The BillyB, Aster & JR8 roundtable!

[JR8]

Let's have some fun!!

'As everyone knows' Spain is going to cost at least e500bn to bail out. But how much do you think they will ask for this weekend? Their little liquidity problem is going to be downplayed as much as possible, not least because it spells doom for the euro.

I say e30bn will be asked for, and that solely on the basis of bailing out a bank or two this week.

hehehe....

[BillyB]

I'd be more concerned about China cutting rates in the long term

[JR8]

Care to elaborate?

[BillyB]

I believe China is preempting a Euro bail-out and the ripple that creates, by acting early to stimulate economic activity. They've also got one eye on their growth rate which is in danger of slipping below the magic 8% figure - of which they attach significant importance to.

A slow down in China will also hit Australia and the vicious circle begins......

[JR8]

Thx, eeenteresting... that had been pretty much completely off my radar.


http://www.telegraph.co.uk/finance/fina ... e-cut.html

[BillyB]

Some good articles on Bbg over the past few days

http://www.bloomberg.com/news/2012-06-0 ... rs-1-.html

[JR8]

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'It may not prove so easy to convince global investors to mop up large issues of debt. "Our clients won't touch the EFSF because nobody knows what it really is. They have cut it out of their benchmarks altogether," said one bond trader.

The Chinese issued their own verdict on Thursday. The country's sovereign wealth fund said it will not buy any more debt in Europe until the region takes radical steps to restore credibility. "The risk is too big, and the return too low," said Lou Jiwei, the chairman of the China Investment Corporation.

"Europe hasn't got the right policies in place. There is a risk that the euro zone may fall apart and that risk is rising," he told the Wall Street Journal.'
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http://www.telegraph.co.uk/finance/comm ... itoral0806

[JR8]

I say e30bn will be asked for, and that solely on the basis of bailing out a bank or two this week.

'He [Spanish FinMin] denied that it was a rescue of the Spanish economy as a whole, but rather “financial support”

[BillyB]

Someone is giving those jenga blocks at the bottom of the tower a little pull!

[JR8]

And still the politicians haven't got the slightest clue what to do. Heavens help us.

Even on Friday they were denying that a bail-out was required, and even today they're pretending the issue is solely one of a bank or two with 'little problems'. I wish this comedy came with a smaller price tag.

Edit to add:

'The Prime Minister said he was not pressured into requesting aid... [next breath]... Spain admitted last week that its high borrowing costs of between 6pc and 7pc have meant it was effectively locked out of the money markets.'
http://www.telegraph.co.uk/finance/fina ... ilout.html

I'm sitting here wondering, really wondering, who the intended audience of this ridiculous lying is. I mean the politicians say it because they think people will be fooled, but who... I'm at a loss...

[JR8]

Ere, this is good for a laugh.

Italy, that can barely fund itself, is on the hook for 22% of the e100bn Spanish bail-out.

Can't be long until Rome come begging for a 'little help'?

Shutuppayaface!

[Strong Eagle]

Let's see... Spanish government bails out Spanish banks... Spanish banks bail out Spanish government. Round and round the money goes, where it stops, nobody knows.

[BillyB]

I saw one of the Spanish ministers on bloomberg today chirping on about the funding 'not being a bailout, and, apparently, the first the Spanish people knew about the bailout was watching it on TV. Their government didn't even tell them!

What a farce - it's like something out of a Benny Hill sketch

[JR8]

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'Spain had hailed its bail-out as a victory, presenting the aid from the eurozone’s rescue funds as coming without economic conditions.

But text messages published on Monday in Spain’s El Mundo showed politicians had used the threat of further eurozone turmoil to broker the deal.

Mariano Rajoy, Spain’s prime minister, reportedly told his finance minister: “Resist, we are the 4th power of the EZ [eurozone]. Spain is not Uganda.”

[JR8]

State theft, I mean 'capital controls' coming to Greek borders soon...