European leaders have decided that, despite a track record a mile long, packed with failures, they really do know how to utilize resources and yield a positive result. So, temporarily ignoring the trillions of euros in debt they possess, which are bursting at the seams, they will likely begin issuing “project bonds”.
What is a project bond, you ask? Well, it is definitely not a euro area bond, as Germany and Austria both came out today (at almost exactly the same time as the announcement of an agreement on project bonds) and repeated that they would fight Eurobonds to the grave.
So, if project bonds are not euro area bonds, who is backing the project bonds?
Why, all of Europe of course. Which sounds awfully similar to Eurobonds.
So why is Germany saying they are not backing Eurobonds? Well, mostly because the number of bonds to be issued are rather scarce; a few hundred million euros worth. Far too little to really concern Germany – or accomplish anything meaningful, for that matter.
This is a small consolation prize for Francois & Friends. Thanks for playing. Fuck off, now.
And why should Germany act otherwise? They aren’t stupid. They know that the only thing worse than having idiot neighbors is having idiot neighbors with your PIN number. What do European politicians think they could possibly build to bail them out of this mess? A highway to nowhere? Maybe some bridges? A few more airports? Or maybe they just blow the wad erecting statues of themselves in the image of Jupiter?
This is a topic of discussion only because EU politicians are NOT thinking.
Project bonds will be a screaming failure. They will not accomplish much; most of the money will probably get caught in the limbo of project approval and red tape. And what they do accomplish will not positively impact the EZ. For reference, please refer to ‘shovel ready projects’ and the inspiring progress they have helped to usher in here at home.
If you’re a well-connected solar panel manufacturer in southern Spain, this is probably good news for you, as you’re about to be funneled hundreds of millions, only half of which you’ll be obliged to round trip into the reelection campaigns of the men and women who green light your funding approval form.
If you’re anybody else, this is a distraction.
If you enjoy the content at iBankCoin, please follow us on Twitter
Great post yet again.
Sorry folks, but my ultimate ‘correction guage’ Cameco Corporation is saying we have lower to go yet. If that piece of shit cannot catch a bid, there is no “risk on”.
The CCJ test…it never fails.
Cain… You see this? http://finance.yahoo.com/news/cameco-announces-filing-preliminary-shelf-193900783.html
Didn’t they say in the latest conference call they won’t need to raise money? WTF!
This is the second company I’ve seen pushing to raise big money. It’s like they’re scrambling to secure financing. I didn’t see anything in CCJ’s latest filing to suggest they took a hit. I’ll read it over again when I get a chance.
I have been seeing many signs of shovel ready where I live. Its all projects to put side walks in places where no body would ever walk (like along endless stretches of 4 lane roads between shopping malls. Its as if the money was held back from 2-3 years ago and is being unleashed now to put Obumber union workers to work so they vote for him, but the projects are totally of the bridge to nowhere sort. Any tax payer who sees this and still votes for this idiot is and even greater idiot.