Financial Crisis

[churchill]

"Papandreou said that while Greece was not asking for financial support from EU partners, it did need strong political backing as it battled to restore its credibility with financial markets.

This was particularly important for Greece to be able to borrow at lower interest rates than it was currently facing, he said.

"We need the help so that we can borrow at the same rate as other countries, not at high rates which undermine our ability to make the changes we need to make," he said."

http://www.reuters.com/article/idUSTRE61K0VX20100221

Is he joking stupid or what ! Everyone would like to borrow at a lower rate - I would - you would / but when you have lied about your finances / Half the country on are strike / most do not declare their taxes - Who is going to lend at the same rate as Germany ?

[AlexLah]

I feel what Socal means. Fanny and Maddy (whatever they are called) and the FHA are government owned entities right?

They have been buying up most of the rotten fish and therefore kept/ and keep the market going.

Question: Who funded these purchases and what would happen if they did not.

[Abrak]

"Greek opposition lawmakers said on Thursday that Germans should pay reparations for their World War Two occupation of Greece before criticizing the country over its yawning fiscal deficits.

"How does Germany have the cheek to denounce us over our finances when it has still not paid compensation for Greece's war victims?" Margaritis Tzimas, of the main opposition New Democracy party, told parliament."

Petty Hitler jokes are one thing but the comments that Churchill quoted are probably worse

Naam has called this very right in that it looks like out of desperation they will bail out the Greeks. But the Euro dream has ended. People are not that interested in economics but they really do not like to be treated in bad faith and anyone can smell that in this situation. It is sad to see this happening in many ways. People can debate about Lehmans and AIG forever but this move whether the least cost/only option/pragmatic is not the 'right' move. I would like to think that 'political commitment' to the Euro is an oxymoron in Germany by now. It is fine to argue the only option is to bail out Greece to prevent contagion but there has to be a point at which the move is generally considered so idiotic as to cause contagion. I would like to think that the UK will do the honorable thing and admit they got very lucky and make Soros a Lord.

[flying]

Odd..........

Citigroup Warns Customers It May Refuse To Allow Withdrawals

The image of banks locking their doors to keep customers from making withdrawals during a bank run is what immediately came to mind when we heard that Citigroup was telling customers it has the right to prevent any withdrawals from checking accounts for seven days.

"Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change," Citigroup said on statements received by customers all over the country.

What's going on? It seems that this is something of an error. The seven day notice policy only applies to customers in Texas, Ira Stoll reports at The Future of Capitalism. It was accidentally included on customer statements nationwide.

"Whatever the explanation, it doesn't exactly inspire confidence in Citi," Stoll writes. "But it's hard to believe a bank would be sending out a notice like that on its statements."

[churchill]

Italy a Bigger Threat to EU than Greece; Italian Derivatives Draw Scrutiny; Mundell Wants Cap on Euro Gains; Academic Wonderland

http://globaleconomicanalysis.blogspot.com/

What about the UK's councils - I remember hearing that Islington Council had the same Debt as smaller countries / Are they in the same situation as Italy and the US so far as States California etc are concerned ? UK Next ?

[ronz28]

Bloom box a potentially revolutionary fuel-cell system was made public today and the new technology appears to be a game changer. The boxes create electricity by a chemical process that utilizes oxygen and fuel, but involves no combustion. Bloom's founder and CEO, K.R. Sridhar, insists all the materials in the box are cheap and available in abundance. Bloom says each large box - which can power about 100 homes - currently sells for $700-800,000. They hope within five to 10 years to roll out a smaller home version for about $3,000 a unit.

Google, FedEx, Staples, EBAY and Walmart are among the first 20 clients that have been secretly testing the technology Bloom is confirming.

