The Invisible Elephant. Six months later, mainstream media is discovering that fact. I had to laugh when three days ago Calculated Risk commented A top European analyst put out a research note last night calling Italy "the elephant in the room". Italy is now clearly visible, and mainstream media is 6 months late. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
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