A $JPM analyst surmised that Spain could need up to 350 billion euros to be out of the woods on their debt problems. But the real question is how will Spain shoulder this massive sovereign debt balloon?
Comments »GDP to Bailout Ratio: Spanish Bailout is Twice That of TARP, Spain is Greece, and Italy is Next
Too much to read in this article to get out all the ideas presented in a quick note; so get to reading about the cluster fuck that is Europe.
Comments »Ireland Would Like to Renegotiate Loan Terms After Spain’s Sweetheart ‘Unconditional’ Deal
“Well that didn’t take long. The ink on the #Spailout is not dry yet (well technically there is no ink, because none of the actual details of the Spanish banking system rescue are even remotely known, and likely won’t be because when it comes to answering where the money comes from there simply is no answer) and we already have an answer to one of our questions. Recall that mere hours ago we asked: “We also wonder how will Ireland feel knowing that it has to suffer under backbreaking austerity in exchange for Troika generosity, while Spain gets away scott free.” We now know. From the AFP: “Ireland wants to renegotiate its rescue plan to benefit from the same treatment as Spain, which looks set to win a bailout for its banks without any broader economic reforms in return, European sources said on Saturday.”
Comments »Develpments In Europe May Spawn Further Ratings Reviews
New York, June 08, 2012 — Recent developments in Spain and Greece could lead to rating reviews and actions on many of the euro area countries, says Moody’s Investors Service in the report “Rating Euro Area Governments Through Extraordinary Times — Implications of Spain’s bank recapitalisation needs and the rising risk of a Greek Exit”.
As Spain moves closer to the need for direct external support from its European partners, the increased risk to the country’s creditors may prompt further rating actions. The official estimates of recapitalising Spain’s banking system have risen significantly and the country’s indirect reliance on European Central Bank (ECB) funding via its banks has been growing. Moody’s is assessing the implications of these increased pressures and will take any rating actions necessary to reflect the risk to Spanish government creditors. Moody’s rating on Spain is currently A3 with a negative outlook.
However, Spain’s banking problem is largely specific to the country and is not likely to be a major source of contagion to other euro area countries, except for Italy, which likewise has a growing funding reliance on the ECB through its banks.
In contrast, Moody’s says that if the risk of a Greek exit from the euro were to rise further, it could lead to additional rating pressures throughout the region. Greece’s exit from the euro would lead to substantial losses for investors in Greek securities, both directly as a result of the redenomination and indirectly as a result of the severe macroeconomic dislocation that would likely follow. It could also pose a threat to the euro’s continued existence.
Read more here.
Comments »Europeans Lobby the U.N. for a Tax Upon American Internet Companies
“The way the Internet operates as we know it could all soon change. A recently leaked document reveals that a European-based lobby group has asked the United Nations to tax American websites that provide services abroad.
In December, the leak reveals, the European Telecommunications Network Operators Association (ETNO) approached the United Nations with a proposal that would outline a restructuring of the Internet’s business model when taking into account Web entities with an international presence. If approved, the legislation would tax American-based content providers — such as Apple, Google and Netflix — for offering services to customers overseas. Should they get their wish, the ETNO might soon usher in some serious revisions for the International Telecommunications Regulations (ITR), a legislation that deals with cross-border communications traffic that has remained untouched since its last revision in 1988.”
Comments »Felix Zulauf: The Euro Will Disintegrate, China Will Burst, Credit Markets Could Get Nationalized
No hopium read here. Read more on his thoughts from the Barron’s Roundtable.
Comments »Documentary: Deliberate Implosion of the U.S. Economy
Cheers on your weekend !
[youtube://http://www.youtube.com/watch?v=IHTs6NqhHHg 450 300]Former Assistant Secretary of Housing under George H.W. Bush Catherine Austin Fitts blows the whistle on how the financial terrorists have deliberately imploded the US economy and transferred gargantuan amounts of wealth offshore as a means of sacrificing the American middle class.
Fitts documents how trillions of dollars went missing from government coffers in the 90′s and how she was personally targeted for exposing the fraud.
Fitts explains how every dollar of debt issued to service every war, building project, and government program since the American Revolution up to around 2 years ago — around $12 trillion — has been doubled again in just the last 18 months alone with the bank bailouts.
“We’re literally witnessing the leveraged buyout of a country and that’s why I call it a financial coup d’état, and that’s what the bailout is for,” states Fitts.
Comments »Police Taser an 8 Month Pregnant Lady for Parking Violation
Even if she tried to ditch the cops there is no need to taser somebody. You can simply pull them over and issue another citation or arrest them if need be.
Comments »Geithner and Bernanke Are Very Worried Over European Banks
An insider revealed after a meeting yesterday that both Bernanke and Geithner were very worried about Europe’s debt problems. Among the topics discussed the most important was:
“One of the issues which we talked most was how to deal with the banking sector in Spain or in some other European countries because we should avoid a new banking crisis,” Katainen said. “This is an issue which we are considering right now.”
Comments »The War of Terror
[youtube://http://www.youtube.com/watch?v=0lRC24a44tY 450 300]
Comments »How Will Germany Save the Euro If They Themselves are Teetering on Disaster ?
“While everybody’s rightly worried about Spain as the next likely victim of the European debt crisis, nobody’s thinking much about Germany. It could be in more trouble than we realize.
That’s the message of a presentationmaking the rounds Tuesday on Wall Street by Carmel Asset Management, a New York investment firm. Entitled “Achtung Baby: Germany Is Riskier Than You Think,”
Comments »Record number of Americans scorn both Dems and the GOP
“The number of American voters unhappy with both the Democratic and Republican parties has reached a 75-year record high, according to a new poll conducted by the Pew Research Center.”
Comments »$JPM Charges 10.25% on Student Loans While SLM Charges 9.25%; Predatory Lending Has Reached Disgusting Proportions
“JPMorgan Chase & Co. (JPM) charges Mirella Tovar as much as 10.25 percent annual interest on her student loans — a rate as high as a credit card.
The 24-year-old aspiring graphic designer, the first in her family to go to college, is among millions of former students paying off high-interest loans to private lenders, among them JPMorgan,SLM Corp. (SLM) and Discover Financial Services. In a good month, Tovar earns $730 as a part-time hostess in a pizza parlor, and most of that money goes toward her debt of $98,000.
Unlike the federal student-loan program, which lets consumers borrow at fixed rates directly from the government, these loans from at least 30 banks and other private lenders feature mostly variable rates that can be more than twice what some people pay in the U.S. program. With college costs spiraling, the marketing and interest rates of these loans are drawing increasing complaints from borrowers and regulators, who say teenage consumers often don’t understand their terms.”
Comments »Disturbing Statistic
Thursday is a Big Day for Spain To See Just How Shut Out They May be From the Bond Market
Spain must issue $2.5 billion in medium term paper and expects to see high risk premiums or yields.
Comments »Spain Gets on Their Knees and Begs for EU Aid to Help Out the Banking System
After $28+ in capital injection it is quite worrisome that Spain is asking for more aid so quickly.
Comments »A Government Out of Control
[youtube://http://www.youtube.com/watch?v=4PQvGecMg6Q&feature=relmfu 450 300] [youtube://http://www.youtube.com/watch?v=B5faReUdN50&feature=endscreen&NR=1 450 300] Comments »
Auditor Says ECB Needs More Risk Management
“The European Central Bank lacks an independent risk management authority and suffers from a disconnect between management and risk management authorities, at least as of 2010, according to an independent audit report released today.
“No independent, single, body, such as a Chief Risk Officer or overall risk management committee, has been set up between the EB and the two risk function/units,” the report found.”
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