John Donahoe, CEO of E-bay, confirms Bloom Boxes were installed at his corporate campus nine months ago. The company says the boxes already saved them over $100,000 in electricity bills. "It's been very successful thus far. [The Bloom Boxes] have done what they said they would do," says Donahoe. The five boxes are able to produce five times as much electricity as the 3,248 solar panels that E-bay installed on its campus roofs, says the CEO. "The footprint for Bloom is much more efficient," he tells Stahl.

http://www.cbsnews.com/stories/2010/02/18/...in6221135.shtml

[ding]

All of this financial and economic stuff is so over your head... You don't have the slightest f---ing idea what is and what is not.

If you knew anything, then why don't you ever contribute to the discussion ?

I think sokal means to blindly follow an ideology and lash out at anyone bringing new information that challenges his misinformed opinion.

No worries. I thought I could contribute here, but you gents are doing fine without me.

Carry on!

[Naam]

I feel what Socal means. Fanny and Maddy (whatever they are called) and the FHA are government owned entities right? They have been buying up most of the rotten fish and therefore kept/ and keep the market going. Question: Who funded these purchases and what would happen if they did not.

question: does it matter today? answer: no!

[midas]

I feel what Socal means. Fanny and Maddy (whatever they are called) and the FHA are government owned entities right? They have been buying up most of the rotten fish and therefore kept/ and keep the market going. Question: Who funded these purchases and what would happen if they did not.

question: does it matter today? answer: no!

question: does it matter today? Answer….I think it does

“ study this week argues that the country has a "shadow inventory" of 5 million houses that will hit the market over the next few years.”

http://www.businessinsider.com/henry-blodg...n-in-all-2010-2

[Naam]

I feel what Socal means. Fanny and Maddy (whatever they are called) and the FHA are government owned entities right? They have been buying up most of the rotten fish and therefore kept/ and keep the market going. Question: Who funded these purchases and what would happen if they did not.

question: does it matter today? answer: no!

question: does it matter today? Answer….I think it does

“ study this week argues that the country has a "shadow inventory" of 5 million houses that will hit the market over the next few years.”

well... perhaps it matters to you. it does not matter to me.

[flying]

question: does it matter today? Answer….I think it does

“ study this week argues that the country has a "shadow inventory" of 5 million houses that will hit the market over the next few years.”

well... perhaps it matters to you. it does not matter to me.

Matters to me & not because I am a building contractor.

But because it makes me wonder where do all the displaced tenants go?

I find it hard to imagine we can just say let them eat cake

Edited February 22, 2010 by flying

[Naam]

question: does it matter today? Answer….I think it does

“ study this week argues that the country has a "shadow inventory" of 5 million houses that will hit the market over the next few years.”

well... perhaps it matters to you. it does not matter to me.

Matters a bit to me & not just because I am a building contractor. But it does make me wonder where do all the displaced tenants go? I find it hard to imagine we can just say let them eat cake

unfortunately i foresee bleak times for you

[flying]

unfortunately i foresee bleak times for you

Like I said it is not me that I wonder about.

[Abrak]

Italy a Bigger Threat to EU than Greece; Italian Derivatives Draw Scrutiny; Mundell Wants Cap on Euro Gains; Academic Wonderland

http://globaleconomicanalysis.blogspot.com/

What about the UK's councils - I remember hearing that Islington Council had the same Debt as smaller countries / Are they in the same situation as Italy and the US so far as States California etc are concerned ? UK Next ?

You see Churchill here is the problem that Greece has caused. Although Italy has a very high public debt to GDP ratio I would think it has been about the most financially disciplined country in Euroland over the last 10 years. It was running primary surpluses for a while and its debt/GDP ratio was the same 10 years ago. Last year, with a budget deficit of 5%, it was one of the lowest in Euroland. In other words its high level of debt has engendered financial discipline. If financial indiscipline is guaranteed obviously people will not see that policy as happening in the future.

[churchill]

The race to the bottom - Buy $ now and then - Commodity Currencies or Asian currencies ? ( Apart from the Yen )

"If The US Can Do It, So Can We": Japan To Keep Pumping Cash And Monetizing Debt Until Deflation Goes Away

http://www.zerohedge.com/

[churchill]

Which sovereign(s) would you short?

