EU Economic News

[LVG]

"Controlled demolition mode" indeed.

The Chinese sovereign fund had stated it will no longer buy European debt.

Greek youth unemployment is up, industrial production down.

French economic output slumped unexpectedly.

Germany states that a hard Greek default is possible, and that it will affect Germany.

http://www.telegraph.co.uk/finance/...nd-stops-buying-European-government-debt.html

Over the last few days, it's been interesting to see stocks and PMs slump, but the US Dollar rise.

Then there was the lowering of 26 Spanish banks credit ratings.

This is going to be a wild ride if the last Greek attempt to form a government fails. We may see a hard Greek default with no Greek government, depending on how the timeframe works out.

 

[jefftheshark]

"Controlled demolition mode" indeed.

The Chinese sovereign fund had stated it will no longer buy European debt.

Greek youth unemployment is up, industrial production down.

French economic output slumped unexpectedly.

Germany states that a hard Greek default is possible, and that it will affect Germany.

http://www.telegraph.co.uk/finance/...nd-stops-buying-European-government-debt.html

Over the last few days, it's been interesting to see stocks and PMs slump, but the US Dollar rise.

Then there was the lowering of 26 Spanish banks credit ratings.

This is going to be a wild ride if the last Greek attempt to form a government fails. We may see a hard Greek default with no Greek government, depending on how the timeframe works out.

In regards to Greece I believe they're going to be holding elections in June. I can't see any situation where a pro-bailout movement will gather any steam so this goose is cooked.

The third largest bank in Spain was nationalized last week, with more on the way. There is no possibility that the EU can backstop Greece and Spain, especially with Ireland, Portugal, Italy and now France coming to the well. The government in the Netherlands failed a couple of weeks back, after the one in Brussels did as well. Merkle is on the ropes. Almost every government in Europe has fallen in the past several months, which can't be spun as a stabilizing set of events. Not to go all Yeats, but the center isn't going to hold.

There are basically two possibilities left. Either the EU will move toward a political union or they will break up into their original components. With the current political climate the first option is a non-starter.

JTS

 

[LVG]

In regards to Greece I believe they're going to be holding elections in June. I can't see any situation where a pro-bailout movement will gather any steam so this goose is cooked.

The third largest bank in Spain was nationalized last week, with more on the way. There is no possibility that the EU can backstop Greece and Spain, especially with Ireland, Portugal, Italy and now France coming to the well. The government in the Netherlands failed a couple of weeks back, after the one in Brussels did as well. Merkle is on the ropes. Almost every government in Europe has fallen in the past several months, which can't be spun as a stabilizing set of events. Not to go all Yeats, but the center isn't going to hold.

There are basically two possibilities left. Either the EU will move toward a political union or they will break up into their original components. With the current political climate the first option is a non-starter.

JTS

Cheery picture. I was reading about something today ( http://m.cnbc.com/id/47419011 ) about how a Greek debt payment was due next week. Here's the kicker - usually those payments have the legal language of if the payment is more than 7 days late, then that specific payment is in default.

But that's not the case with Greece. Instead, as a part of the bailout package, that specific language was removed, and the general clause prevails - if the debt is not paid within 30 days, then the Greek government is in default. Period, end of story.

There was some talk back at the beginning of this whole mess that you may see the majority of member nations revert back to their original currency, but that there was a possibility that Germany would form a "northern block" to keep the Euro alive with those countries that fiscally were close to it.

With the destabilization of France, this now appears unlikely. This is my really long way of saying that I agree with you.

 

[LVG]

Former UK Chancellor: EU banking system is in tatters.

http://www.bbc.co.uk/news/uk-politics-18137239