Posts Tagged ‘Germany’
Posted by Larry Doyle on June 1st, 2010 8:58 AM |
How do you think the wizards in Washington are feeling about the European bailout structured two weeks ago at their behest? In those two weeks, the Euro has plummeted another 5%, equities continue to suffer, and credit spreads continue to widen.
Our Washington wizards are looking back into their bag of tricks and now recommending another of their ‘shell game’ proposals to their European counterparts. Which proposal might this be? How do you spell charade? Try, bank stress tests.
Treasury Secretary Geithner is pressuring European central bankers to perform and release bank stress tests as a precursor to restoring financial health and stability into the European system. The Wall Street Journal highlights Geithner’s recommendation this morning in writing, U.S. to Push Europe on Stress Tests:
The U.S. intends to urge Europe to disclose publicly the results of bank stress tests as a way to calm jitters over the health of the Continent’s financial system, U.S. officials said. (more…)
Tags: Bank Stress Tests, Ben Bernanke, CRE, EU bailout, European bailout, european bank stress tests, FDIC, Germany, helocs, losses in banking system, losses in european banks, Sheila Bair, Tim Geithner, U.S. to Push Europe on Stress Tests
Posted in European Central Bank, European Union, General | 4 Comments »
Posted by Larry Doyle on May 5th, 2010 8:20 AM |
With social unrest increasing in Greece, anxieties skyrocketing across the EU, and the Euro making new 12 month lows, the question begs as to whether this crisis within the EU can be contained. Is the EU, with the support of the IMF, willing to collectively underwrite the fiscal disaster currently focused within Greece? The German citizenry is showing very little appetite to subsidize this Greek tragedy.
While the EU’s political fortitude is a critical question, ultimately the reality of the mountainous debt levels must be faced. Global government stimulus has been able to mask, if not outright disguise, these debts for a period, but the debts themselves are not going away. How will the EU address this debt?
1. Devalue. That’s a given. It’s only a question of how and when.
2. Restructure. Look for more on this.
3. Default. Do not discount this reality. (more…)
Tags: A Tale of Three Cities, Athens today London tomorrow? Washington next week?, Country Vulnerability Scorecard, debt crisis, devalue restructure or default, Eastern Europe, EU crisis, Europe on the Ropes, European crisis, George Soros, Germany, global economic meltdown, global government stimulus masking debt, Greece, Greece fiscal crisis, Greek debt crisis, IMF, IMF and EU bailout of Greece, John Mauldin, leverage in Europe
Posted in Eastern Europe, Euro, European Union, General, Greece | 4 Comments »
Posted by Larry Doyle on February 12th, 2010 7:11 AM |
No rest for the weary.
If you thought yesterday’s nice 1% upward move in our equity markets was a precursor for calmer and stronger markets ahead, think again.
Overnight developments in China, Greece, and Germany are clear signs that our economic landscape remains challenging and our markets remain fragile. Let’s navigate:
1. Looking eastward, China’s central bank raised reserve requirements (interest rates) by 50 basis points (.50%). Why? (more…)
Tags: asset bubble, asset bubble in China, asset bubble in China's property markets, China, China raises rates, China's property markets, Chinese raise rates, Euro, GDP in EU, German economic stagnation, Germany, Germany economy, Greece, Greece fiscal disaster, Greek drama, inflation in China, problems in Europe, property market in China, why is market down today february 12 2010
Posted in China, General, Germany, Greece | 1 Comment »
Posted by Larry Doyle on March 24th, 2009 12:52 PM |
I wrote earlier today about the ongoing pressure being applied on our senior financial representatives in Washington by their counterparts in China. In Congressional testimony this morning, both Secretary Geithner and Fed chair Bernanke have discounted China’s call for a new international reserve currency.
The Obama administration is not only being pressured by China prior to the upcoming G-20. Our European allies also have a decidedly different tact on the appropriate financial maneuvers for global governments at this time. While the United States is currently promoting the need for massive fiscal stimulus on a global basis, the WSJ reports from Europe, ECB Chief Says Stimulus Not Needed.
(more…)
Tags: China, Chinese government surpluses, ECB Chief Trichet, Fed chair Bernanke, fiscal stimulus, G20, Germany, hyper-inflation, IMF, Obama Administration, Secretart Geithner
Posted in Barack Obama, China, Current Affairs, European Union, Foreign Affairs, Germany, Obama Administration | 1 Comment »
Posted by Larry Doyle on February 26th, 2009 4:30 PM |
I have always been intrigued by Germany. From the history of the republic, to the wars, the division and reunification, Berlin, Munich, the food, the beer — there is a lot going on there. I had the good fortune of spending a college semester in Freiburg, which is in the southwestern corner of the country. “Wie geht’s,” meaning “how are you,” evokes many pleasant memories. The education both inside the classroom and out was fabulous.
There is little doubt that Germany carries the most weight within the European Union. Germany suffered massive inflation after the Weimar Republic and the fear of hyperinflation is deeply embedded in their culture. Given my experience and interest, I watch developments there fairly closely. (more…)
Tags: beer, Berlin, China, Clinton, college, Germany, Munich, Russia, Technology, Trade, Wie Geht's
Posted in Auto Industry, China, European Union, General, Germany, Hillary Clinton, Obama Administration, Russia, Technology, Tim Geithner, Trade | No Comments »
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