The search for the next Greece is finding its way to an unlikely place: Japan.

http://ftalphaville.ft.com/blog/2010/02/22...rs-in-japanese/

[Naam]

Which sovereign(s) would you short? The search for the next Greece is finding its way to an unlikely place: Japan.

you can't short sovereign bonds unless you are willing to commit 15-20 million dollars and your bank finds a counterpart for that deal. if "alphaville" suggests that (i don't read its rubbish) its writers can ask for a certificate issued by me stating "no bloody idea but of no bloody idea a lot".

[lannarebirth]

The race to the bottom - Buy $ now and then - Commodity Currencies or Asian currencies ? ( Apart from the Yen )

"If The US Can Do It, So Can We": Japan To Keep Pumping Cash And Monetizing Debt Until Deflation Goes Away

http://www.zerohedge.com/

Didn't read the article, but I think US is taking its cues from Japan rather than vice versa.

[lannarebirth]

Which sovereign(s) would you short? The search for the next Greece is finding its way to an unlikely place: Japan.

you can't short sovereign bonds unless you are willing to commit 15-20 million dollars and your bank finds a counterpart for that deal. if "alphaville" suggests that (i don't read its rubbish) its writers can ask for a certificate issued by me stating "no bloody idea but of no bloody idea a lot".

You can do it with ETF's and of course most anyone can short US treasuries if they'd like but it can be an awfully fast market sometimes so you'd better come heavily armed.

[Gambles]

i submit to your superior knowledge (is it based on Fàckipedia?). i was "with" Soros in South-East Asia and made a bundle early 1998 and lost much more than a bundle in autumn 1998 because i was "with" Soros in Russia.

thanks for not listening

Although Soros is a bit pompous he explains the concept of 'reflexivity' (circular, non-linnear relationship between predictions, decisions, actions and reactions within markets). And he made a good deal of his money by manipulating market psychology. Certainly Sokal should read it so he doesnt have any more romantic dreams about laissez faire producing something bearing some resemblance to a sensible result. The market is always right is only something that nobody who has ever traded a market would say. I would have liked to have spent some time working for Soros.

I learned more about trading currencies in one evening from Soros than in several years of formal study

Yes, he does sound pompous about reflexivity but have you ever read the original Popper theories that Soros studied? Makes Soros sound lightweight!

;-)

[Gambles]

Which sovereign(s) would you short?

The search for the next Greece is finding its way to an unlikely place: Japan.

http://ftalphaville.ft.com/blog/2010/02/22...rs-in-japanese/

we're looking at related trades; you don't necessarily want to short the sovereigns - there may be more Beta in shorting. e.g. financials.

We tend to find that in practice short CFDs are often the best way to short on relatively small amounts

[flying]

Putin calms Greece, says U.S. debt big too

Gleb Bryanski

Moscow — Reuters Published on Tuesday, Feb. 16, 2010 12:03PM EST Last updated on Wednesday, Feb. 17, 2010 7:39AM EST

Russian Prime Minister Vladimir Putin played down Greece's economic woes on Tuesday, telling his visiting Greek counterpart that the United States were no better than Greece in handling its debt and fiscal deficit.

“As we all know, the global economic crisis started neither in Greece, nor in Russia, nor in Europe,” Mr. Putin told a news conference after talks with George Papandreou. “It came to us from across the ocean,” he said in a clear reference to the United States.

“There (in the U.S.) we can see similar problems - massive external debt, budget deficit,” Mr. Putin added, suggesting Russia and Greece should concentrate on the “real economy” to weather the economic crisis.

Mr. Papandreou arrived in Moscow amid rumours that the cash-strapped euro zone member may turn to Moscow, still running the world's third biggest foreign exchange reserves and eager to boost its political clout, for financial assistance.

Iceland began loan talks with Russia in October, 2008, after its main banks and currency collapsed. The tiny NATO member eventually secured funding from the International Monetary Fund and Nordic neighbours and the Russian loan never materialized.

On Tuesday European ministers told Greece it may need to take further steps to bring a swollen debt under control, with Germany saying Greece should imitate Ireland and Latvia, both of which are slashing spending and wages savagely.

Both Greek and Russian officials denied financial aid was on the agenda during talks in Moscow, while President Dmitry Medvedev said he had told Papandreou to turn to the International Monetary Fund and the World Bank for help.

“This is not the end of the world. I believe that we will come out of this situation much stronger than we are today,” Mr. Papandreou told the news conference.

[Naam]

Which sovereign(s) would you short? The search for the next Greece is finding its way to an unlikely place: Japan.

you can't short sovereign bonds unless you are willing to commit 15-20 million dollars and your bank finds a counterpart for that deal. if "alphaville" suggests that (i don't read its rubbish) its writers can ask for a certificate issued by me stating "no bloody idea but of no bloody idea a lot".

1. You can do it with ETF's and

2. of course most anyone can short US treasuries if they'd like but it can be an awfully fast market sometimes so you'd better come heavily armed.

1. not specific bonds but only a "package"

2. how do i short UST?

[flying]

Elizabeth Warren.......I like her explanations/description of the problem.

It is sad though that while Obama appointed her he gave her no teeth.

Nor does he have the balls to hear or act on what she has to say.

http://videos.mediaite.com/video/Elizabeth...-On-HBOs-Real-T

Edited February 23, 2010 by flying

[lannarebirth]

Which sovereign(s) would you short? The search for the next Greece is finding its way to an unlikely place: Japan.

you can't short sovereign bonds unless you are willing to commit 15-20 million dollars and your bank finds a counterpart for that deal. if "alphaville" suggests that (i don't read its rubbish) its writers can ask for a certificate issued by me stating "no bloody idea but of no bloody idea a lot".

1. You can do it with ETF's and

2. of course most anyone can short US treasuries if they'd like but it can be an awfully fast market sometimes so you'd better come heavily armed.

1. not specific bonds but only a "package"

2. how do i short UST?

http://www.interactivebrokers.com/en/p.php...p;ib_entity=llc

I'm not sure how opening an account here fits in with having one's financial affairs "offshore". I remeber when I ad CS account, most US securities were off limits.

[parryhandy]

For everybody that has a go at the doomsayers heres a parable written by Charles Munger the partner of Warren Buffet in Berkshire Hathaway.

Basically, It's Over

A parable about how one nation came to financial ruin.

By Charles MungerUpdated Sunday, Feb. 21, 2010, at 3:30 PM ET

http://www.slate.com/id/2245328/

Edited February 23, 2010 by parryhandy

[midas]

Matters to me & not because I am a building contractor.

But because it makes me wonder where do all the displaced tenants go?

I find it hard to imagine we can just say let them eat cake

flying here is your chance to get back ..

Do you think this will work ?

http://www.taxfree15.com/

[flying]

flying here is your chance to get back ..

Do you think this will work ?

Oh I have

Back when I wrote my congress critters & asked for no bail out as the majority did...my two rightly voted no.

But then later changed their votes as many did.... under pressure from Senate, Bush,Obama,Paulson et al

I wrote back & suggested it was not possible in that amount of time that they actually got back to their constituents nor had the right to change *our* vote.

At that point I realized we are now truly in a state of taxation without representation.

I decided then & there I would fulfill my end of the deal.

[lannarebirth]

For everybody that has a go at the doomsayers heres a parable written by Charles Munger the partner of Warren Buffet in Berkshire Hathaway.

Basically, It's Over

A parable about how one nation came to financial ruin.

By Charles MungerUpdated Sunday, Feb. 21, 2010, at 3:30 PM ET

http://www.slate.com/id/2245328/

Crazy old coot!

[Abrak]

A couple of comments on the Greek issue that I have read and quite liked....

'What is the point of taking on cancer to avoid a car crash?'

'If sovereign lifeguards saved the corporations when the crisis first hit, who is left to save the lifeguards?'